FORM 10-Q Filing Information Aramark's Quarterly Report on Form 10-Q for June 27, 2025, outlines its filing status and outstanding common stock - Aramark (Commission File Number: 001-36223) filed its Quarterly Report on Form 10-Q for the period ended June 27, 2025, as a large accelerated filer, not a shell company[2](index=2&type=chunk)[4](index=4&type=chunk) | Title of Each Class | Trading Symbol(s) | Name of Each Exchange on which Registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock, par value $0.01 per share | ARMK | New York Stock Exchange | - As of July 25, 2025, **262,850,908** shares of common stock were outstanding[4](index=4&type=chunk) [PART I - Financial Information](index=3&type=section&id=PART%20I%20-%20Financial%20Information) This section presents Aramark's unaudited financial statements and notes, covering accounting policies, assets, liabilities, and performance [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Aramark's unaudited condensed consolidated financial statements, including balance sheets, income, cash flows, and equity, are presented with notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details Aramark's financial position, presenting assets, liabilities, and stockholders' equity at specific dates | ASSETS (in thousands) | June 27, 2025 | September 27, 2024 | | :-------------------- | :------------ | :----------------- | | Cash and cash equivalents | $501,485 | $672,483 | | Receivables, net | $2,357,475 | $2,096,928 | | Total current assets | $3,528,537 | $3,406,562 | | Property and Equipment, net | $1,702,075 | $1,573,193 | | Goodwill | $4,852,720 | $4,677,201 | | Other Intangible Assets | $1,899,911 | $1,804,602 | | Total Assets | $13,283,678 | $12,674,371 | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | June 27, 2025 | September 27, 2024 | | :------------------------------------ | :------------ | :----------------- | | Current maturities of long-term borrowings | $41,113 | $964,286 | | Accounts payable | $1,137,859 | $1,394,007 | | Total current liabilities | $2,737,997 | $4,214,210 | | Long-Term Borrowings | $6,253,834 | $4,307,171 | | Total stockholders' equity | $3,084,131 | $3,038,974 | | Total Liabilities and Stockholders' Equity | $13,283,678 | $12,674,371 | - Total assets increased by **$609.3 million (4.8%)** from September 27, 2024, to June 27, 2025, primarily driven by increases in receivables, property and equipment, goodwill, and other intangible assets[13](index=13&type=chunk) - Total liabilities decreased by **$1,476.2 million (14.7%)** due to a significant reduction in current maturities of long-term borrowings, partially offset by an increase in long-term borrowings[13](index=13&type=chunk) - Stockholders' equity increased by **$45.1 million (1.5%)**[13](index=13&type=chunk) [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section presents Aramark's consolidated income statements, detailing revenue, operating income, net income, and earnings per share | (in thousands, except per share data) | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Revenue | $4,626,451 | $4,376,076 | $13,457,835 | $12,983,754 | | Operating income | $182,587 | $161,679 | $574,026 | $487,715 | | Net income attributable to Aramark stockholders | $71,783 | $58,126 | $239,256 | $140,111 | | Basic Earnings per share | $0.27 | $0.22 | $0.91 | $0.53 | | Diluted Earnings per share | $0.27 | $0.22 | $0.90 | $0.53 | - For the three months ended June 27, 2025, revenue increased by **5.7% YoY**, operating income increased by **12.9% YoY**, and net income attributable to Aramark stockholders increased by **23.5% YoY**[15](index=15&type=chunk) - Basic and diluted EPS both increased by **$0.05 YoY**[15](index=15&type=chunk) - For the nine months ended June 27, 2025, revenue increased by **3.7% YoY**, operating income increased by **17.7% YoY**, and net income attributable to Aramark stockholders increased by **70.8% YoY**[15](index=15&type=chunk) - Basic and diluted EPS both increased by **$0.38 YoY**[15](index=15&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents Aramark's consolidated statements of comprehensive income, including net income and other comprehensive income (loss) | (in thousands) | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income | $71,952 | $58,121 | $239,628 | $139,640 | | Other comprehensive income (loss), net of tax | $14,636 | $(4,618) | $(19,260) | $(38,043) | | Comprehensive income attributable to Aramark stockholders | $86,419 | $53,508 | $219,996 | $102,068 | - Comprehensive income attributable to Aramark stockholders significantly increased for both the three-month period (**61.5% YoY**) and nine-month period (**115.5% YoY**) ended June 27, 2025, primarily driven by higher net income and a positive shift in other comprehensive income (loss) from foreign currency translation adjustments[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details Aramark's cash flow activities, categorizing them into operating, investing, and financing sections | (in thousands) | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :------------- | :------------------------------ | :------------------------------ | | Net cash used in operating activities | $(254,527) | $(295,101) | | Net cash used in investing activities | $(614,178) | $(379,404) | | Net cash provided by (used in) financing activities | $679,377 | $(800,564) | | Decrease in cash and cash equivalents and restricted cash | $(174,909) | $(1,476,838) | | Cash and cash equivalents and restricted cash, end of period | $557,704 | $495,529 | - Net cash used in operating activities decreased by **$40.6 million**, indicating improved operational cash management[20](index=20&type=chunk) - Net cash used in investing activities increased by **$234.8 million**, primarily due to higher acquisitions and property/equipment purchases[20](index=20&type=chunk) - A significant shift occurred in financing activities, moving from a net cash usage of **$800.6 million** in the prior year to a net cash provision of **$679.4 million**, driven by new borrowings and a receivables facility[20](index=20&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk)[154](index=154&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in Aramark's stockholders' equity, including common stock, capital surplus, retained earnings, and treasury stock | (in thousands) | Balance, September 27, 2024 | Balance, June 27, 2025 | | :------------- | :-------------------------- | :--------------------- | | Total Stockholders' Equity | $3,038,974 | $3,084,131 | | Common Stock | $3,043 | $3,078 | | Capital Surplus | $3,931,932 | $4,014,513 | | Retained Earnings | $239,709 | $393,744 | | Accumulated Other Comprehensive Loss | $(132,457) | $(151,717) | | Treasury Stock | $(1,003,253) | $(1,175,487) | - Total stockholders' equity increased by **$45.1 million** from September 27, 2024, to June 27, 2025[23](index=23&type=chunk) - This was primarily driven by net income attributable to Aramark stockholders (**$239.3 million**) and capital contributions from common stock issuance, partially offset by dividends declared (**$83.2 million**) and repurchases of common stock (**$140.2 million**)[23](index=23&type=chunk)[99](index=99&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of Aramark's significant accounting policies and financial statement items [NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=12&type=section&id=NOTE%201.