Specialty Business Services
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ARMK vs EAT
Revenue, margins, valuation, and 5-year total return — side by side.
Restaurants
ARMK vs EAT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Specialty Business Services | Restaurants |
| Market Cap | $11.84B | $6.27B |
| Revenue (TTM) | $18.79B | $5.73B |
| Net Income (TTM) | $317M | $463M |
| Gross Margin | 7.0% | 46.0% |
| Operating Margin | 4.2% | 10.4% |
| Forward P/E | 20.3x | 13.7x |
| Total Debt | $5.72B | $1.69B |
| Cash & Equiv. | $639M | $19M |
ARMK vs EAT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Aramark (ARMK) | 100 | 241.1 | +141.1% |
| Brinker Internation… (EAT) | 100 | 555.2 | +455.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ARMK vs EAT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
ARMK is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 1 yrs, beta 0.71, yield 0.9%
- Lower volatility, beta 0.71, current ratio 0.99x
- Beta 0.71, yield 0.9%, current ratio 0.99x
EAT carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 21.9%, EPS growth 144.7%, 3Y rev CAGR 12.3%
- 229.9% 10Y total return vs ARMK's 97.1%
- 21.9% revenue growth vs ARMK's 6.4%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 21.9% revenue growth vs ARMK's 6.4% | |
| Value | Lower P/E (13.7x vs 20.3x) | |
| Quality / Margins | 8.1% margin vs ARMK's 1.7% | |
| Stability / Safety | Beta 0.71 vs EAT's 1.12, lower leverage | |
| Dividends | 0.9% yield; 1-year raise streak; the other pay no meaningful dividend | |
| Momentum (1Y) | +19.0% vs EAT's +5.3% | |
| Efficiency (ROA) | 17.0% ROA vs ARMK's 2.4%, ROIC 19.1% vs 7.3% |
ARMK vs EAT — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
ARMK vs EAT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
EAT leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
ARMK is the larger business by revenue, generating $18.8B annually — 3.3x EAT's $5.7B. EAT is the more profitable business, keeping 8.1% of every revenue dollar as net income compared to ARMK's 1.7%.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $18.8B | $5.7B |
| EBITDAEarnings before interest/tax | $1.3B | $819M |
| Net IncomeAfter-tax profit | $317M | $463M |
| Free Cash FlowCash after capex | $257M | $504M |
| Gross MarginGross profit ÷ Revenue | +7.0% | +46.0% |
| Operating MarginEBIT ÷ Revenue | +4.2% | +10.4% |
| Net MarginNet income ÷ Revenue | +1.7% | +8.1% |
| FCF MarginFCF ÷ Revenue | +1.4% | +8.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.1% | +3.2% |
| EPS Growth (YoY)Latest quarter vs prior year | -7.7% | +12.1% |
Valuation Metrics
EAT leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 17.6x trailing earnings, EAT trades at a 52% valuation discount to ARMK's 36.9x P/E. On an enterprise value basis, EAT's 11.1x EV/EBITDA is more attractive than ARMK's 13.3x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $11.8B | $6.3B |
| Enterprise ValueMkt cap + debt − cash | $16.9B | $7.9B |
| Trailing P/EPrice ÷ TTM EPS | 36.93x | 17.58x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.26x | 13.66x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.26x |
| EV / EBITDAEnterprise value multiple | 13.35x | 11.06x |
| Price / SalesMarket cap ÷ Revenue | 0.64x | 1.17x |
| Price / BookPrice ÷ Book value/share | 3.81x | 18.18x |
| Price / FCFMarket cap ÷ FCF | 26.06x | 15.17x |
Profitability & Efficiency
EAT leads this category, winning 7 of 8 comparable metrics.
