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]

Core Viewpoint - Growth investors are interested in stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Aramark (ARMK) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company provides food, facilities, and uniform services, making it a strong candidate for growth investment [3] Group 2: Earnings Growth - Aramark has a historical EPS growth rate of 32.8%, with projected EPS growth of 24.9% this year, significantly higher than the industry average of 10.9% [4] Group 3: Asset Utilization - The company's asset utilization ratio (sales-to-total-assets ratio) is 1.37, indicating that Aramark generates $1.37 in sales for every dollar in assets, outperforming the industry average of 0.96 [5] Group 4: Sales Growth - Aramark's sales are expected to grow by 7% this year, compared to an industry average of 0% [6] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Aramark, with the Zacks Consensus Estimate for the current year increasing by 0.1% over the past month [7] Group 6: Investment Positioning - Aramark holds a Zacks Rank of 2 and a Growth Score of A, positioning it well for potential outperformance in the market [9]

Core Viewpoint - Aramark (ARMK) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that could lead to increased stock price [1][3]. Earnings Estimates and Stock Price Impact - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors [4]. - Rising earnings estimates and the rating upgrade for Aramark suggest an improvement in the company's underlying business, which may lead to higher stock prices as investors respond positively [5]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The Zacks rating system maintains an equal proportion of "buy" and "sell" ratings across over 4,000 stocks, ensuring that only the top 20% receive a "Strong Buy" or "Buy" rating [9][10]. Earnings Estimate Revisions for Aramark - For the fiscal year ending September 2025, Aramark is expected to earn $1.94 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 1% over the past three months [8].

Group 1: Company Performance - Aramark (ARMK) has gained approximately 13.8% year-to-date, significantly outperforming the average gain of 2.8% in the Business Services group [4] - The Zacks Consensus Estimate for Aramark's full-year earnings has increased by 1% over the past quarter, indicating improving analyst sentiment and a positive earnings outlook [3] - In comparison to its industry, Aramark is slightly underperforming, as the Business - Services industry has gained about 18% year-to-date [5] Group 2: Industry Context - Aramark is part of the Business Services group, which consists of 260 companies and currently ranks 2 in the Zacks Sector Rank [2] - The Business - Services industry, which includes 26 stocks, is currently ranked 44 in the Zacks Industry Rank [5] - Cipher Mining Inc. (CIFR), another stock in the Business Services sector, has outperformed with a return of 24.8% year-to-date [4]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach may involve investing in bargain stocks that are experiencing recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Aramark (ARMK) Analysis - Aramark (ARMK) has shown a price increase of 7.4% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, ARMK's stock has gained 29.9%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - ARMK has a beta of 1.28, suggesting it moves 28% more than the market in either direction, indicating fast-paced momentum [5] - The stock has a Momentum Score of A, suggesting it is an opportune time to invest [6] - ARMK has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - The stock is trading at a Price-to-Sales ratio of 0.63, indicating it is relatively undervalued, as investors pay only 63 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides ARMK, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [9]