%20BASIS%20OF%20PRESENTATION%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - Aramark is a global provider of food and facilities services, operating in two reportable segments: FSS United States and FSS International[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - The condensed consolidated financial statements are prepared in accordance with U.S. GAAP and include all adjustments for fair presentation[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - New accounting standards updates (ASU 2024-03, ASU 2023-09, ASU 2023-07) are being assessed for impact, with ASU 2023-07 on Segment Reporting expected to be adopted retrospectively for fiscal 2025 annual disclosures[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - Comprehensive income includes net income, foreign currency translation adjustments, and changes in the fair value of cash flow hedges[34](index=34&type=chunk)[37](index=37&type=chunk) - Accumulated other comprehensive loss primarily consists of foreign currency translation adjustments and cash flow hedges[34](index=34&type=chunk)[37](index=37&type=chunk) - The company completed the separation and distribution of its Uniform segment (Vestis) on September 30, 2023, as a tax-free spin-off[49](index=49&type=chunk)[54](index=54&type=chunk) - Related transaction fees of **$20.0 million** and charitable contribution expense of **$8.8 million** were incurred in the nine months ended June 28, 2024[49](index=49&type=chunk)[54](index=54&type=chunk) [NOTE 2. GOODWILL AND OTHER INTANGIBLE ASSETS](index=15&type=section&id=NOTE%202.%20GOODWILL%20AND%20OTHER%20INTANGIBLE%20ASSETS) | Segment (in thousands) | September 27, 2024 | Acquisitions | Translation | June 27, 2025 | | :--------------------- | :----------------- | :----------- | :---------- | :------------ | | FSS United States | $4,184,547 | $45,375 | $(34) | $4,229,888 | | FSS International | $492,654 | $111,477 | $18,701 | $622,832 | | Total Goodwill | $4,677,201 | $156,852 | $18,667 | $4,852,720 | | Other Intangible Assets (in thousands) | June 27, 2025 Net Amount | September 27, 2024 Net Amount | | :------------------------------------- | :----------------------- | :---------------------------- | | Customer relationship assets | $692,016 | $647,006 | | Trade names | $1,207,895 | $1,157,596 | | Total Other Intangible Assets | $1,899,911 | $1,804,602 | - Goodwill increased by **$175.5 million** during the nine months ended June 27, 2025, primarily due to acquisitions (**$156.9 million**) and foreign currency translation (**$18.7 million**)[57](index=57&type=chunk)[59](index=59&type=chunk) - Amortization of intangible assets for the nine months ended June 27, 2025, was **$90.6 million**, up from **$78.8 million** in the prior year[57](index=57&type=chunk)[59](index=59&type=chunk) [NOTE 3. BORROWINGS](index=16&type=section&id=NOTE%203.%20BORROWINGS) | Long-term borrowings, net (in thousands) | June 27, 2025 | September 27, 2024 | | :------------------------------------- | :------------ | :----------------- | | Senior Secured Credit Facility | $4,358,160 | $3,199,372 | | Senior Unsecured Notes | $1,609,287 | $2,057,593 | | Receivables Facility | $570,000 | — | | Total Long-Term Borrowings, net | $6,253,834 | $4,307,171 | - Long-term borrowings, net, increased by **$1,946.7 million** from September 27, 2024, to June 27, 2025[60](index=60&type=chunk) - This was primarily due to the issuance of **€400.0 million** 4.375% Senior Unsecured Notes due April 2033 and new U.S. Term B-8 Loans due 2030 (**$1,395.0 million**), used to repay existing notes and term loans[60](index=60&type=chunk)[63](index=63&type=chunk)[70](index=70&type=chunk) - As of June 27, 2025, the company had **$906.5 million** availability under its revolving credit facility and **$30.0 million** under the Receivables Facility[61](index=61&type=chunk) [NOTE 4. DERIVATIVE INSTRUMENTS](index=19&type=section&id=NOTE%204.%20DERIVATIVE%20INSTRUMENTS) - Aramark uses interest rate swap agreements to manage interest rate risk on debt obligations, with **$2.4 billion** notional amount outstanding as of June 27, 2025[80](index=80&type=chunk)[81](index=81&type=chunk) - During the nine months ended June 27, 2025, **$800.0 million** in swaps matured, and **$900.0 million** in new swaps were initiated[80](index=80&type=chunk)[81](index=81&type=chunk) | (in thousands) | June 27, 2025 | September 27, 2024 | | :------------- | :------------ | :----------------- | | Unrealized net of tax gains related to interest rate swaps in Accumulated other comprehensive loss | $19,700 | $36,500 | - The company expects a net of tax gain of approximately **$17.0 million** to be reclassified from accumulated other comprehensive loss into earnings over the next twelve months from interest rate swaps[86](index=86&type=chunk) [NOTE 5. REVENUE RECOGNITION](index=20&type=section&id=NOTE%205.%20REVENUE%20RECOGNITION) - Aramark recognizes revenue from food and facility services based on written contracts, with performance obligations generally satisfied over time[87](index=87&type=chunk)[89](index=89&type=chunk) - The company uses the right to invoice practical expedient to recognize revenue as services are provided[87](index=87&type=chunk)[89](index=89&type=chunk) | Revenue by Segment (in millions) | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | FSS United States | $3,247.2 | $3,144.5 | $9,604.6 | $9,400.7 | | FSS International | $1,379.2 | $1,231.6 | $3,853.2 | $3,583.1 | | Total Revenue | $4,626.4 | $4,376.1 | $13,457.8 | $12,983.8 | - Deferred income, primarily from prepaid meal plans, decreased from **$352.5 million** at September 27, 2024, to **$134.3 million** at June 27, 2025[91](index=91&type=chunk)[92](index=92&type=chunk) - For the nine months ended June 27, 2025, **$311.5 million** of revenue was recognized from deferred income[91](index=91&type=chunk)[92](index=92&type=chunk) [NOTE 6. INCOME TAXES](index=22&type=section&id=NOTE%206.%20INCOME%20TAXES) - For the three and nine months ended June 27, 2025, Aramark recorded a **$3.1 million** income tax benefit from the reversal of a valuation allowance against deferred tax assets in a foreign subsidiary due to an acquisition[94](index=94&type=chunk) - The company expects to meet safe harbor requirements for Pillar Two Global Anti-Base Erosion Model Rules (minimum **15.0%** effective tax rate) for fiscal years 2025-2027, with no material impact on current or future financial statements[96](index=96&type=chunk) - The recently signed One Big Beautiful Bill (OBBB) Act, effective in fiscal year 2025 and future periods, is currently being assessed for its impact on consolidated financial statements[97](index=97&type=chunk) [NOTE 7. STOCKHOLDERS' EQUITY](index=22&type=section&id=NOTE%207.%20STOCKHOLDERS'%20EQUITY) - A dividend of **$0.105 per share** of common stock was declared on July 22, 2025, payable on August 20, 2025[98](index=98&type=chunk) - The Board of Directors approved a **$500.0 million** share repurchase program on November 5, 2024[99](index=99&type=chunk) - During the nine months ended June 27, 2025, the company repurchased **4.0 million shares** for **$140.2 million**[99](index=99&type=chunk) [NOTE 8. EARNINGS PER SHARE](index=22&type=section&id=NOTE%208.%20EARNINGS%20PER%20SHARE) | (in thousands, except per share data) | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income attributable to Aramark stockholders | $71,783 | $58,126 | $239,256 | $140,111 | | Basic weighted-average shares outstanding | 262,660 | 263,390 | 264,118 | 262,761 | | Diluted weighted-average shares outstanding | 265,347 | 266,577 | 267,180 | 265,387 | | Basic Earnings Per Share | $0.27 | $0.22 | $0.91 | $0.53 | | Diluted Earnings Per Share | $0.27 | $0.22 | $0.90 | $0.53 | - Basic and diluted EPS increased significantly for both the three-month and nine-month periods ended June 27, 2025, reflecting higher net income[103](index=103&type=chunk)[104](index=104&type=chunk) - Share-based awards and performance stock units were excluded from diluted EPS computation if antidilutive or performance targets were not met[103](index=103&type=chunk)[104](index=104&type=chunk) [NOTE 9. COMMITMENTS AND CONTINGENCIES](index=23&type=section&id=NOTE%209.