Q1 Fiscal 2025 Earnings Results F E B R U A R Y 4 , 2 0 2 5 Q1 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, statements under the heading ...

Aramark (ARMK) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.25%. A quarter ago, it was expected that this provider of food, facilities and uniform services would post earnings of $0.54 per share when it actually produced earnings of $0.54, delivering no surprise.Over the last fou ...

Financial Performance - Operating Income increased by 30% year-over-year to $217 million, with Adjusted Operating Income (AOI) growing by 13% to $258 million[5]. - Consolidated revenue reached $4.6 billion, a 3% increase year-over-year, with Organic revenue growth of 5%[6]. - GAAP EPS rose by 264% to $0.39, while Adjusted EPS increased by 25% to $0.51[5]. - Revenue for the three months ended December 27, 2024, was $4,552,086, an increase of 3.3% compared to $4,407,765 for the same period in 2023[41]. - Adjusted operating income for the three months ended December 27, 2024, was $257,568, reflecting an 11.7% growth from $230,579 in the prior year[47]. - Adjusted net income attributable to Aramark stockholders for the three months ended December 27, 2024, was $136,934, up 25.8% from $108,802 in the same period last year[50]. - Earnings per share (EPS) for the three months ended December 27, 2024, was $0.51, representing a 23.8% increase from $0.41 in the prior year[50]. - Total revenue for Aramark and subsidiaries reached $4,552,086, with a reported growth of 3.3% compared to the previous year[62]. Acquisitions and Investments - The company completed the acquisition of Quantum Cost Consultancy Group, enhancing its Global Supply Chain spend to over $20.5 billion[12]. - Aramark initiated a $500 million share repurchase program, having repurchased over 645,000 shares for approximately $25 million[9]. Future Outlook - The company expects organic revenue growth of 9.5% and Adjusted Operating Income growth of 18% for fiscal 2025[15]. - Aramark anticipates achieving Net New business growth of 4% to 5% of prior year revenue, with retention levels above 95%[11]. - The company continues to focus on market expansion and new product development strategies to drive future growth[62]. - The company anticipates continued growth and improvement in financial performance, despite potential risks from economic conditions and geopolitical events[39]. Cash Flow and Debt Management - The company reported a cash availability of over $1.7 billion at quarter-end[9]. - The company plans to fully repay $552 million of Senior Notes due April 2025 and refinance certain term loans to 2030[13]. - Cash and cash equivalents at the end of the period were $484,149, a decrease from $672,483 at the end of the previous quarter[42]. - Net cash provided by financing activities was $642,698, compared to a net cash used of $779,003 in the same period last year[45]. - The company reported a net cash used in operating activities of $587,152, an improvement from $657,077 in the prior year[45]. Segment Performance - FSS United States revenue grew by 3% to $3.301 billion, while FSS International revenue increased by 5% to $1.251 billion[7]. - Operating income growth for FSS United States was 10.8% and for FSS International was 16.1% for the three months ended December 27, 2024[47]. - Adjusted revenue growth (organic) for FSS International was 9.8% for the three months ended December 27, 2024[47]. - Food segment revenue increased to $3,926,762, showing a growth of 4.7% compared to the same period last year[62]. - Facilities segment revenue was $625,324, with a year-over-year growth of 2.7%[62]. - FSS United States food revenue reported a growth of 4.8%, while FSS International food revenue grew by 10.0%[62]. - The total revenue for FSS International was $1,251,070, reflecting a growth of 4.7%[62]. Financial Ratios and Metrics - Interest expense, net decreased to $75,804, down 33.9% from $114,562 in the previous year[41]. - Total current liabilities decreased to $3,496,855 from $4,214,210, indicating improved liquidity[42]. - Net debt to covenant adjusted EBITDA ratio improved to 4.0 for the twelve months ended December 27, 2024, down from 4.5 in the prior year[52]. - Free cash flow for the three months ended December 27, 2024, was $(704,940), compared to $(768,278) for the same period in 2023, indicating an improvement of $63,338[60].

Core Viewpoint - The market anticipates Aramark (ARMK) will report a year-over-year increase in earnings driven by higher revenues for the quarter ending December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Aramark is expected to report quarterly earnings of $0.48 per share, reflecting a year-over-year increase of 17.1%, with revenues projected at $4.61 billion, up 4.6% from the previous year [3]. - The consensus EPS estimate has been revised 0.38% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +5.53% for Aramark, suggesting analysts are optimistic about the company's earnings prospects [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. Historical Performance - In the last reported quarter, Aramark met the expected earnings of $0.54 per share, resulting in no surprise, and has beaten consensus EPS estimates three times over the last four quarters [12][13]. Conclusion - Aramark is positioned as a compelling candidate for an earnings beat, but investors should consider other influencing factors before making investment decisions [16].

Industry Overview - The US hospitality industry is estimated to grow from $247 billion at the start of 2025 to nearly $314 billion in the next five years [1] Company Overview - Aramark is a major player in the food and facilities services sector, serving education, healthcare, business, government, and sports industries [1] - The company's stock price is $36.85 with a 52-week range of $28.30 to $42.49, a P/E ratio of 37.22, and a dividend yield of 1.14% [3] - Analysts have set a consensus price target of $42.59, representing a 16% upside potential [5] Financial Performance - Aramark's stock surged 26.6% over the past year, consistently reaching new all-time highs [4] - In Q4 fiscal 2024, the company reported adjusted EPS of $0.54, beating analyst predictions, with revenue growing 5% YoY and international sales growing 9% [12] - The company expects organic revenue growth of 7.5% to 9.5% and adjusted EPS gains of 23% to 28% in fiscal 2025 [13] Strategic Initiatives - Aramark acquired Avendra in 2017 for over $1 billion, which managed $5 billion in annual purchases and improved supply chain efficiency [6] - The company launched Avendra International in September 2024, expected to utilize $20 billion in procurement power across 15 countries [7] - Avendra International acquired Quantum Cost Consultancy Group in December 2024, which has a $500 million customer spend in European and Caribbean markets [9] Shareholder Returns - Aramark increased its quarterly dividend from $0.095 to $0.105 and launched a $500 million share repurchase program [14] Analyst Sentiment - Nine out of 11 analysts rate Aramark as a Buy, with a Moderate Buy overall rating [5][12] - The company has a 15.6% upside potential based on analyst projections [12]

I wrote about Aramark (NYSE: ARMK ) previously with a buy rating as I believed the business could continue to grow its revenue healthily, driven by organic drivers (volume and pricing), and that profit margins would recover back to historicalI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ___________________________________________ For the fiscal year ended September 27, 2024 Commission File Number: 001-36223 | --- | --- | --- | |-----------------------------------------------------|------- ...

Aramark (ARMK) reported fourth-quarter fiscal 2024 results, wherein the top and bottom lines increased year over year. However, revenues came in below the Zacks Consensus Estimate, while earnings matched the consensus mark.The solid performance was driven by increased volumes in its food, beverage and service offerings to sports and entertainment venues. In fiscal 2024, the company delivered robust financial performance, reflecting double-digit organic revenue growth, higher profitability and margin expansi ...

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- ...