ARMK
Aramark
Consumer, Event Driven/Special Sit
06/29/2015
Presented
| Date | 06/24/2015 |
| Price | $31.56 |
| Market Cap | N/A |
| Ent Value | $13.02B |
| P/E Ratio | 32.7x |
| Book Value | $7.62 |
| Div Yield | 1.09% |
| Shares O/S | 238.20M |
| Ave Daily Vol | 1,850,000 |
| Short Int | 1.86% |
Current
| Price | $39.01 |
| Market Cap | $10.28B |
| Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients primarily in North America. The company offers managed services, including dining, catering, food service management, convenience-oriented retail operations, grounds and facilities maintenance, custodial, energy and construction management, and capital project management. It also provides non-clinical support services, such as patient food and nutrition, and retail food services; and facilities services comprising clinical equipment maintenance, environmental, laundry and linen distribution, plant operations, strategic/technical, energy and supply chain management, purchasing, and central transportation. In addition, the company provides on-site restaurants, catering, convenience stores, and executive dining services; coffee and vending services; and facility management services comprising housekeeping management, plant operations and maintenance, energy management, laundry and linen, grounds keeping, landscaping, transportation, capital program management and commissioning services, and other facility consulting services. Further, it offers facility and business support services for mining and oil operations; and concessions, banquet and catering, retail and merchandise sales, recreational and lodging, and facility management services for sports, entertainment, and recreational facilities. Additionally, the company provides correctional food, and food and facilities management services for parks; and operates commissaries, laundry facilities, and property rooms. It also rents, sells, cleans, maintains, and delivers uniform and career apparel, and other textile items; and provides walk-off mats, cleaning cloths, and disposable towels. The company was formerly known as ARAMARK Holdings Corporation and changed its name to Aramark in May 2014. Aramark was founded in 1959 and is headquartered in Philadelphia, Pennsylvania. |
Publicly traded companies mentioned herein: Aramark (ARMK), Compass Group PLC (CPG LN)
Highlights
The presenter said that his focus coming into 2015 was to find companies that have a lot of control over the variables that will ultimately drive growth and stock performance, and he views Aramark (ARMK) as one such situation. Following a 2006 management buyout by then Chairman and CEO Joseph Neubauer and a group of private equity and investment bank firms for $8.3 billion (including the assumption of about $2 billion in debt) the company's overall business performance has slipped. In the presenter's opinion ARMK's margins should be 225+ bps higher. He is long the stock because he can see a path for operational improvements that are likely to boost margins under new CEO Eric Foss.
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