%20COMMITMENTS%20AND%20CONTINGENCIES) - Aramark is involved in various legal actions and investigations incidental to its business, but does not believe any are likely to be individually or in aggregate material to its financial condition[105](index=105&type=chunk) - A putative class action lawsuit was filed against Vestis (former Uniform segment) and certain officers, later amended to include Aramark and its CEO as defendants, alleging false or misleading statements related to Vestis' business and financial results[106](index=106&type=chunk) - Aramark intends to vigorously defend this matter[106](index=106&type=chunk) [NOTE 10. BUSINESS SEGMENTS](index=24&type=section&id=NOTE%2010.%20BUSINESS%20SEGMENTS) - Aramark operates in two reportable segments: Food and Support Services United States (FSS United States) and Food and Support Services International (FSS International)[108](index=108&type=chunk) - Approximately **84%** of global revenue is from food services and **16%** from facilities services[108](index=108&type=chunk) | Revenue by Segment (in millions) | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | FSS United States | $3,247.2 | $3,144.5 | $9,604.6 | $9,400.7 | | FSS International | $1,379.2 | $1,231.6 | $3,853.2 | $3,583.1 | | Total Revenue | $4,626.4 | $4,376.1 | $13,457.8 | $12,983.8 | | Operating Income by Segment (in millions) | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :---------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | FSS United States | $160.0 | $140.1 | $505.4 | $459.2 | | FSS International | $49.1 | $52.3 | $154.3 | $141.1 | | Corporate | $(26.5) | $(30.7) | $(85.7) | $(112.6) | | Total Operating Income | $182.6 | $161.7 | $574.0 | $487.7 | [NOTE 11. FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES](index=24&type=section&id=NOTE%2011.%20FAIR%20VALUE%20OF%20FINANCIAL%20ASSETS%20AND%20FINANCIAL%20LIABILITIES) - Fair value measurements are classified into Level 1 (quoted prices in active markets), Level 2 (observable inputs for similar assets/liabilities), and Level 3 (unobservable inputs)[112](index=112&type=chunk)[113](index=113&type=chunk) - The fair value of the company's debt was **$6,325.2 million** at June 27, 2025, and **$5,300.7 million** at September 27, 2024, with inputs classified as Level 2[112](index=112&type=chunk)[113](index=113&type=chunk) - The contingent consideration liability from the Union Supply acquisition was fully paid out in the second quarter of fiscal 2025, resulting in a zero balance at June 27, 2025[115](index=115&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Aramark's financial condition and results, covering business overview, macroeconomic factors, segment performance, liquidity, and capital resources [Overview](index=26&type=section&id=Overview) Aramark is a leading global provider of food and facilities services, operating in FSS United States and FSS International - Aramark is a leading global provider of food and facilities services across education, healthcare, business & industry, and sports, leisure & corrections sectors[120](index=120&type=chunk)[121](index=121&type=chunk) - Operations are divided into FSS United States and FSS International segments[120](index=120&type=chunk)[121](index=121&type=chunk) [Current Business Environment](index=26&type=section&id=Current%20Business%20Environment) The company observed moderation in global inflationary costs and market interest rates, while managing foreign currency volatility - The company observed moderation in global inflationary costs (product, energy, labor) and market interest rates, but continued foreign currency volatility[122](index=122&type=chunk) - Actions are taken to mitigate risks, including supply chain initiatives, pricing adjustments, and interest rate swaps[122](index=122&type=chunk) [Seasonality](index=26&type=section&id=Seasonality) Revenue and operating results vary quarterly due to seasonality, with distinct patterns in FSS United States and cash flows - Revenue and operating results vary quarterly due to seasonality[123](index=123&type=chunk) - FSS United States experiences lower activity in sports and leisure during the first half of the fiscal year, offset by education, with the reverse in the second half[123](index=123&type=chunk) - Cash usage is typical in the first fiscal quarter, with inflows in the fourth quarter[123](index=123&type=chunk) [Foreign Currency Fluctuations](index=27&type=section&id=Foreign%20Currency%20Fluctuations) The impact of foreign currency translation is calculated assuming constant exchange rates for period-to-period comparisons - The impact of foreign currency translation is calculated assuming constant exchange rates from the prior year to facilitate period-to-period performance comparisons[124](index=124&type=chunk) [Fiscal Year](index=27&type=section&id=Fiscal%20Year) Aramark's fiscal year is a 52- or 53-week period ending on the Friday nearest September 30th - Aramark's fiscal year is a 52- or 53-week period ending on the Friday nearest September 30th[125](index=125&type=chunk) - Fiscal year 2025 is a 53-week period, while fiscal year 2024 was 52 weeks[125](index=125&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) This section analyzes Aramark's consolidated and segment-level financial performance, including revenue, operating income, and expenses - Consolidated revenue increased by **5.7%** for the three months and **3.7%** for the nine months ended June 27, 2025, driven by base business growth and additional operating days, partially offset by the exit of lower-margin accounts[129](index=129&type=chunk) | Cost of services provided (exclusive of depreciation and amortization) as % of Revenue | | :---------------------------------------------------------------------------------- | | **Three Months Ended** | | June 27, 2025: 92.0% | | June 28, 2024: 92.3% | | **Nine Months Ended** | | June 27, 2025: 91.6% | | June 28, 2024: 92.1% | - Operating income increased by **$20.9 million (12.9%)** for the three months and **$86.3 million (17.7%)** for the nine months ended June 27, 2025, primarily due to base business growth and supply chain efficiencies, partially offset by higher medical claims and severance charges[133](index=133&type=chunk) - Interest Expense, net, increased by **6.0%** for the three-month period due to new interest rate swap agreements at higher rates[134](index=134&type=chunk)[135](index=135&type=chunk) - Interest Expense, net, decreased by **10.8%** for the nine-month period due to prior year call premiums and write-offs related to debt repayments[134](index=134&type=chunk)[135](index=135&type=chunk) - FSS United States revenue increased by **3.3%** (three months) and **2.2%** (nine months), driven by volume growth in Business & Industry, additional operating days in Education, and net new business in Sports, Leisure & Corrections[140](index=140&type=chunk)[142](index=142&type=chunk) - FSS International revenue increased by **12.0%** (three months) and **7.5%** (nine months) due to base business growth and net new business, with foreign currency translation having a favorable impact in the three-month period and a negative impact in the nine-month period[140](index=140&type=chunk)[142](index=142&type=chunk) - Corporate expenses decreased by **$4.2 million** (three months) and **$26.9 million** (nine months), mainly due to lower share-based compensation expense and prior year expenses related to the Uniform segment separation[144](index=144&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses Aramark's cash position, debt activities, and compliance with debt covenants, outlining