Aramark (ARMK) may be a giant in the food services industry, but it currently has far smaller margins than competitor Compass Group. Ari Sass, portfolio manager for the M.D. Sass Equity Income Plus fund, said Aramark shares could surge if new CEO Eric Foss turns that around. ‘We think they can grow their margins several hundred basis points over the next several years,’ said Sass. ‘That translates into about 40% to 50% earnings growth.’ Shares of Aramark are up approximately 2.5% so far in 2015. The M.D. Sass Equity Income Plus fund, which employs a covered call strategy that can raise yield by capping a stock’s upside, has returned just over 2% year-to-date. Sass is also bullish on Sinclair Broadcast Group, up 8.5% year-to-date, because the company will see a boost as it enters the political spending season, as well as the potential for higher subscriber fees.
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