Revenue Growth - Revenue increased by 8% year-over-year to $17.4 billion, with organic revenue growth of 10%[6][8] - Revenue for the fiscal year ended September 27, 2024, was $17,400,701, compared to $16,083,212 for the previous year, representing an 8.2% increase[51] - Revenue growth (as reported) for Aramark and Subsidiaries was 8.2% for the fiscal year ended September 27, 2024, reaching $17,400,701 thousand[59] - Adjusted revenue growth (organic) for Aramark and Subsidiaries was 9.9% for the fiscal year ended September 27, 2024, reaching $17,675,907 thousand[59] - Revenue growth (as reported) for the three months ended September 27, 2024, was 5.2% for Aramark and Subsidiaries, reaching $4,416,947 thousand[60] - Adjusted revenue growth (organic) for the three months ended September 27, 2024, was 6.9% for Aramark and Subsidiaries, reaching $4,489,325 thousand[60] Operating Income and Margins - Operating income rose by 13% to $707 million, and Adjusted Operating Income (AOI) grew by 20% to $882 million[9] - Adjusted operating income for Aramark and Subsidiaries increased by 18.8% to $882,218 thousand for the fiscal year ended September 27, 2024[59] - Adjusted operating income margin (constant currency) for Aramark and Subsidiaries was 5.1% for the fiscal year ended September 27, 2024[59] - Adjusted operating income for the three months ended September 27, 2024, increased by 7.2% to $271,371 thousand for Aramark and Subsidiaries[60] - Adjusted operating income margin (constant currency) for the three months ended September 27, 2024, was 6.1% for Aramark and Subsidiaries[60] Earnings Per Share (EPS) - GAAP EPS decreased by 42% to $0.99, while Adjusted EPS increased by 35% to $1.55[10] - Basic earnings per share attributable to Aramark stockholders from Continuing Operations was $1.00 for the fiscal year ended September 27, 2024, down from $1.72 in the previous year[51] - Diluted earnings per share attributable to Aramark stockholders from Continuing Operations was $0.99 for the fiscal year ended September 27, 2024, down from $1.71 in the previous year[51] - Adjusted Earnings Per Share (EPS) for the fiscal year ended September 27, 2024, was $1.55, a 76.1% increase from $0.88 in the previous year[61] - Adjusted Earnings Per Share (Constant Currency) for the fiscal year ended September 27, 2024, was $1.56, a 35.0% increase from $1.16 in the previous year[61] Cash Flow and Free Cash Flow - Net cash from operations increased by 42% to $727 million, and Free Cash Flow surged by 121% to $323 million[17] - Net cash provided by operating activities of Continuing Operations was $726,514 for the fiscal year ended September 27, 2024, up from $511,647 in the previous year[58] - Free Cash Flow for the fiscal year ended September 27, 2024, was $323.0 million, compared to $146.2 million in the previous year[65] - Net cash provided by operating activities of Continuing Operations for the fiscal year ended September 27, 2024, was $726.5 million, up from $511.6 million in the previous year[65] - Net purchases of property and equipment and other for the fiscal year ended September 27, 2024, were $403.5 million, compared to $365.5 million in the previous year[65] Leverage and Debt - The company's leverage ratio improved by 50 basis points to 3.4x, with over $2.6 billion in cash availability[18] - The company expects to reduce its leverage ratio to approximately 3.0x in fiscal 2025[27] - Net Debt to Covenant Adjusted EBITDA ratio improved to 3.4 for the twelve months ended September 27, 2024, from 3.9 in the previous year[63] - Effect of debt repayments includes $23.9 million for fiscal 2024 related to the repayment of Senior Notes due 2025[43] Dividends and Share Repurchases - Quarterly dividend increased by 11% to $0.105 per share[19] - The company authorized a new $500 million share repurchase program[23] Business Wins and Outlook - Annualized gross new business wins totaled more than $1.4 billion, representing 9% of prior year revenue[21] - Fiscal 2025 outlook includes organic revenue growth of 7.5% to 9.5%, AOI growth of 15% to 18%, and Adjusted EPS growth of 23% to 28%[27] Adjustments and Non-Recurring Items - Adjusted Revenue (Organic) represents revenue adjusted to eliminate the impact of currency translation[32] - Adjusted Operating Income adjusted for severance and other charges, including $6.8 million for Q4 2024 and $13.0 million for fiscal 2024[39] - Spin-off related charges include $8.8 million for fiscal 2024, primarily for accounting, legal, and advisory costs[40] - Gains, losses, and settlements impacting comparability include $18.2 million for Q4 and fiscal 2024, primarily for non-cash inventory adjustments[41] - Gain on sale of equity investments includes $25.1 million gain from the sale of the San Antonio Spurs NBA franchise for Q4 and fiscal 2024[42] - Tax impact of adjustments includes a $1.3 million benefit for Q4 2024 and a $5.8 million charge for fiscal 2024 related to the spin-off of the Uniform segment[44] - Adjusted EPS (Constant Currency) adjusted for currency translation and interest expense, net of tax, related to the $1.5 billion Senior Notes due 2025[34] - Covenant Adjusted EBITDA represents net income adjusted for interest, taxes, depreciation, and amortization, used for debt compliance[35] - Free Cash Flow represents net cash provided by operating activities less net purchases of property and equipment[36] Net Income and Adjusted Net Income - Net income from Continuing Operations attributable to Aramark stockholders was $262,522 for the fiscal year ended September 27, 2024, down from $447,676 in the previous year[51] - Net Income from Continuing Operations Attributable to Aramark Stockholders for the fiscal year ended September 27, 2024, was $262.5 million, compared to $447.7 million in the previous year, a decrease of 42.1%[61] - Adjusted Net Income for the fiscal year ended September 27, 2024, was $411.8 million, up 76.1% from $229.9 million in the previous year[61] - Adjusted Net Income (Constant Currency) for the fiscal year ended September 27, 2024, was $416.1 million, a 35.0% increase from $304.0 million in the previous year[61] Cash and Liabilities - Cash and cash equivalents decreased to $672,483 as of September 27, 2024, from $1,927,088 as of September 29, 2023[55] - Total current liabilities decreased to $4,214,210 as of September 27, 2024, from $5,029,967 as of September 29, 2023[56] - Net cash used in investing activities of Continuing Operations was $415,862 for the fiscal year ended September 27, 2024, compared to net cash provided by investing activities of $223,658 in the previous year[58] - Net cash used in financing activities of Continuing Operations was $1,561,196 for the fiscal year ended September 27, 2024, compared to net cash provided by financing activities of $659,627 in the previous year[58] Shares Outstanding - Weighted average shares outstanding (basic) increased to 263,045 for the fiscal year ended September 27, 2024, from 260,592 in the previous year[51] Covenant Adjusted EBITDA - Covenant Adjusted EBITDA for the twelve months ended September 27, 2024, was $1.335 billion, compared to $1.607 billion in the previous year[63]

