Financial Performance - Revenue for the three months ended January 2, 2026, was $4,831,549, an increase of 6.1% compared to $4,552,086 for the same period in 2024[16] - Operating income for the same period was $217,549, slightly up from $217,264 in the previous year[16] - Net income attributable to Aramark stockholders was $96,161, down from $105,619, representing a decrease of 8.2%[16] - Earnings per share attributable to Aramark stockholders decreased to $0.37 from $0.40, a decline of 7.5%[16] - The company reported comprehensive income of $113,436 for the three months ended January 2, 2026, compared to $76,699 in the prior year, an increase of 48.0%[19] - Net income attributable to Aramark stockholders for the three months ended January 2, 2026, was $96,161 thousand, compared to $105,619 thousand for the three months ended December 27, 2024, representing a decrease of approximately 9.2%[24] - Comprehensive income attributable to Aramark stockholders for the three months ended January 2, 2026, was $113,436 thousand, an increase from $76,699 thousand for the three months ended December 27, 2024, reflecting a growth of approximately 48.0%[36] - Adjusted operating income for the three months ended January 2, 2026, was $217.5 million, a slight increase of 0.1% compared to $217.3 million in the prior year[106] - Net income for the three months ended January 2, 2026, was $96.5 million, a decrease of 8.7% from $105.7 million in the prior year[106] Assets and Liabilities - Total current assets increased to $3,633,646 from $3,522,891, reflecting a growth of 3.2%[14] - Total current liabilities decreased to $2,855,588 from $3,546,722, a reduction of 19.5%[14] - Cash and cash equivalents at the end of the period were $439,633, down from $639,095, a decrease of 31.2%[14] - The company had long-term borrowings of $6,210,899, an increase from $5,374,394, reflecting a rise of 15.5%[14] - The balance of total stockholders' equity increased to $3,208,109 thousand as of January 2, 2026, up from $3,148,059 thousand as of October 3, 2025, indicating a growth of approximately 1.9%[24] - Cash and cash equivalents at the captive insurance subsidiary were $144.5 million as of January 2, 2026, compared to $133.5 million as of October 3, 2025, reflecting an increase of approximately 8.0%[38] - The carrying amount of investments in 50% or less owned entities accounted for under the equity method was $63.7 million as of January 2, 2026, down from $70.6 million as of October 3, 2025, representing a decrease of approximately 9.8%[40] Cash Flow - Net cash used in operating activities was $(782,200), compared to $(587,152) in the previous year, indicating a higher cash outflow[21] - Cash used in operating activities increased by $195.0 million to $782.2 million, primarily due to changes in operating assets and liabilities[128] - Cash used in investing activities decreased by $77.1 million to $153.7 million, mainly due to lower acquisitions of certain businesses[130] - Cash provided by financing activities in fiscal 2026 was $625.0 million from borrowings under the Receivables Facility and $229.1 million from the revolving credit facility[131] - Cash provided by financing activities in fiscal 2025 was $525.0 million from borrowings under the Receivables Facility and $178.4 million from the revolving credit facility[132] Revenue Segments - FSS United States revenue reached $3,362.1 million, up from $3,301.0 million, while FSS International revenue increased to $1,469.4 million from $1,251.1 million, reflecting growth rates of 1.8% and 17.5% respectively[64] - Revenue is recognized upon the transfer of control of the promised product or service to customers, reflecting the consideration expected to be received[62] - The company recognized $229.0 million of revenue from deferred income during the three months ended January 2, 2026[67] - Deferred income decreased to $188.8 million as of January 2, 2026, from $364.0 million as of October 3, 2025, indicating a reduction of 48.2%[67] - Foreign currency translation positively impacted revenue by 1.1% during the three months ended January 2, 2026[107] - The company experienced an estimated impact of approximately 3% from the reduced number of operational service days due to the calendar shift related to the fifty-third week in fiscal 2025[107] Costs and Expenses - The cost of services provided (exclusive of depreciation and amortization) increased to $4,415.4 million, up 6.4% or $264.2 million from $4,151.2 million in the prior year[106] - Personnel costs rose by $170.5 million to $2,029.7 million, reflecting business expansion and higher medical claims[109] - Interest expense for the three months ended January 2, 