Aramark (ARMK) FY 2025 Annual General Meeting January 24, 2025 10:00 AM ET Company Participants Stephen Sadove - Non-Executive Chairman of the BoardHarold Dichter - Senior VP, Deputy General Counsel & Secretary Stephen Sadove Good morning, everyone. Welcome to the Annual Meeting of Aramark shareholders. I'm Stephen Sadoff, Chairman of the Board of Aramark. I'll serve as today's Chairman of the meeting. Assisting me with our meeting is Harold Dichter, Secretary of Aramark. We're continuing our practice of ha ...

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- ...

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]