ARMK - Quick Take - We Estimate New Grand Canyon U Contract = $70M in Revenue

Research evidence excerpt

ARMK - Quick Take - We Estimate New Grand Canyon U Contract = $70M in Revenue

Truist Securities

Equity Research Report May 18, 2026

IT SERVICES: Industrial Services Aramark (ARMK)

ARMK - Quick Take - We Estimate New Grand Canyon U Contract Jasper Bibb

212-303-1742 = $70M in Revenue

Jasper.Bibb@truist.com

Aramark (ARMK, Buy) announced a new contract with Grand Canyon University this

morning. The contract includes dining services, athletics concessions and campus retail

Current Price (May 15, $53.08 programs. We estimate the contract will drive ~$70M in annual revenue, slightly higher than 2026)

investors may expect due to GCU's high levels of students living on campus. We note the

Stock Rating BUY contract represents a takeaway win from competitor Sodexo (SW-FR, Not Rated). Timing-

Unchanged wise, we assume the contract will transition ahead of the fall 2026 semester with a $65M

y/y tailwind to FY27 revenue. Over the life of the contract, we think Aramark will have an

Price Target $58.00 embedded tailwind from GCU enrollment growth as GCU service provider Grand Canyon

Unchanged Education (LOPE, NR) has a LT target to grow ground campus students 1k per year (4%

growth) from ~25k today toward ~50k long-term.

ARMK's win of the GCU relationship supports our view that the company can sustain

4 Page Document HSD organic growth in FY27 before any contribution from Data Center projects. We

think the contract can help backfill lost revenue due to a lost (underperforming) contract with

the University of Kentucky.

Reasons for this report

We outline our estimated $70M revenue contribution in Figure 1 below.

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