2026, was $81.9 million, an increase of 8.1% from $75.8 million in the prior year[106] - Cost of services provided increased by $264.2 million to $4,415.4 million in fiscal 2026, driven by higher food and support service costs and personnel costs[109] Shareholder Actions - The company declared dividends of $0.12 per share, totaling $33,601 thousand for the period, compared to $0.105 per share totaling $29,858 thousand in the previous period, marking an increase of approximately 12.3%[24] - The Board of Directors declared a dividend of $0.12 per share, payable on March 4, 2026, to stockholders of record as of February 18, 2026[71] - The company intends to continue paying cash dividends, subject to compliance with applicable laws and financial conditions[133] - Share repurchase activity included the purchase of 792,445 shares at an average price of $36.92 during the period from November 1, 2025, to November 28, 2025[159] - The total number of shares that may yet be purchased under the repurchase program is 330,590[159] - The company has a share repurchase program authorized for up to $500 million of outstanding common stock, with no fixed expiration date[159] Debt and Financing - The company completed a debt transaction, refinancing $2.4 billion of U.S. Term B-8 Loans with new U.S. Term B-10 Loans due June 2030[151] - As of January 2, 2026, there was $936.2 million of availability under the senior secured revolving credit facility[50] - The actual Consolidated Secured Debt Ratio was 2.94x, well below the maximum requirement of 5.125x[142] - The Interest Coverage Ratio was 4.24x, exceeding the minimum requirement of 2.000x[142] - Covenant Adjusted EBITDA for the twelve months ended January 2, 2026, was $1,482.0 million[141] - The company is exposed to interest rate changes and manages this risk through variable-rate and fixed-rate debt[151] Legal and Regulatory Matters - As of January 2, 2026, the company does not believe that ongoing legal proceedings will materially affect its financial condition or results of operations[155] - The company is engaged in informal settlement discussions regarding allegations of environmental law violations, which are not expected to have a material adverse effect on financial results as of January 2, 2026[156] - The company has established reserves and resources to address potential legal actions, indicating a proactive approach to risk management[155] - The company is subject to various federal, state, and local laws governing the handling and disposal of water wastes and other substances[156] - There have been no material changes to the risk factors disclosed in the Annual Report for the fiscal year ended October 3, 2025[158] Accounting and Reporting - The company is currently assessing the impact of new accounting standards on its financial statement disclosures, including those related to income tax disclosures and internal-use software[30][32] - The financial statements include condensed consolidated balance sheets and statements of income for the three months ended January 2, 2026[170] - The effective tax rate increased to 28.8% in fiscal 2026, resulting in a provision for income taxes increase of $3.3 million[115]

Core Viewpoint - Aramark's shares rose following a modest earnings beat and stronger-than-expected revenue, driven by robust new business momentum and record client retention while reaffirming its full-year outlook [1][5]. Quarterly Metrics - The company reported first-quarter adjusted earnings per share of 51 cents, exceeding the analyst consensus estimate of 50 cents [1]. - Quarterly sales reached $4.832 billion, reflecting a 6% year-over-year increase, surpassing the expected $4.739 billion [1]. - Operating income was $218 million, slightly higher than the previous year, while adjusted operating income (AOI) increased by 1% to $263 million [3]. Business Momentum - Aramark indicated strong momentum in new business wins, with net new business tracking ahead of its run rate, positioning the company to meet full-year growth targets [2]. - The favorable effect of currency translation contributed approximately $51 million to revenue, while organic revenue increased by 5% compared to the same period last year [2]. Financial Position - At the end of the quarter, the company had approximately $1.4 billion in cash availability [3]. Dividend Announcement - Aramark approved a quarterly dividend of 12 cents per share, payable on March 4, 2026 [4]. Outlook - The company reaffirmed its fiscal 2026 adjusted EPS guidance of $2.18 to $2.28, compared to analysts' estimates of $2.21 [5]. - Sales guidance is maintained at $19.55 billion to $19.95 billion, against a consensus of $19.71 billion [5].