its financial flexibility - As of June 27, 2025, Aramark had **$501.5 million** in cash and cash equivalents, **$43.7 million** in marketable securities, **$906.5 million** available under its revolving credit facility, and **$30.0 million** under its Receivables Facility[145](index=145&type=chunk) - Recent debt activities include issuing **€400.0 million** of 4.375% Senior Notes due April 2033 and **$1,395.0 million** of New U.S. Term B-8 Loans due 2030, used to repay existing debt and for general corporate purposes[146](index=146&type=chunk)[147](index=147&type=chunk) | Cash Activity (in millions) | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :-------------------------- | :------------------------------ | :------------------------------ | | Net cash used in operating activities | $(254.5) | $(295.1) | | Net cash used in investing activities | $(614.2) | $(379.4) | | Net cash provided by (used in) financing activities | $679.4 | $(800.6) | - Cash provided by financing activities significantly increased in fiscal 2025 due to new borrowings (U.S. Term B-8 Loans, 4.375% 2033 Notes, Receivables Facility, revolving credit facility), partially offset by debt repayments and common stock repurchases[154](index=154&type=chunk)[162](index=162&type=chunk) - Aramark was in compliance with all debt covenants as of June 27, 2025[157](index=157&type=chunk)[165](index=165&type=chunk) - The Consolidated Secured Debt Ratio was **2.96x** (covenant ≤ **5.125x**) and the Interest Coverage Ratio was **3.98x** (covenant ≥ **2.000x**)[157](index=157&type=chunk)[165](index=165&type=chunk) [Critical Accounting Estimates](index=34&type=section&id=Critical%20Accounting%20Estimates) Management's discussion of critical accounting estimates refers to the Annual Report on Form 10-K, highlighting subjective judgments - Management's discussion of critical accounting estimates refers to the Annual Report on Form 10-K filed on November 19, 2024, emphasizing the subjectivity and judgment involved in estimates that can materially impact financial statements[170](index=170&type=chunk)[171](index=171&type=chunk) [New Accounting Standard Updates](index=35&type=section&id=New%20Accounting%20Standard%20Updates) A full description of recent accounting standard updates and their expected adoption dates is provided in Note 1 - A full description of recent accounting standard updates and their expected adoption dates is provided in Note 1 to the condensed consolidated financial statements[173](index=173&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) Aramark manages interest rate risk through debt and interest rate swaps, with recent transactions impacting its market risk profile - The market risk associated with debt obligations as of June 27, 2025, has not materially changed from September 27, 2024, despite several debt-related transactions[174](index=174&type=chunk) - Key transactions impacting market risk include the repayment of **$839.3 million** U.S. Term B-4 Loans and **$551.5 million** 5.000% 2025 Notes, the syndication of **$1,395.0 million** New U.S. Term B-8 Loans due 2030, and the issuance of **€400.0 million** 4.375% 2033 Notes[174](index=174&type=chunk) - During the nine months ended June 27, 2025, **$800.0 million** notional amount of interest rate swaps matured, and **$900.0 million** notional amount of new interest rate swaps were entered into[174](index=174&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated Aramark's disclosure controls and procedures as effective, with no material changes to internal control over financial reporting - Disclosure controls and procedures were evaluated and deemed effective as of June 27, 2025, ensuring timely and accurate reporting of information required under the Securities Exchange Act of 1934[175](index=175&type=chunk) - No material changes in internal control over financial reporting occurred during the third quarter of fiscal 2025[175](index=175&type=chunk) [PART II - Other Information](index=36&type=section&id=PART%20II%20-%20Other%20Information) This section provides additional information beyond financial statements, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) Aramark is involved in various legal actions and investigations, which are not expected to be individually or in aggregate material to its financial condition - Aramark is party to various legal actions and investigations, including claims related to employment, wage and hour, discrimination, environmental, and consumer protection laws[177](index=177&type=chunk) - Based on current information and counsel's advice, the company does not believe these legal matters are likely to be individually or in aggregate material to its business, financial condition, results of operations, or cash flows[177](index=177&type=chunk) - The company is subject to federal, state, and local environmental laws and regulations, with related remediation costs not expected to have a material adverse effect[178](index=178&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in Aramark's Annual Report on Form 10-K for fiscal year ended September 27, 2024 - No material changes to the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended September 27, 2024[180](index=180&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Aramark engaged in share repurchase activity during the three months ended June 27, 2025, under a $500.0 million program | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in thousands) | | :------------------------------- | :----------------------------- | :--------------------------- | :----------------------------------------------------------------------------- | :--------------------------------------------------------------------------------------------------- | | March 29, 2025 to April 25, 2025 | 893,100 | $31.38 | 893,100 | $359,844 | | April 26, 2025 to May 23, 2025 | — | — | — | $359,844 | | May 24, 2025 to June 27, 2025 | — | — | — | $359,844 | | Total | 893,100 | | 893,100 | | - The share repurchase program, authorized for up to **$500.0 million**, does not have a fixed expiration date[181](index=181&type=chunk) [Item 3. Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Aramark reported no defaults upon senior securities during the period - There were no defaults upon senior securities[182](index=182&type=chunk) [Item 4. Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Aramark reported no mine safety disclosures for the period - There were no mine safety disclosures[183](index=183&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 27, 2025 - No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 27, 2025[184](index=184&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including CEO/CFO certifications and inline XBRL financial information - Exhibits include certifications from the CEO and CFO (31.1, 31.2, 32.1) and financial information in inline XBRL format (101, 104)[190](index=190&type=chunk)[193](index=193&type=chunk)

