Group 1 - The article does not provide any relevant content regarding the company or industry [1]

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For the quarter ended September 2025, Aramark (ARMK) reported revenue of $5.05 billion, up 14.3% over the same period last year. EPS came in at $0.64, compared to $0.54 in the year-ago quarter.The reported revenue represents a surprise of -2.11% over the Zacks Consensus Estimate of $5.16 billion. With the consensus EPS estimate being $0.65, the EPS surprise was -1.54%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Wolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets. He is a contributing author and analyst for the investing group iREIT®+HOYA Capital and Wide Moat Research LLC where in addition to the U.S. market, he covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas. Learn moreAnalyst’s Disclosure:I/we have a beneficial long position in ...

Core Insights - The article discusses the expertise of a senior analyst and private portfolio manager with over 10 years of experience in generating value ideas in European and North American markets [1] Group 1: Analyst Background - The analyst is a contributing author and analyst for the investing group iREIT®+HOYA Capital and Wide Moat Research LLC, covering various European markets including Scandinavia, Germany, France, UK, Italy, Spain, Portugal, and Eastern Europe [1] Group 2: Investment Focus - The analyst focuses on identifying reasonably valued stock ideas within the mentioned markets, indicating a strategic approach to investment opportunities [1]

Financial Data and Key Metrics Changes - For fiscal 2025, the company reported revenue of $18.5 billion, a 6% increase compared to the prior year, with organic revenue growth of 7% [16][20] - Adjusted operating income for the fourth quarter was $289 million, growing 6% on a constant currency basis, while full-year adjusted operating income was $981 million, up 12% [17][18] - The adjusted EPS for the fourth quarter was $0.57, a 6% increase, and for the full year, it was $1.82, reflecting almost a 20% increase [20][21] - The consolidated leverage ratio improved to 3.25 times, the lowest level in nearly 20 years, down from 3.4 times a year ago [21][22] Business Line Data and Key Metrics Changes - The U.S. segment reported organic revenue growth of 14% in the fourth quarter, driven by new business and base business growth [8][16] - The international segment also experienced consistent double-digit organic revenue growth of 14% in the fourth quarter, with strong contributions from various geographic regions [12][19] - The healthcare segment reported its best performance in over two years, with significant new business wins contributing to growth [9][11] Market Data and Key Metrics Changes - The company achieved an industry-leading client retention rate of 96.3%, contributing to a net new business growth of 5.6% [6][7] - The collegiate sports business experienced double-digit revenue growth, with per capita rates up 14% year over year [9][10] - The supply chain GPO network added over $1 billion in new purchasing spend for the second consecutive year, indicating strong market demand [7][13] Company Strategy and Development Direction - The company is focused on delivering exceptional hospitality services and is committed to creating significant value for shareholders [25][24] - There is a strong emphasis on leveraging technology and operational efficiencies to drive profitability and growth [14][19] - The company plans to maintain a growth agenda focused on culture, team capabilities, and process improvements [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve net new business growth of 4-5% of prior year revenue, with retention levels exceeding 95% in fiscal 2026 and beyond [7][23] - The company anticipates organic revenue for fiscal 2026 to be between $19.45 billion and $19.85 billion, representing growth of 7%-9% [22][23] - Management acknowledged the impact of inflation, estimating it around 3% heading into the new fiscal year, while emphasizing effective management of the macro environment [14][21] Other Important Information - The company is expanding its enterprise-wide capabilities and has secured significant contracts, including a multi-year agreement with the University of Pennsylvania Health System [10][11] - The company is actively pursuing new opportunities in various sectors, including healthcare and corrections, indicating a robust pipeline for future growth [51][66] Q&A Session Summary Question: Can you delve into the shift in timing for new account openings? - Management indicated that the shift occurred across multiple businesses, including corrections and healthcare, and was client-driven rather than company-driven [30][31] Question: What is the implication of the Penn Medicine deal for future hospital groups? - Management believes there are significant new opportunities for self-op conversion in healthcare, with the Penn deal serving as a model for other institutions [51][52] Question: Can you discuss the organic revenue drivers for fiscal 2025 and 2026? - For fiscal 2025, base business growth was approximately 3.5%, with net new contributions around 1.5%, while for fiscal 2026, expected base business growth is 3-4% [56][57] Question: What are the factors behind the restructuring in the international business? - The restructuring is aimed at streamlining SG&A and optimizing operations, particularly in Europe and South America, despite the segment's healthy growth [75][76] Question: How does the company view retention rates moving forward? - Management aims to maintain a retention rate above 95%, with aspirations to achieve even higher levels, reflecting a commitment to continuous improvement [100][101]