Financial Data and Key Metrics Changes - Organic revenue for Aramark grew 5% to $4.8 billion in Q1 2026, with an estimated 8% growth without the calendar shift impact [6][16] - Operating income was $218 million, slightly up from the prior year, while adjusted operating income was $263 million, up 1% on a constant currency basis [17] - GAAP EPS was $0.36 and adjusted EPS was $0.51, with a calendar shift impacting adjusted EPS growth by approximately 13% [19] Business Segment Data and Key Metrics Changes - FSS US organic revenue increased to $3.4 billion or 2%, with a potential growth of approximately 5% without the calendar shift [8] - International revenue reached $1.5 billion, an increase of over 13% year-over-year on an organic basis, maintaining double-digit growth for 19 consecutive quarters [11] - The U.S. AOI had a 1% decline compared to the same period last year, while international segment AOI grew by 12% on a constant currency basis [18] Market Data and Key Metrics Changes - The U.K., Spain, Germany, and Chile were the leading contributors to international revenue growth [11] - The company reported strong client retention levels across all markets, with significant new business wins in healthcare, education, and corrections in the U.S. [5][10] Company Strategy and Development Direction - The company aims for a net new target of 4%-5% in fiscal 2026, driven by strong client retention and new business opportunities [6] - Aramark is focusing on expanding its global supply chain GPO network, particularly in hospitality areas such as theme parks and hotels [6][13] - The company is committed to leveraging AI technology to enhance supply chain efficiencies and operational productivity [13][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record-breaking financial performance, citing strong business momentum and client retention [5][20] - The company anticipates continued revenue growth in Q2, driven by onboarding new business and maintaining high retention rates [21][22] - Management noted that inflation is in line with expectations, with food and labor costs running around 3% [70][71] Other Important Information - The company repurchased $30 million of its shares as part of its share repurchase program [19] - Capital expenditures were higher due to commitments associated with sizable new business wins, expected to normalize over the year [61] Q&A Session Summary Question: Competitive business wins and future trends - Management noted significant success in competitive new account wins, particularly in large organizations, and expects this trend to continue [26][27] Question: Upcoming large bidding opportunities and retention strategies - Management confirmed ongoing large bidding opportunities but did not disclose specifics due to competitive reasons; retention remains a key focus [29][30] Question: Revenue growth in sports and leisure segments - Revenue growth is broad-based across business lines, with strong performance in sports and entertainment, particularly in collegiate athletics [35][37] Question: Pricing and volume contributions to organic growth - Pricing contributed about 3% to organic growth in Q1, with expectations for similar trends throughout the year [56] Question: Impact of inflation on costs - Inflation is running in line with expectations, with food prices around 3% and labor costs consistent across geographies [70][71] Question: Client retention and spending trends - Management emphasized a strong focus on client retention, with no significant changes in customer spending patterns observed [75][77] Question: Updates on large contracts and their impact - The RWJBarnabas contract is expected to have a significant impact in 2026, with a staged opening beginning in June [90][91] Question: Strategic shifts in client operations - Management noted a strategic shift among clients towards systemizing operations for cost efficiencies, which has led to larger contract wins [99][100]

Financial Data and Key Metrics Changes - Organic revenue for Q1 2026 grew by 5% to $4.8 billion, with an estimated 8% growth if not for the calendar shift [6][17] - Operating income was $218 million, with adjusted operating income at $263 million, reflecting a 1% increase on a constant currency basis [18] - GAAP EPS was $0.36 and adjusted EPS was $0.51, with a calendar shift impacting adjusted EPS growth by approximately 13% [20] Business Line Data and Key Metrics Changes - FSS U.S. organic revenue increased to $3.4 billion, a 2% growth, which would have been approximately 5% without the calendar shift [8] - International revenue reached $1.5 billion, an increase of over 13% year-over-year on