U.S. stocks traded mixed toward the end of trading, with the Nasdaq Composite falling more than 50 points on Monday.The Dow traded up 0.76% to 44,324.99 while the NASDAQ fell 0.15% to 19,257.81. The S&P 500 also rose, gaining, 0.04% to 5,998.191.Check This Out: Top 4 Health Care Stocks That May Plunge This QuarterLeading and Lagging SectorsFinancials shares surged by 1.4% on Monday.In trading on Monday, information technology shares fell by 1.3%.Top HeadlineAramark ARMK reported better-than-expected fourth- ...

Aramark (NYSE:ARMK) Q4 2024 Earnings Conference Call November 11, 2024 8:30 AM ET Company Participants Felise Kissell - Senior Vice President, Investor Relations and Corporate Development John Zillmer - Chief Executive Officer Jim Tarangelo - Chief Financial Officer Conference Call Participants Neil Tyler - Redburn Atlantic Josh Chan - UBS Isaac Sellhausen - Oppenheimer Andrew Steinerman - JPMorgan Lizzie Dove - Goldman Sachs Jasper Bibb - Truist Securities Faiza Alwy - Deutsche Bank Adam Parrington - Stife ...

Key TakeawaysAramark reported better-than-expected adjusted profit as volumes increased.The food, beverages, and other services provider raised its quarterly dividend.The company also announced a $500 million share repurchase program. Shares of Aramark (ARMK) traded at an all-time high Monday as the provider of food, beverages, and other services to sports and entertainment venues posted better-than-expected adjusted profit as volumes grew. It also boosted its dividend and announced a new stock buyback plan ...

Core Insights - Aramark reported $4.42 billion in revenue for the quarter ended September 2024, a year-over-year decline of 9.9% and an EPS of $0.54 compared to $0.64 a year ago, missing the Zacks Consensus Estimate of $4.44 billion by 0.51% [1] Financial Performance Metrics - FSS International revenues were $1.24 billion, exceeding the four-analyst average estimate of $1.18 billion, representing a year-over-year increase of 9.5% [3] - FSS United States revenues were $3.18 billion, below the $3.25 billion average estimate, showing a year-over-year change of 3.6% [3] - Operating Income for FSS United States was $200.72 million, lower than the estimated $234.69 million [3] - Operating Income for FSS International was $46.21 million, compared to the average estimate of $48.78 million [3] - Adjusted Operating Income for Corporate was -$27.06 million, better than the average estimate of -$31.67 million [3] - Adjusted Operating Income for FSS United States was $240.63 million, below the estimated $255.14 million [3] - Adjusted Operating Income for FSS International was $57.80 million, exceeding the average estimate of $53.67 million [3] - Corporate Operating Income was -$28.13 million, compared to the estimated -$31.67 million [3] Stock Performance - Aramark shares returned +2.6% over the past month, while the Zacks S&P 500 composite increased by +4.4%, with the stock currently holding a Zacks Rank 3 (Hold) [4]

Core Viewpoint - Aramark reported quarterly earnings of $0.54 per share, matching the Zacks Consensus Estimate, but down from $0.64 per share a year ago, with revenues of $4.42 billion, missing estimates by 0.51% and down from $4.9 billion year-over-year [1][2]. Financial Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2]. - Aramark's shares have increased by approximately 39.2% year-to-date, outperforming the S&P 500's gain of 25.7% [3]. Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.49 for the next quarter and $1.91 for the current fiscal year, with revenues expected to be $4.66 billion and $18.45 billion respectively [7]. - The estimate revisions trend for Aramark is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]. Industry Context - The Zacks Industry Rank for Food - Miscellaneous places it in the bottom 36% of over 250 industries, suggesting that the industry's outlook could significantly impact Aramark's stock performance [8].

Fiscal 2024 Earnings Results Fiscal 2024 Earnings Results N O V E M B E R 1 1 , 2 0 2 4 2 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements include, but are not limited to, statements under the he ...

In its upcoming report, Aramark (ARMK) is predicted by Wall Street analysts to post quarterly earnings of $0.54 per share, reflecting a decline of 15.6% compared to the same period last year. Revenues are forecasted to be $4.44 billion, representing a year-over-year decrease of 9.4%.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Ahead of a co ...