Profitability & Efficiency
EAT delivers a 123.4% return on equity — every $100 of shareholder capital generates $123 in annual profit, vs $10 for ARMK. ARMK carries lower financial leverage with a 1.81x debt-to-equity ratio, signaling a more conservative balance sheet compared to EAT's 4.57x.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +9.8% | +123.4% |
| ROA (TTM)Return on assets | +2.4% | +17.0% |
| ROICReturn on invested capital | +7.3% | +19.1% |
| ROCEReturn on capital employed | +8.7% | +25.8% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 1.81x | 4.57x |
| Net DebtTotal debt minus cash | $5.1B | $1.7B |
| Cash & Equiv.Liquid assets | $639M | $19M |
| Total DebtShort + long-term debt | $5.7B | $1.7B |
| Interest CoverageEBIT ÷ Interest expense | 2.20x | 18.61x |
Total Returns (Dividends Reinvested)
EAT leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in EAT five years ago would be worth $22,577 today (with dividends reinvested), compared to $17,052 for ARMK. Over the past 12 months, ARMK leads with a +19.0% total return vs EAT's +5.3%. The 3-year compound annual growth rate (CAGR) favors EAT at 58.2% vs ARMK's 23.3% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +23.5% | -3.4% |
| 1-Year ReturnPast 12 months | +19.0% | +5.3% |
| 3-Year ReturnCumulative with dividends | +87.4% | +295.8% |
| 5-Year ReturnCumulative with dividends | +70.5% | +125.8% |
| 10-Year ReturnCumulative with dividends | +97.1% | +229.9% |
| CAGR (3Y)Annualised 3-year return | +23.3% | +58.2% |
Risk & Volatility
ARMK leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
ARMK is the less volatile stock with a 0.71 beta — it tends to amplify market swings less than EAT's 1.12 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ARMK currently trades 96.1% from its 52-week high vs EAT's 78.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.71x | 1.12x |
| 52-Week HighHighest price in past year | $46.88 | $187.12 |
| 52-Week LowLowest price in past year | $35.07 | $100.30 |
| % of 52W HighCurrent price vs 52-week peak | +96.1% | +78.2% |
| RSI (14)Momentum oscillator 0–100 | 62.0 | 50.6 |
| Avg Volume (50D)Average daily shares traded | 2.2M | 1.2M |
Analyst Outlook
ARMK leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates ARMK as "Buy" and EAT as "Buy". Consensus price targets imply 26.1% upside for EAT (target: $184) vs 4.7% for ARMK (target: $47). ARMK is the only dividend payer here at 0.92% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $47.20 | $184.46 |
| # AnalystsCovering analysts | 24 | 47 |
| Dividend YieldAnnual dividend ÷ price | +0.9% | — |
| Dividend StreakConsecutive years of raises | 1 | 0 |
| Dividend / ShareAnnual DPS | $0.41 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +1.2% | +1.4% |
EAT leads in 4 of 6 categories (Income & Cash Flow, Valuation Metrics). ARMK leads in 2 (Risk & Volatility, Analyst Outlook).
ARMK vs EAT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ARMK or EAT a better buy right now?
For growth investors, Brinker International, Inc.
(EAT) is the stronger pick with 21. 9% revenue growth year-over-year, versus 6. 4% for Aramark (ARMK). Brinker International, Inc. (EAT) offers the better valuation at 17. 6x trailing P/E (13. 7x forward), making it the more compelling value choice. Analysts rate Aramark (ARMK) a "Buy" — based on 24 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ARMK or EAT?
On trailing P/E, Brinker International, Inc.
(EAT) is the cheapest at 17. 6x versus Aramark at 36. 9x. On forward P/E, Brinker International, Inc. is actually cheaper at 13. 7x.
03Which is the better long-term investment — ARMK or EAT?
Over the past 5 years, Brinker International, Inc.
(EAT) delivered a total return of +125. 8%, compared to +70. 5% for Aramark (ARMK). Over 10 years, the gap is even starker: EAT returned +229. 9% versus ARMK's +97. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ARMK or EAT?
By beta (market sensitivity over 5 years), Aramark (ARMK) is the lower-risk stock at 0.
71β versus Brinker International, Inc. 's 1. 12β — meaning EAT is approximately 58% more volatile than ARMK relative to the S&P 500. On balance sheet safety, Aramark (ARMK) carries a lower debt/equity ratio of 181% versus 5% for Brinker International, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — ARMK or EAT?
By revenue growth (latest reported year), Brinker International, Inc.
(EAT) is pulling ahead at 21. 9% versus 6. 4% for Aramark (ARMK). On earnings-per-share growth, the picture is similar: Brinker International, Inc. grew EPS 144. 7% year-over-year, compared to 23. 2% for Aramark. Over a 3-year CAGR, EAT leads at 12. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — ARMK or EAT?
Brinker International, Inc.
(EAT) is the more profitable company, earning 7. 1% net margin versus 1. 8% for Aramark — meaning it keeps 7. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: EAT leads at 9. 5% versus 4. 3% for ARMK. At the gross margin level — before operating expenses — EAT leads at 18. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is ARMK or EAT more undervalued right now?
On forward earnings alone, Brinker International, Inc.
(EAT) trades at 13. 7x forward P/E versus 20. 3x for Aramark — 6. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EAT: 26. 1% to $184. 46.
08Which pays a better dividend — ARMK or EAT?
In this comparison, ARMK (0.
9% yield) pays a dividend. EAT does not pay a meaningful dividend and should not be held primarily for income.
09Is ARMK or EAT better for a retirement portfolio?
For long-horizon retirement investors, Aramark (ARMK) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
71), 0. 9% yield). Both have compounded well over 10 years (ARMK: +97. 1%, EAT: +229. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between ARMK and EAT?
These companies operate in different sectors (ARMK (Industrials) and EAT (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
In terms of investment character: ARMK is a mid-cap quality compounder stock; EAT is a small-cap high-growth stock. ARMK pays a dividend while EAT does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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