an organic basis, with every country contributing to revenue growth [12] Market Data and Key Metrics Changes - The U.S. segment experienced a 1% decline in adjusted operating income, while the international segment had a year-over-year adjusted operating income growth of 12% on a constant currency basis [19] - The Workplace Experience group delivered a 17th consecutive quarter of double-digit growth, driven by new business wins and strong holiday catering activity [8] Company Strategy and Development Direction - The company is focused on maintaining high client retention rates and expanding its business in healthcare, education, and corrections sectors [5][10] - There is a strategic shift in client operations towards systemization to capture cost synergies, particularly in healthcare [101][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a net new target of 4%-5% for fiscal 2026, supported by strong client retention and new business opportunities [6][16] - The company anticipates continued strong revenue growth and profitability improvements driven by operational efficiencies and disciplined cost management [23][24] Other Important Information - The company is actively pursuing growth opportunities in its global supply chain and GPO network, with a focus on hospitality areas [14] - Capital expenditures were higher due to commitments associated with sizable new business wins, but are expected to normalize over the year [20][63] Q&A Session Summary Question: Competitive business wins and future trends - Management noted significant success in competitive new account wins, particularly in large organizations, and expects this trend to continue [28][29] Question: Upcoming large bidding opportunities and retention strategies - Management confirmed ongoing large bidding opportunities but did not disclose specifics due to competitive nature; retention remains a key focus [32][33] Question: Materiality of sports and leisure segment revenues - Revenue growth is broad-based across business lines, with strong performance in sports and entertainment, but no specific breakdown was provided [38][39] Question: Pricing and volume contributions to organic growth - Pricing contributed about 3% to organic growth in Q1, with expectations for similar trends throughout the year [59] Question: Impact of inflation on costs - Inflation is running in line with expectations at about 3%, with no extraordinary impacts on the profit guidance [72][73] Question: Changes in client retention and spending trends - Management reported record high retention rates and steady consumer spending, particularly in sports and entertainment [77][79] Question: Updates on the RWJBarnabas contract - The RWJBarnabas contract is expected to have a significant impact in 2026, with a staged opening beginning in summer [93][94] Question: Strategic shifts in client operations - A strategic shift is noted as clients seek to systemize operations for cost savings, particularly in healthcare [101][102]

Financial Data and Key Metrics Changes - Organic revenue for the first quarter grew by 5% to $4.8 billion, with an estimated 8% growth if not for the calendar shift [5][14] - Operating income was $218 million, slightly up from the prior year, while adjusted operating income was $263 million, up 1% on a constant currency basis [15][17] - GAAP EPS was $0.36 and adjusted EPS was $0.51, with the calendar shift impacting adjusted EPS growth by approximately 13% [17] Business Segment Data and Key Metrics Changes - FSS US organic revenue increased to $3.4 billion, or 2%, with an estimated 5% growth without the calendar shift [6] - International revenue reached $1.5 billion, an increase of over 13% year-over-year on an organic basis, marking the 19th consecutive quarter of double-digit growth [10] Market Data and Key Metrics Changes - The U.K., Spain, Germany, and Chile were highlighted as leading contributors to international revenue growth [10] - The company reported strong client retention levels across all markets, with significant new business wins in healthcare, education, and corrections in the U.S. [4][10] Company Strategy and Development Direction - The company aims for a net new target of 4%-5% in fiscal 2026, driven by strong client retention and new business opportunities [5] - There is a strategic shift in client operations towards systemization to capture cost synergies, particularly in healthcare [96][97] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, with expectations for organic revenue growth of 7%-9% and adjusted EPS growth of 20%-25% [19] - The company is focused on maintaining high client retention rates, which are currently