Company Overview - Aramark (ARMK) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended September 2024, with earnings expected to be $0.54 per share, reflecting a -15.6% change [3][10] - Revenues are projected to be $4.44 billion, down 9.4% from the same quarter last year [3] Earnings Report Expectations - The earnings report is scheduled for release on November 11, 2024, and could influence the stock price significantly depending on whether the actual results exceed or fall short of expectations [2] - Management's discussion during the earnings call will play a crucial role in determining the sustainability of any immediate price changes and future earnings expectations [2] Estimate Revisions and Predictions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4] - The Most Accurate Estimate for Aramark is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.09%, suggesting a bearish sentiment among analysts regarding the company's earnings prospects [10][11] Historical Performance - In the last reported quarter, Aramark had an earnings surprise of +3.33%, reporting $0.31 per share against an expectation of $0.30 [12] - Over the past four quarters, the company has beaten consensus EPS estimates three times [13] Industry Context - Another company in the Zacks Food - Miscellaneous industry, Flowers Foods (FLO), is expected to post earnings of $0.30 per share for the same quarter, indicating a year-over-year change of +3.5% [17] - Flowers Foods' revenues are expected to be $1.2 billion, up 0.1% from the previous year [17]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $4.4 billion, reflecting an 11% organic growth year-over-year, driven by a mix of volume and pricing as well as new client contributions [6][16] - Operating income increased by 22% compared to the prior year, with adjusted operating income up 21% on a constant currency basis [6][16] - GAAP EPS was $0.22 and adjusted EPS was $0.31, representing an increase of over 50% versus the prior year on a constant currency basis [19] Business Segment Data and Key Metrics Changes - FSS U.S. achieved organic revenue growth of 9%, supported by increased per capita spending and event attendance in Sports and Entertainment [7][17] - The International segment saw organic revenue growth of 16%, with strong performance across all geographies, particularly in the U.K., Canada, and Spain [10][18] Market Data and Key Metrics Changes - The company reported strong sales in sports and entertainment, serving over 1.6 million visitors during the 2024 men's European football championships in Germany [11] - In Spain, over 280,000 fans were served during the Formula One Grand Prix, indicating robust demand in international markets [11] Company Strategy and Development Direction - The company is focused on expanding its culinary capabilities through partnerships, such as with Michelin Star Chef Daniel Boulud, to enhance corporate catering and special events [9] - Aramark is pursuing GPO acquisition opportunities to complement organic growth and enhance capabilities in key areas, particularly in international markets [13][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued business momentum into the next fiscal year, citing substantial growth opportunities ahead [5] - The company anticipates organic revenue growth of approximately 10% and adjusted EPS growth of approximately 35% for the full fiscal year [21] Other Important Information - The company has been recognized for its commitment to diversity and sustainability, being named one of the 50 most community-minded companies in the U.S. [15] - Aramark plans to sell its remaining ownership stake in the San Antonio Spurs NBA franchise, with proceeds expected to be used for debt repayment [14] Q&A Session Summary Question: Comments on contracting in higher education space - Management reported a strong selling season in higher education, achieving more new accounts than ever before, and expressed optimism for future growth in this sector [24][25] Question: Impact of new wins on operating margin expansion - Management indicated that new business maturity is no longer a significant headwind for operating margin expansion, with year-to-date margin expansion being strong [26][27] Question: Initiatives leading to success in international business - Management noted broad-based success in international markets, with high outsourcing activity and a robust sales pipeline [29][30] Question: Pipeline opportunities in sports and entertainment - Management confirmed ongoing opportunities in the sports and entertainment sector, including significant special event opportunities [39][40] Question: Business performance during a recession - Management emphasized the resilience of the business during economic downturns, citing a diverse set of sectors and profit centers [42][43] Question: GPO growth and margin opportunities - Management highlighted the focus on expanding GPO spend and the potential for significant growth in this area, particularly in Europe [46][48] Question: Current demand trends across segments - Management reported no significant signs of softer demand, with strong spending trends particularly in sports and entertainment [50] Question: Addressable market changes in B&I business - Management discussed the robust growth in the B&I segment and the potential for high-end catering opportunities through new initiatives [52][56] Question: Inflation trends and their impact - Management indicated that inflation is trending favorably, with expectations for continued moderate tailwinds into the next fiscal year [58][72] Question: Retention and net new contributions for the year - Management expects retention rates to align with historical averages, feeling confident about the current track [60]