Financial Data and Key Metrics Changes - The company reported record revenue of $4.6 billion for the third quarter, representing a 6% increase, with organic revenue growth exceeding 5% driven by base business growth and new client contributions [6][20] - Adjusted EPS grew nearly 30% year-over-year, with GAAP EPS reported at $0.27 and adjusted EPS at $0.40 [20][24] - Operating income increased to $183 million, up 13% compared to the prior year, while adjusted operating income rose to $230 million, reflecting a 19% increase [16][17] Business Segment Data and Key Metrics Changes - FSS US organic revenue increased to $3.2 billion, up over 3%, driven by strong performance in workplace experience, education, and sports and entertainment [7][10] - The international segment achieved double-digit organic revenue growth of 10%, totaling $1.4 billion, with growth across all geographies, particularly in the UK, Chile, Canada, and Spain [10][11] - The B&I segment saw a 17% growth in Q3, attributed to new business and elevated retention rates [96] Market Data and Key Metrics Changes - The company maintained a client retention rate exceeding 97% in both FSS US and international segments [5][22] - Major League Baseball attendance and per capita spending were reported to be strong, contributing positively to revenue [80] Company Strategy and Development Direction - The company is focused on organic growth, with a strong emphasis on client retention and new business wins, particularly in the education and sports sectors [49][104] - Strategic partnerships and leveraging synergies across business lines are key to unlocking additional revenue growth [8][9] - The company is also investing in AI-driven technology to enhance supply chain capabilities and operational efficiency [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving guidance for the fourth quarter, citing strong business momentum and a robust sales pipeline [29][72] - The company is effectively managing the current tariff environment and believes its business model is insulated from market volatility [13][23] - Management highlighted the importance of proactive client engagement and service quality in maintaining high retention rates [50][104] Other Important Information - The company repaid approximately $62 million of term loan B and repurchased about $31 million of its common stock during the quarter [21][22] - The company has over $1.4 billion in cash availability at quarter-end, positioning it well for future investments and shareholder returns [22] Q&A Session Summary Question: Can you provide perspective on revenue acceleration expected in Q4? - Management indicated a strong start to Q4 and confidence in achieving projected guidance, with significant new contract wins expected to contribute to revenue growth [29][30] Question: What happened in the events business? - Management noted lower concert activity and renovations at certain venues impacted revenue, but this was not expected to have a long-term effect [32][33] Question: Can you comment on the ACE contract and potential equity investment? - Management confirmed a small equity investment in the A's franchise, emphasizing that this is not a typical approach but reflects a strong partnership [41][42] Question: How did the education selling season play out? - Management reported a successful selling season in education, with strong retention and new business results [48][49] Question: What is the outlook for margins with new business openings? - Management indicated that margins typically ramp up over three years for new business, with potential temporary drag in the first year [99] Question: How is the competitive landscape in education? - Management highlighted strong performance and market share gains in education, attributing success to leadership and focus [104][105]

Financial Data and Key Metrics Changes - Aramark reported record revenue of $4.6 billion for the third quarter, representing a 6% increase, with organic revenue growth exceeding 5% driven by base business growth and new client contributions [6][21] - Adjusted EPS grew nearly 30% year-over-year, with GAAP EPS at $0.27 and adjusted EPS at $0.40 [21][22] - Operating income increased to $183 million, up 13% compared to the prior year, while adjusted operating income rose to $230 million, reflecting a 19% increase [17][18] Business Segment Data and Key Metrics Changes - FSS US organic revenue increased to $3.2 billion, up over 3%, driven by strong performance in workplace experience, education, and sports and entertainment [7][11] - The international segment achieved double-digit organic revenue growth of 10%, totaling $1.4 billion, with growth across all geographies, particularly in the UK, Chile, Canada, and Spain [11][12] - The B&I segment saw a 17% growth in Q3, attributed to new business and high participation rates [98] Market Data and Key Metrics Changes - The US segment's client retention rate exceeded 97%, contributing to strong business momentum [5][22] - Major League Baseball attendance and per capita spending were strong, supporting revenue growth in the sports sector [80][110] - The company maintained a robust sales pipeline with significant new client wins, including partnerships with Howard University and the Oakland Athletics [10][11] Company Strategy and Development Direction - The company is focused on organic growth, with a disciplined capital allocation strategy aimed at maximizing shareholder returns through debt repayment and share repurchases [16][22] - Aramark is leveraging AI-driven technology to enhance supply chain capabilities and operational efficiencies [15][20] - The company aims to exit the fiscal year above long-term revenue growth expectations, with a strong emphasis on client retention and new business opportunities [5][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fourth-quarter guidance, citing strong business momentum and a robust sales pipeline [30][59] - The company is effectively managing the tariff environment and believes its business model is insulated from market volatility [14][23] - Management highlighted the importance of high retention rates and new business wins in driving future growth [22][59] Other Important Information - Aramark proactively repaid approximately $62 million of term loan B and repurchased about $31 million of its common stock during the quarter [21][22] - The company has over $1.4 billion in cash availability at quarter-end, positioning it well for future investments [22] Q&A Session Summary Question: Can you provide insight on the revenue acceleration expected in Q4? - Management indicated a strong start to Q4 and confidence in achieving guidance, with new contracts beginning operations in August and September [30][31] Question: What impacted the events business this quarter? - The arena business faced lower concert activity and renovations, which were not anticipated, leading to a slight drag on revenue [35] Question: Can you comment on the recent equity investment in the A's contract? - Management confirmed a small equity investment in the A's, emphasizing it is not a typical approach but reflects confidence in the partnership [44] Question: How did the education selling season perform? - The education segment had a successful selling season, with ongoing contracts expected to contribute significantly to revenue growth [50][51] Question: What is the outlook for organic revenue growth in FY 2026? - Management expressed confidence in achieving high net new business and strong retention rates, positioning the company well for future growth [72][74]

Earnings Performance - Aramark reported quarterly earnings of $0.4 per share, matching the Zacks Consensus Estimate, and an increase from $0.31 per share a year ago [1] - The company posted revenues of $4.63 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.77%, compared to $4.38 billion in the same quarter last year [2] Stock Performance - Aramark shares have increased approximately 15.6% since the beginning of the year, outperforming the S&P 500's gain of 7.6% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.68 on revenues of $5.13 billion, and for the current fiscal year, it is $1.94 on revenues of $18.62 billion [7] - The Business - Services industry, to which Aramark belongs, is currently in the top 39% of Zacks industries, suggesting a favorable outlook for the sector [8]

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 2025 Outlook," "Modeling Assumptions," and those related to our expectation ...

[Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) This section provides an overview of Aramark's strong third-quarter fiscal 2025 performance and strategic achievements [Third Quarter Fiscal 2025 Highlights](index=1&type=section&id=YEAR-OVER-YEAR%20SUMMARY) Aramark reported strong Q3 FY2025 results with record revenue and profitability in Global FSS, driven by growth and high client retention Third Quarter Fiscal 2025 Financial Highlights (YoY Change) | Metric | Change (%) | | :-------------------- | :--------- | | Revenue | +6% | | Organic Revenue | +5% | | Operating Income | +13% | | Adjusted Operating Income (AOI) | +19% | | GAAP EPS | +24% (to $0.27) | | Adjusted EPS | +29% (to $0.40) | - Achieved **record revenue** for any quarter in Global FSS history and **record profitability** for a third quarter in Global FSS history[5](index=5&type=chunk) - Client retention rate currently exceeds **97%** in both the FSS United States and International segments[5](index=5&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO highlighted major client wins, record retention, supply chain optimization, and disciplined capital allocation - Awarded one of the largest new client wins in company history, specifically within Sports & Entertainment, and achieved record client retention levels now surpassing **97%**[3](index=3&type=chunk)[5](index=5&type=chunk) - Supply Chain optimization initiatives, including additional AI-driven technology, have driven significant incremental value for clients and the Company[4](index=4&type=chunk) - Continues to advance disciplined capital allocation strategies, benefiting from a strong and flexible balance sheet designed to maximize shareholder returns[4](index=4&type=chunk) [Third Quarter Fiscal 2025 Financial Results](index=3&type=section&id=THIRD%20QUARTER%20RESULTS) This section details Aramark's consolidated financial performance for Q3 FY2025, including revenue, operating income, and cash flow [Consolidated Revenue Performance](index=3&type=section&id=THIRD%20QUARTER%20RESULTS%20-%20Consolidated%20Revenue) Consolidated revenue reached $4.6 billion, a 6% year-over-year increase, driven by net new business and base business expansion Consolidated Revenue (Q3 '25 vs Q3 '24) | Segment | Q3 '25 Revenue | Q3 '24 Revenue | Change (%) | Organic Revenue Change (%) | | :---------------- | :-------------- | :-------------- | :--------- | :------------------------- | | FSS United States | $3,247M | $3,144M | 3% | 3% | | FSS International | $1,379M | $1,232M | 12% | 10% | | **Total Company** | **$4,626M** | **$4,376M** | **6%** | **5%** | - Revenue growth was driven by net new business, base business, and a favorable currency translation effect of approximately **$21 million**[6](index=6&type=chunk) - This was the final quarter where prior year revenue included portfolio exits in Facilities, which are now behind the Company[6](index=6&type=chunk) [Operating Income and Profitability](index=3&type=section&id=THIRD%20QUARTER%20RESULTS%20-%20Operating%20Income) Operating Income increased 13% to $183 million, with Adjusted Operating Income growing 19% to $230 million, driven by higher revenue and supply chain enhancements Operating Income & Adjusted Operating Income (Q3 '25 vs Q3 '24) | Metric | Q3 '25 | Q3 '24 | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | | Operating Income | $183M | $162M | 13% | | Adjusted Operating Income (AOI) | $230M | $193M | 19% | | Operating Income Margin | 3.9% | 3.7% | +20 bps | | Adjusted Operating Income (AOI) Margin | 5.0% | 4.4% | +60 bps | - Profitability growth was due to Aramark's higher revenue levels, expanded supply chain capabilities, and disciplined above-unit cost management[8](index=8&type=chunk) [FSS United States Segment Performance](index=3&type=section&id=FSS%20United%20States%20Performance) FSS United States revenue grew 3%, with profitability improving due to increased base business volume and AI-driven supply chain productivity - Revenue growth was led by Business & Industry (higher participation, new client wins, expanded micro-market/vending), Education (increased meal plan volume, calendar shift), and Sports, Leisure, & Corrections (new business wins, higher per cap spending)[9](index=9&type=chunk) - Profitability increased due to higher base business volume, disciplined above-unit cost management, and AI-driven supply chain productivity, which enhanced purchasing decisions[10](index=10&type=chunk) [FSS International Segment Performance](index=3&type=section&id=FSS%20International%20Performance) FSS International reported a 12% revenue increase (10% organic), with broad-based growth across most countries and improved supply chain economics - Revenue growth was broad-based across nearly all countries, primarily from ongoing base business growth and net new business performance, with the U.K., Chile, Canada, and Spain driving the increase[9](index=9&type=chunk) - Experienced higher base business volume and strengthened supply chain economics from revenue growth, which more than offset labor expenses from additional observed holidays and the prior year's Men's European Football Championships benefit[10](index=10&type=chunk)[11](index=11&type=chunk) [Corporate Expenses](index=4&type=section&id=Corporate%20Expenses) Corporate expenses decreased year-over-year, primarily due to lower share-based compensation expenses - Corporate expenses decreased from lower share-based compensation expense[11](index=11&type=chunk) [Cash Flow and Capital Structure](index=4&type=section&id=CASH%20FLOW%20AND%20CAPITAL%20STRUCTURE) Net cash from operating activities was $77 million, with free cash flow at ($34) million, consistent with seasonal patterns, while the company managed its capital structure through debt repayment and share repurchases Third Quarter Cash Flow (in millions) | Metric | Q3 '25 | | :-------------------------------- | :------ | | Net cash provided by operating activities | $77 | | Free Cash Flow | ($34) | - Repaid approximately **$62 million** of Term Loan B due June 2030 and repurchased approximately **$31 million** of common stock in Q3 2025, with nearly **4 million shares** repurchased for approximately **$140 million** since November 2024[13](index=13&type=chunk) - At quarter-end, Aramark had over **$1.4 billion** in cash availability[13](index=13&type=chunk) - Capital allocation commitment includes investing in growth, repaying debt (target ~**3.0x** leverage by end of fiscal 2025), paying quarterly dividends, and opportunistic share repurchases[14](index=14&type=chunk) [Dividend Declaration](index=4&type=section&id=DIVIDEND%20DECLARATION) Aramark's Board of Directors approved a quarterly dividend of 10.5 cents per share of common stock, payable on August 20, 2025 - Aramark's Board of Directors approved a quarterly dividend of **10.5 cents per share** of common stock, payable on August 20, 2025, to stockholders of record on August 6, 2025[15](index=15&type=chunk) [Business Outlook and Strategic Direction](index=4&type=section&id=Business%20Outlook%20and%20Strategic%20Direction) This section outlines Aramark's current business momentum, client performance, and financial projections for fiscal year 2025 [Business Momentum and Client Performance](index=4&type=section&id=BUSINESS%20UPDATE) Aramark is experiencing strong business momentum with high client retention and is on track to meet or exceed its net new business target for fiscal 2025 - Gaining strong business momentum from prominent new client wins, expanded base business volume, and client retention rates currently exceeding **97%** across both FSS US and International[16](index=16&type=chunk) - On pace to achieve the high end of its **4% to 5%** net new business target for fiscal 2025, with the ability to potentially surpass it[16](index=16&type=chunk) - Q4 revenue is expected to benefit from ongoing base business expansion and net new business across all sectors in FSS United States and every geography in FSS International[16](index=16&type=chunk) [Fiscal Year 2025 Outlook](index=5&type=section&id=OUTLOOK) Aramark projects strong growth in organic revenue, adjusted operating income, and adjusted EPS for fiscal year 2025, alongside a reduced leverage ratio