Aramark
Thesis
We believe that Aramark's core operations are undervalued and can see significant EPS enhancement through operational improvements and potential spinoff of its Uniform business. Our base case price target of $58 represents a 23% IRR, based on conservative growth and margin expansion assumptions, while a bear case of $25 assumes no growth and a lower multiple.
Did it work?
The stock price has increased by 83% since the pitch, which is a strong performance relative to the base case price target of $58, indicating that the thesis regarding undervaluation and operational improvements has played out positively. The significant price appreciation suggests that the market has recognized the value in Aramark's core operations, aligning with the thesis's expectations for EPS enhancement and growth.
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