Part of the reason why Aramark hasn't recovered as much is because of pricing increase lags. Their costs rose and they couldn't pass along those costs until recently. You finally saw good margins last quarter and their management says should continue improving.
Inflation is still a relatively recent phenomenon... I'd describe the 10-year period they've been public as pretty lackluster. But I see your point and perhaps that's a driving force for their bullish outlook on revenue/margins. Same could be said for UniformCo.
I'm skeptical there'll be any significant mispricing but we'll see what when issued trading looks like.
Yeah their history has been bad. The new(ish) CEO/management team has been doing some interesting things though (changing employee incentives, decentralizing decisions, integrating their group purchasing organization)...there shouldn't be insurmountable reasons why Aramark can't close the operational gap between them and Compass. But yeah I agree with you, it's still a "show me" story.
Part of the reason why Aramark hasn't recovered as much is because of pricing increase lags. Their costs rose and they couldn't pass along those costs until recently. You finally saw good margins last quarter and their management says should continue improving.
Inflation is still a relatively recent phenomenon... I'd describe the 10-year period they've been public as pretty lackluster. But I see your point and perhaps that's a driving force for their bullish outlook on revenue/margins. Same could be said for UniformCo.
I'm skeptical there'll be any significant mispricing but we'll see what when issued trading looks like.
Yeah their history has been bad. The new(ish) CEO/management team has been doing some interesting things though (changing employee incentives, decentralizing decisions, integrating their group purchasing organization)...there shouldn't be insurmountable reasons why Aramark can't close the operational gap between them and Compass. But yeah I agree with you, it's still a "show me" story.