Fiscal Year 2025 Outlook (Year-over-year Growth) | Metric | FY24 Reference Point | FY25 Outlook (YoY Growth) | | :-------------------------- | :------------------- | :------------------------ | | Organic Revenue | $17,401M | +7.5% to +9.5% | | Adjusted Operating Income | $882M | +15% to +18% | | Adjusted EPS | $1.55 | +23% to +28% | | Leverage Ratio | 3.4x | ~3.0x | - The fiscal 2025 outlook reflects management's current assumptions regarding numerous evolving factors and the expected timing of commencing operations from new business, including certain large clients[18](index=18&type=chunk)[19](index=19&type=chunk) - Fiscal 2025 is a **53-week year**, with an expected benefit of ~**2%** to Organic Revenue and Adjusted Operating Income[20](index=20&type=chunk) [Corporate Information](index=6&type=section&id=Corporate%20Information) This section provides details on Aramark's upcoming conference call and an overview of the company's global operations and mission [Conference Call Details](index=6&type=section&id=CONFERENCE%20CALL%20SCHEDULED) Aramark scheduled a conference call for August 5, 2025, at 8:30 a.m. ET to discuss its earnings and outlook - A conference call is scheduled for **8:30 a.m. ET on August 5, 2025**, to discuss earnings and outlook, accessible on www.aramark.com[21](index=21&type=chunk) [About Aramark](index=6&type=section&id=About%20Aramark) Aramark is a global provider of food and facilities management services, operating in 16 countries with a commitment to hospitality and stakeholder value - Aramark (NYSE: ARMK) provides food and facilities management services to leading educational institutions, Fortune 500 companies, sports teams, healthcare providers, and municipalities in **16 countries**[22](index=22&type=chunk) - The company operates with a hospitality culture, striving to do great things for employees, partners, communities, and the planet[22](index=22&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines Aramark's non-GAAP financial measures and explains the adjustments made for reconciliation purposes [Definitions of Non-GAAP Measures](index=7&type=section&id=Selected%20Operational%20and%20Financial%20Metrics) This section defines key non-GAAP financial measures used by Aramark for evaluating operating profitability and cash operating costs - Key non-GAAP measures defined include Adjusted Revenue (Organic), Adjusted Operating Income (Constant Currency), Adjusted Net Income (Constant Currency), Adjusted EPS (Constant Currency), Covenant Adjusted EBITDA, and Free Cash Flow[25](index=25&type=chunk)[33](index=33&type=chunk) - These measures are used as supplemental indicators of operating profitability and cash operating costs, enabling better comparisons of historical results and evaluation of performance trends[34](index=34&type=chunk) - Non-GAAP metrics are not measurements of financial performance under GAAP and should not be considered in isolation or as substitutes for GAAP results[34](index=34&type=chunk) [Explanatory Notes to Non-GAAP Adjustments](index=8&type=section&id=Explanatory%20Notes%20to%20the%20Non-GAAP%20Schedules) This section details the specific adjustments made to reconcile GAAP to non-GAAP financial measures, including amortization, severance, and spin-off related charges - Adjustments include Amortization of Acquisition-Related Intangible Assets, Severance and Other Charges, Spin-off Related Charges, Gains, Losses and Settlements impacting comparability, Effect of Debt Repayments and Refinancings on Interest Expense, net, and Tax Impact of Adjustments to Adjusted Net Income[35](index=35&type=chunk)[39](index=39&type=chunk) - The Effect of Currency Translation adjustment eliminates the impact of currency fluctuations by presenting periods on a constant currency basis[40](index=40&type=chunk) [Forward-Looking Statements Disclaimer](index=9&type=section&id=Forward-Looking%20Statements) This section serves as a disclaimer, noting that the press release contains forward-looking statements subject to risks and uncertainties - The press release contains forward-looking statements reflecting current expectations, which are subject to risks and uncertainties that may cause actual results or outcomes to differ materially[42](index=42&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, and a comprehensive list of risk factors is available in the Company's SEC filings[43](index=43&type=chunk) [Condensed Consolidated Financial Statements](index=10&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Aramark's unaudited condensed consolidated financial statements, including statements of income, balance sheets, and cash flows [Condensed Consolidated Statements of Income](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) This section presents the unaudited condensed consolidated statements of income for the three and nine months ended June 27, 2025, and June 28, 2024 Condensed Consolidated Statements of Income (Three Months Ended) | Metric | June 27, 2025 (in Thousands) | June 28, 2024 (in Thousands) | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Revenue | $4,626,451 | $4,376,076 | | Total costs and expenses | $4,443,864 | $4,214,397 | | Operating income | $182,587 | $161,679 | | Net income attributable to Aramark stockholders | $71,783 | $58,126 | | Diluted Earnings per share | $0.27 | $0.22 | Condensed Consolidated Statements of Income (Nine Months Ended) | Metric | June 27, 2025 (in Thousands) | June 28, 2024 (in Thousands) | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Revenue | $13,457,835 | $12,983,754 | | Total costs and expenses | $12,883,809 | $12,496,039 | | Operating income | $574,026 | $487,715 | | Net income attributable to Aramark stockholders | $239,256 | $140,111 | | Diluted Earnings per share | $0.90 | $0.53 | [Condensed Consolidated Balance Sheets](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This section provides the unaudited condensed consolidated balance sheets as of June 27, 2025, and September 27, 2024, outlining assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (in Thousands) | Item | June 27, 2025 | September 27, 2024 | | :-------------------------------- | :------------ | :----------------- | | **Assets:** | | | | Total current assets | $3,528,537 | $3,406,562 | | Property and Equipment, net | $1,702,075 | $1,573,193 | | Goodwill | $4,852,720 | $4,677,201 | | Total Assets | **$13,283,678** | **$12,674,371** | | **Liabilities and Stockholders' Equity:** | | | | Total current liabilities | $2,737,997 | $4,214,210 | | Long-Term Borrowings | $6,253,834 | $4,307,171 | | Total Stockholders' Equity | $3,084,131 | $3,038,974 | | Total Liabilities and Stockholders' Equity | **$13,283,678** | **$12,674,371** | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This section presents the unaudited condensed consolidated statements of cash flows for the nine months ended June 27, 2025, and June 28, 2024 Condensed Consolidated Statements of Cash Flows (Nine Months Ended, in Thousands) | Activity | June 27, 2025 | June 28, 2024 | | :------------------------------------------ | :------------ | :------------ | | Net cash used in operating activities | ($254,527) | ($295,101) | | Net cash used in investing activities | ($614,178) | ($379,404) | | Net cash provided by (used in) financing activities | $679,377 | ($800,564) | | Decrease in cash and cash equivalents and restricted cash | ($174,909) | ($1,476,838) | | Cash and cash equivalents and restricted cash, end of period | $557,704 | $495,529 | [Non-GAAP Reconciliations](index=14&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including adjusted operating income, net income, EPS, and free cash flow [Reconciliation of Adjusted Consolidated Operating Income Margin](index=14&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20MEASURES%20-%20ADJUSTED%20CONSOLIDATED%20OPERATING%20INCOME%20MARGIN) This section presents detailed tables reconciling GAAP Operating Income and Revenue to Adjusted Operating Income and Adjusted Revenue (Organic) for the three and nine months ended June 27, 2025, and June 28, 2024 Adjusted Consolidated Operating Income (Q3 '25, in Thousands) | Segment | Operating Income (as reported) | Adjustments | Adjusted Operating Income | | :---------------- | :----------------------------- | :---------- | :------------------------ | | FSS United States | $160,030 | $29,265 | $189,295 | | FSS International | $49,059 | $18,373 | $67,432 | | Corporate | ($26,502) | $0 | ($26,502) | | **Total Company** | **$182,587** | **$57,638** | **$230,225** | Adjusted Consolidated Operating Income (YTD '25, in Thousands) | Segment | Operating Income (as reported) | Adjustments | Adjusted Operating Income | | :---------------- | :----------------------------- | :---------- | :------------------------ | | FSS United States | $505,434 | $88,446 | $593,880 | | FSS International | $154,297 | $30,140 | $184,437 | | Corporate | ($85,705) | $0 | ($85,705) | | **Total Company** | **$574,026** | **$118,586** | **$692,612** | [Reconciliation of Adjusted Net Income & Adjusted EPS](index=16&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20MEASURES%20-%20ADJUSTED%20NET%20INCOME%20%26%20ADJUSTED%20EARNINGS%20PER%20SHARE) This section provides tables reconciling Net Income Attributable to Aramark Stockholders (GAAP) to Adjusted Net Income and Adjusted EPS for the three and nine months ended June 27, 2025, and June 28, 2024 Adjusted Net Income & EPS (Three Months Ended, in Thousands except per share) | Metric | June 27, 2025 | June 28, 2024 | | :------------------------------------------ | :------------ | :------------ | | Net Income Attributable to Aramark Stockholders | $71,783 | $58,126 | | Total Adjustments (net of tax) | $34,762 | $24,775 | | Adjusted Net Income | $106,545 | $82,901 | | Diluted Weighted Average Shares Outstanding | 265,347 | 266,577 | | Adjusted Earnings Per Share | $0.40 | $0.31 | | Adjusted Earnings Per Share Growth % | 29.1% | - | Adjusted Net Income & EPS (Nine Months Ended, in Thousands except per share) | Metric | June 27, 2025 | June 28, 2024 | | :------------------------------------------ | :------------ | :------------ | | Net Income Attributable to Aramark Stockholders | $239,256 | $140,111 | | Total Adjustments (net of tax) | $96,017 | $128,191 | | Adjusted Net Income | $335,273 | $268,302 | | Diluted Weighted Average Shares Outstanding | 267,180 | 265,387 | | Adjusted Earnings Per Share | $1.25 | $1.01 | | Adjusted Earnings Per Share Growth % | 24.1% | - | [Reconciliation of Net Debt to Covenant Adjusted EBITDA](index=17&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20MEASURES%20-%20NET%20DEBT%20TO%20COVENANT%20ADJUSTED%20EBITDA) This section presents a reconciliation of Net Income Attributable to Aramark Stockholders to Covenant Adjusted EBITDA and calculates the Net Debt to Covenant Adjusted EBITDA ratio for the twelve months ended June 27, 2025, and June 28, 2024 Net Debt to Covenant Adjusted EBITDA (Twelve Months Ended, in Thousands) | Metric | June 27, 2025 | June 28, 2024 | | :------------------------------------------ | :------------ | :------------ | | Net Income from Continuing Operations Attributable to Aramark Stockholders | $361,667 | $248,434 | | Covenant Adjusted EBITDA | $1,452,066 | $1,307,063 | | Total Long-Term Borrowings | $6,294,947 | $5,977,606 | | Less: Cash and cash equivalents and short-term marketable securities | $545,213 | $550,361 | | Net Debt | $5,749,734 | $5,427,245 | | **Net Debt/Covenant Adjusted EBITDA** | **4.0** | **4.2** | [Reconciliation of Free Cash Flow](index=18&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20MEASURES%20-%20FREE%20CASH%20FLOW) This section provides a reconciliation of Net cash (used in) provided by operating activities to Free Cash Flow for the three, six, and nine months ended June 27, 2025, and June 28, 2024 Free Cash Flow Reconciliation (in Thousands) | Metric | 9 Months Ended June 27, 2025 | 6 Months Ended March 28, 2025 | 3 Months Ended June 27, 2025 | | :------------------------------------------ | :--------------------------- | :---------------------------- | :--------------------------- | | Net cash (used in) provided by operating activities | ($254,527) | ($331,204) | $76,677 | | Net purchases of property and equipment and other | ($342,714) | ($232,486) | ($110,228) | | **Free Cash Flow** | **($597,241)** | **($563,690)** | **($33,551)** | | Metric | 9 Months Ended June 28, 2024 | 6 Months Ended March 29, 2024 | 3 Months Ended June 28, 2024 | | :------------------------------------------ | :--------------------------- | :---------------------------- | :--------------------------- | | Net cash (used in) provided by operating activities | ($295,101) | ($435,797) | $140,696 | | Net purchases of property and equipment and other | ($270,912) | ($192,243) | ($78,669) | | **Free Cash Flow** | **($566,013)** | **($628,040)** | **$62,027** |

Group 1 - Aramark is set to announce its Q3 2025 earnings on August 5, 2025, with analysts predicting adjusted earnings of $0.40 per share and revenue of $4.66 billion, reflecting a 29% increase in earnings and a 6% rise in sales year-over-year [2] - In Q2 2025, Aramark reported a 2% increase in revenue to $4.28 billion and achieved 3% organic growth, with operating income rising 9% to $174 million and adjusted EPS increasing 22% to $0.34 [3] - The company has a market capitalization of $11 billion and reported total revenue of $18 billion over the past twelve months, with operating profits of $772 million and net income of $348 million [4] Group 2 - Historical data shows that Aramark's stock has a 50% probability of moving up or down after earnings announcements, with an average one-day increase of 3.5% and a maximum gain of 10% [2][7] - Over the last five years, there have been 20 documented earnings data points for Aramark, resulting in 10 positive and 10 negative one-day returns, maintaining a consistent 50% rate of positive returns [7] - The company reiterated its full-year guidance, expecting organic revenue growth of 7.5%–9.5% and adjusted EPS growth of 23%–28% [3]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Aramark (ARMK) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the food, facilities, and uniform services sector [3] Group 2: Earnings Growth - Historical EPS growth rate for Aramark is 32.8%, with projected EPS growth of 24.9% this year, significantly higher than the industry average of 10.9% [5] Group 3: Asset Utilization - Aramark has an asset utilization ratio (sales-to-total-assets ratio) of 1.37, indicating it generates $1.37 in sales for every dollar in assets, compared to the industry average of 0.96 [6] Group 4: Sales Growth - The company's sales are expected to grow by 7% this year, while the industry average is projected at 0% [7] Group 5: Earnings Estimate Revisions - Current-year earnings estimates for Aramark have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] Group 6: Investment Potential - Aramark has achieved a Growth Score of A and a Zacks Rank of 2, indicating it is a potential outperformer and a solid choice for growth investors [10]

Company Overview - Aramark (ARMK) is part of the Business Services group, which consists of 258 companies and currently ranks 5 within the Zacks Sector Rank [2] - The Zacks Rank system focuses on earnings estimates and revisions to identify stocks with improving earnings outlooks, with Aramark holding a Zacks Rank of 2 (Buy) [3] Performance Metrics - Year-to-date, Aramark has gained approximately 18.3%, significantly outperforming the average gain of 2.2% for the Business Services group [4] - The consensus estimate for Aramark's full-year earnings has increased by 1% over the past 90 days, indicating improved analyst sentiment [3] Industry Comparison - Aramark belongs to the Business - Services industry, which includes 26 individual stocks and currently ranks 90 in the Zacks Industry Rank, with an average gain of 16.7% this year [5] - Another outperforming stock in the Business Services sector is Cipher Mining Inc. (CIFR), which has returned 44% year-to-date and also holds a Zacks Rank of 2 (Buy) [4][5]

Core Insights - The article emphasizes the importance of taking proactive steps towards career advancement rather than waiting for promotions that may not materialize [1] Group 1 - The quote from Sallie Krawcheck encourages individuals to start their own businesses if they are dissatisfied with their current job situation [1]