Financial Data and Key Metrics Changes - For fiscal 2025, the company reported revenue of $18.5 billion, a 6% increase compared to the prior year, with organic revenue growth of 7% [16][20] - Adjusted operating income for the fourth quarter was $289 million, growing 6% on a constant currency basis, while full-year adjusted operating income was $981 million, up 12% [17][18] - The adjusted EPS for the fourth quarter was $0.57, a 6% increase, and for the full year, it was $1.82, reflecting almost 20% growth [20][21] - The consolidated leverage ratio improved to 3.25 times, the lowest level in nearly 20 years, down from 3.4 times a year ago [21][22] Business Line Data and Key Metrics Changes - The FSS US segment grew organic revenue by 14% in the fourth quarter, driven by workplace experience and collegiate hospitality [8][16] - The international segment also reported consistent double-digit organic revenue growth of 14% in the fourth quarter, with strong contributions from the U.K., Canada, and Latin America [12][13] - The healthcare segment achieved its best performance in over two years, with significant new business wins contributing to growth [9][10] Market Data and Key Metrics Changes - The company experienced an industry-leading client retention rate of 96.3%, contributing to a net new business growth of 5.6% [6][7] - The collegiate sports business saw double-digit revenue growth, with per capita rates up 14% year over year [9][10] - The global supply chain added over $1 billion in new purchasing spend for the second consecutive year, primarily from various sectors including healthcare and education [13][14] Company Strategy and Development Direction - The company is focused on delivering exceptional hospitality services and maintaining high client retention rates, with a goal of achieving net new business growth of 4-5% in fiscal 2026 [7][23] - Strategic investments are being made in advanced technologies to enhance operational efficiencies and client service capabilities [19][22] - The company aims to leverage its strong new business pipeline and expand its presence in various sectors, including healthcare and collegiate sports [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong new business wins and high retention rates as key drivers for future performance [4][25] - The company anticipates organic revenue growth of $19.45 billion to $19.85 billion for fiscal 2026, representing a growth of 7%-9% [22][23] - Management acknowledged the impact of inflation, estimating it around 3% as they continue to manage the macro environment effectively [14][21] Other Important Information - The company has taken decisive actions to reduce future medical expenses related to elective lifestyle prescriptions, which are expected to positively impact costs going forward [18][19] - The company is committed to optimizing capital allocation priorities, including increasing dividends and stock repurchases [22][23] Q&A Session Summary Question: Can you delve into the shift in timing for new account openings? - Management indicated that the shift occurred across multiple businesses, including corrections and healthcare, and was client-driven rather than company-driven [30][31] Question: What is the expected cadence for the UPenn contract in 2026? - The UPenn contract will begin operations in February and will be staged over several months, with expectations for significant new business contributions throughout the year [32][33] Question: Can you discuss the margin trajectory with new wins? - Management noted that while there may be some incremental startup costs associated with new contracts, these will be offset by productivity improvements and efficiency initiatives [37][41] Question: What is the outlook for retention rates moving forward? - Management expressed a strong commitment to maintaining a retention rate above 95%, with aspirations to achieve even higher levels [99][101] Question: Can you elaborate on the restructuring measures in the international business? - The restructuring is aimed at streamlining SG&A and optimizing operations, despite the international segment's strong growth performance [75][76]

Aramark (NYSE:ARMK) Q4 2025 Earnings Call November 17, 2025 08:30 AM ET Speaker0Good morning and welcome to Aramark's fourth quarter and full year fiscal 2025 earnings results conference call. My name is Kevin, and I'll be your operator for today's call. At this time, I'd like to inform you that this conference is being recorded for rebroadcast and that all participants are in a listen-only mode. We will open the conference call for questions at the conclusion of the company's remarks. I will now turn the c ...

Core Insights - Aramark reported quarterly earnings of $0.64 per share, slightly missing the Zacks Consensus Estimate of $0.65 per share, but showing an increase from $0.54 per share a year ago, resulting in an earnings surprise of -1.54% [1] - The company posted revenues of $5.05 billion for the quarter ended September 2025, which was 2.11% below the Zacks Consensus Estimate, and an increase from $4.42 billion year-over-year [2] - Aramark's stock has underperformed the market, gaining about 1.9% year-to-date compared to the S&P 500's gain of 14.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $4.9 billion, and for the current fiscal year, it is $2.25 on revenues of $19.58 billion [7] - The trend of estimate revisions for Aramark was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Business - Services industry, to which Aramark belongs, is currently in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, ABM Industries, is expected to report quarterly earnings of $1.10 per share, reflecting a year-over-year increase of 22.2%, with revenues projected at $2.27 billion, up 4.4% from the previous year [9]

Full Year and Q4 Fiscal 2025 Earnings Results N O V E M B E R 1 7 , 2 0 2 5 Fiscal 2025 Earnings Results 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, statemen ...