Strong Results and Positive Developments Lifted Aramark (ARMK)

Artisan Partners, an investment management company, released its “Artisan Select Equity Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund’s Investor Class ARTNX, Advisor Class APDNX, and Institutional Class APHNX returned 6.77%, 6.76%, and 6.80%, respectively, in the second quarter, compared to a 10.94% return for the S&P 500 Index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2025.

In its second-quarter 2025 investor letter, Artisan Select Equity Fund highlighted stocks such as Aramark (NYSE:ARMK). Headquartered in Philadelphia, Pennsylvania, Aramark (NYSE:ARMK) is a food and facilities services provider. One-month return of Aramark (NYSE:ARMK) was -1.76%, and its shares lost 0.80% of their value over the last 52 weeks. On September 26, 2025, Aramark (NYSE:ARMK) stock closed at $38.42 per share, with a market capitalization of $10.099 billion.

Artisan Select Equity Fund stated the following regarding Aramark (NYSE:ARMK) in its second quarter 2025 investor letter:

“Aramark’s (NYSE:ARMK) shares rose 22% in the quarter. The company reported strong Q2 results, and its business continues to develop nicely. Aramark is one of the three largest contract caterers in the world. Contract catering is an attractive business with good growth prospects as institutions continue to outsource more and more of their onsite food service functions to scale operators such as Aramark. The outsourcing trend should continue as scale operators are able to provide a superior service at a lower cost than self-operators. Year to date, Aramark’s revenue has grown 9%, client retention remains very strong, and new business continues to roll in. The stock has appreciated significantly since our purchase, and the valuation is no longer compelling, though we believe that the business will continue to grow value per share at an attractive rate.”

Why Aramark (ARMK) Skyrocketed On Tuesday

Aramark (NYSE:ARMK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 30 hedge fund portfolios held Aramark (NYSE:ARMK) at the end of the second quarter, up from 28 in the previous quarter. Aramark’s (NYSE:ARMK) revenue increased to $4.6 billion in fiscal third quarter of 2025, reflecting a 6% growth along with slight favorable foreign exchange effects. While we acknowledge the risk and potential of Aramark (NYSE:ARMK) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Aramark (NYSE:ARMK) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Aramark (NYSE:ARMK) and shared the list of best stocks to invest in according to billionaire George Soros. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.