better than the previous year [61] Other Important Information - The company is actively pursuing growth in its global supply chain and GPO network, with a focus on AI-driven technology to enhance efficiency [12] - Capital expenditures were higher due to commitments associated with new business wins, but are expected to normalize over the year [17][58] Q&A Session Summary Question: Competitive business wins and future expectations - Management noted significant success in competitive new account wins, particularly in large organizations, and expects this trend to continue [24][25] Question: Upcoming large bidding opportunities and retention strategies - Management confirmed ongoing large bidding opportunities but did not disclose specifics due to competitive reasons, emphasizing a strong focus on client retention [27][28] Question: Performance of specific business segments - Revenue growth is broad-based across business lines, with strong performance in both FSS US and international segments [34] Question: Pricing and volume contributions to organic growth - Pricing contributed about 3% to organic growth in Q1, with expectations for similar trends throughout the year [52][53] Question: Impact of inflation on costs - Inflation is running in line with expectations at about 3%, with no extraordinary impacts on the P&L [66][68] Question: Changes in client retention and spending trends - Management reported improved client retention and steady consumer spending trends, particularly in sports and entertainment [72][73] Question: Updates on large contracts and their impact - The RWJBarnabas contract is expected to have a significant impact in 2026, with a staged opening beginning in June [87][88]

分组1 - Aramark reported quarterly earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, with an earnings surprise of +1.11% [1] - The company posted revenues of $4.83 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.68% and showing a year-over-year increase from $4.55 billion [2] - Over the last four quarters, Aramark has surpassed consensus EPS estimates two times and topped revenue estimates once [2] 分组2 - The stock has gained approximately 5.3% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.47 on revenues of $4.74 billion, and for the current fiscal year, it is $2.21 on revenues of $19.68 billion [7] - The Zacks Industry Rank indicates that the Retail - Restaurants sector is currently in the bottom 25% of over 250 Zacks industries, which may impact stock performance [8]

z Q1 Fiscal 2026 Earnings Results F E B R U A R Y 1 0 , 2 0 2 6 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 heading, "Fiscal 2026 Outloo ...

Revenue Performance - Revenue for Q1 2026 was $4.8 billion, a 6% increase year-over-year, with organic revenue growth of 5%[5] - The calendar shift from the 53rd week in the prior year reduced revenue by an estimated 3%, but organic revenue growth would have been approximately 8% without this shift[4] - Total revenue for the three months ended January 2, 2026, was $4,831,549, representing a 6.1% increase compared to the same period in the previous year[49] Income and Earnings - Adjusted Operating Income (AOI) increased by 1% to $263 million, while operating income rose slightly by 0.1% to $218 million[6] - Net income attributable to Aramark stockholders for the first quarter of 2026 was $96,161, down from $105,619 in the first quarter of 2025, representing a decrease of 9.2%[43] - Basic earnings per share for the first quarter of 2026 was $0.37, compared to $0.40 in the first quarter of 2025[43] - Adjusted net income for the three months ended January 2, 2026, was $135,554, slightly down from $136,934 in the previous year[52] - Adjusted Earnings Per Share (Constant Currency) without the calendar shift was $0.57, up from $0.51 in the prior year[66] Cash Flow and Financial Position - Cash and cash equivalents at the end of the first quarter of 2026 were $439,633, down from $639,095 at the end of the previous quarter[45] - Net cash used in operating activities for the first quarter of 2026 was $(782,200), compared to $(587,152) in the first quarter of 2025[47] - Free cash flow for the three months ended January 2, 2026, was $(902,233), a decrease of $197,293 compared to $(704,940) in the same period last year[62] - Net debt as of January 2, 2026, was $5,807,510, with a net debt to covenant adjusted EBITDA ratio of 3.9[54] Business Growth and Strategy - Aramark anticipates full-year revenue for fiscal 2026 to be between $19.55 billion and $19.95 billion, reflecting a year-over-year growth of 7% to 9%[18] - Adjusted EPS is expected to grow by 20% to 25%, with a target range of $2.18 to $2.28 for fiscal 2026[18] - FSS International revenue grew by 17% year-over-year, driven by base business expansion and new business performance[6] - The company is focused on leveraging AI-driven technology to enhance supply chain capabilities and improve profitability[15] - The company reported unprecedented client retention levels and strong momentum in new business wins, currently outpacing its net new business target of 4% to 5% of prior year revenue[13] Adjustments and Impacts - The company recorded a charge of $6.1 million for asset impairment related to a business held-for-sale in the first quarter of 2026[35] - Adjustments for tax impact related to foreign tax credits amounted to $3.4 million for the first quarter of 2026[37] - The estimated effect of the calendar shift on Adjusted Net Income was $18,302,000, which positively influenced the financial performance[66] - The effect of currency translation on Adjusted Net Income was a decrease of $871,000, impacting the overall financial results[66] - Gains, losses, and settlements impacting comparability amounted to $13,439,000 for the quarter, compared to $11,820,000 in the previous year[66]

Industry Overview - High prices are challenging consumers, leading to cautious spending, yet the retail sector, particularly restaurants, has shown resilience amid inflationary pressures [1][5] - Restaurant sales in the U.S. reached $735.9 billion in November, marking a 0.6% increase from the previous month and a 3.3% year-over-year growth [4] Investment Opportunities - The current environment suggests investing in restaurant stocks with a strong online presence, specifically Aramark (ARMK), Brinker International, Inc. (EAT), and BJ's Restaurants, Inc. (BJRI) [2] - These selected stocks have experienced positive earnings estimate revisions in the past 60 days and are expected to deliver solid returns, with Zacks Ranks of 1 (Strong Buy) or 2 (Buy) [3] Company Insights Aramark (ARMK) - Aramark benefits from steady restaurant sales and provides food services across various sectors including healthcare and education [10] - The expected earnings growth rate for Aramark is 16.9%, with a Zacks Consensus Estimate improvement of 0.5% over the past 60 days, currently holding a Zacks Rank 2 [12] Brinker International, Inc. (EAT) - Brinker International operates restaurants under the Chili's and Maggiano's brands, with a strong presence in casual dining [13] - The expected earnings growth rate for Brinker is 18.7%, with a Zacks Consensus Estimate improvement of 3.4% over the past 60 days, currently holding a Zacks Rank 1 [14] BJ's Restaurants, Inc. (BJRI) - BJ's Restaurants operates a chain of high-end casual dining establishments, offering a diverse menu for various dining occasions [15] - The expected earnings growth rate for BJ's is 49.7%, with a Zacks Consensus Estimate improvement of 0.5% over the past 60 days, currently holding a Zacks Rank 2 [15]

Core Points - The annual meeting of Aramark was held virtually, allowing shareholders to participate and submit questions online [4] - Shareholders elected a full slate of 11 directors, ratified Deloitte & Touche as the independent auditor for fiscal 2026, and approved executive compensation in a non-binding advisory vote [5][7] - The board expressed confidence in CEO John Zillmer, stating there is no near-term succession plan and a robust pipeline of senior executives is being developed [6][12] Meeting Details - The notice of meeting and proxy statement were mailed on December 22, 2025, to shareholders of record as of December 12, 2025 [1] - As of the record date, Aramark had 262,808,032 shares of common stock outstanding, with each share entitled to one vote [2] - The polls for voting opened at 10:04 a.m. and closed at 10:05 a.m., with preliminary results confirming the election of directors and ratification of the auditor [9] Board and Leadership - The board of directors includes Susan Cameron, Greg Creed, Brian DelGhiaccio, Richard Dreiling, Bridgette Heller, Kenneth Keverian, Karen King, Patricia Lopez, Kevin Wills, John Zillmer, and Stephen Sadove [3][8] - The company continues to engage with NGOs regarding animal welfare practices and evaluates its guidelines regularly [6][14] Supply Chain and Operations - Management reported that supply chain impacts from tariffs have been managed with very little disruption, characterizing the effects as negligible on operations and financial results [6][13] - The company operates in various sectors, including education, healthcare, business, and government, providing integrated solutions to enhance guest experiences and operational efficiencies [16]