MachineHeadz/iStock via Getty Images Investment overview I give a buy rating for Aramark (NYSE:ARMK) as there is a visible path for the top line to continue growing, supported by both volume and pricing, and margins to expand based on historical and peer performance. Business description ARMK is a leading global contract catering operator (its previous uniform segment has been spun off as Vestis). Business segment wise, ARMK reports two business segments: US Food and Support Services [USFSS], which is ~ ...

CHICAGO, May 20, 2024 /PRNewswire/ -- The Lester and Rosalie Anixter Center, a not-for-profit leader and community-based rehabilitation organization serving people of all ages with disabilities, is partnering with Aramark and Triton College to provide access to employment opportunities for people with disabilities. "At Anixter we envision a world where access, opportunity and belonging are realized by everyone," says Samantha Handley, President and CEO of Lester and Rosalie Anixter Center. "We are grateful ...

Revenue and Income - Revenue for the three months ended March 29, 2024, was $4,199,913, an increase of 7.2% from $3,916,156 for the same period in 2023[8]. - Total revenue for the six months ended March 29, 2024, was $8,607.7 million, an increase of 9.9% from $7,829.9 million for the same period in 2023[71]. - Net income from continuing operations attributable to Aramark stockholders for the three months ended March 29, 2024, was $53,449, compared to $14,249 for the same period in 2023[8]. - Net income from Continuing Operations for the six months ended March 29, 2024, was $81,519,000, compared to $52,088,000 for the same period in 2023, representing a 56.5% increase[13]. - Basic earnings per share from continuing operations for the three months ended March 29, 2024, was $0.20, a significant increase from $0.05 in the prior year[8]. - Operating income for the six months ended March 29, 2024, was $326,036, up 17.7% from $277,042 in the prior year[9]. - Operating income for the three months ended March 29, 2024, rose by 26.9% to $159.0 million, up from $125.3 million in the prior year[101]. - Net income from continuing operations for the three months ended March 29, 2024, surged by 275.1% to $53.0 million, compared to $14.1 million in the same period last year[101]. Costs and Expenses - Total costs and expenses for the six months ended March 29, 2024, were $8,281,642, compared to $7,552,834 for the same period in 2023, reflecting a rise of 9.7%[9]. - Interest expense for the six months ended March 29, 2024, was $200,939, down from $214,555 in the previous year[9]. - Interest expense for the three months ended March 29, 2024, decreased by 24.0% to $86.3 million from $113.5 million in the prior year[101]. - Income taxes paid increased to $77.0 million for the six months ended March 29, 2024, compared to $22.7 million for the same period in 2023, indicating a significant increase in tax obligations[16]. - Share-based compensation expense was $29,444,000 for the six months ended March 29, 2024, down from $39,123,000 for the same period in 2023, reflecting a 24.7% decrease[13]. Cash Flow and Financing - Net cash used in operating activities of Continuing Operations was $(435,797,000) for the six months ended March 29, 2024, compared to $(362,438,000) for the same period in 2023, indicating a 20.2% increase in cash outflow[13]. - Net cash used in investing activities of Continuing Operations was $(289,821,000) for the six months ended March 29, 2024, compared to $(204,164,000) for the same period in 2023, reflecting a 42.0% increase in cash outflow[13]. - The company experienced a net cash outflow from financing activities of $(833,012,000) for the six months ended March 29, 2024, compared to a net cash inflow of $486,117,000 for the same period in 2023[13]. - Proceeds from long-term borrowings amounted to $219,231,000 for the six months ended March 29, 2024, compared to $174,937,000 for the same period in 2023, showing a 25.3% increase[13]. - Cash and cash equivalents as of March 29, 2024, totaled $356.6 million, with $771.2 million available under the senior secured revolving credit facility[115]. Segment Performance - Total FSS United States revenue for the six months ended March 29, 2024, was $6,256.2 million, up from $5,764.2 million for the same period in 2023[71]. - Total FSS International revenue for the six months ended March 29, 2024, was $2,351.5 million, compared to $2,065.7 million for the same period in 2023[71]. - FSS United States revenue for the three months ended March 29, 2024, was $3,043.4 million, compared to $2,843.2 million for the same period in 2023, reflecting a 7.0% growth[87]. - FSS International revenue for the three months ended March 29, 2024, increased to $1,156.5 million from $1,073.0 million, marking a 7.8% rise[87]. Strategic Initiatives and Market Outlook - The company anticipates continued growth driven by strategic market expansions and new product developments[8]. - The company is focused on integrating acquired businesses effectively to enhance operational efficiency and drive profitability[8]. - The company expects continued inflationary pressures but has seen moderation in costs related to products, energy, and labor[98]. Discontinued Operations and Corporate Changes - The Company completed the separation and distribution of its Uniform segment into Vestis Corporation on September 30, 2023, with historical results reflected as discontinued operations[25]. - The Company completed the spin-off of its Uniform segment into an independent publicly traded company, Vestis, with each Aramark stockholder receiving one share of Vestis for every two shares of Aramark held[40]. - The Company incurred $20.0 million in transaction fees related to the separation and distribution of its Uniform segment during the six months ended March 29, 2024[42]. Accounting and Compliance - The Company is evaluating the impact of new accounting standards related to income tax disclosures and segment reporting, effective for fiscal years 2026 and 2025 respectively[27]. - The company is compliant with all covenants in the Credit Agreement as of March 29, 2024[121].

Aramark (NYSE:ARMK) Q2 2024 Earnings Conference Call May 7, 2024 8:30 AM ET Company Participants Felise Kissell - Senior Vice President, Investor Relations and Corporate Development John Zillmer - Chief Executive Officer Jim Tarangelo - Chief Financial Officer Conference Call Participants Toni Kaplan - Morgan Stanley Ian Zaffino - Oppenheimer Lizzie Dove - Goldman Sachs Emily Marzo - BOA Andrew Steinerman - JPMorgan Neil Tyler - Redburn Atlantic Shlomo Rosenbaum - Stifel Leo Carrington - Citi Ashish Sabadra ...

TOGETHER WE ARE | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------|-------|-------|-------|-------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q2 Fiscal 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Earnings Results | | | | | | | | | | | | | | May 7, 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Forward-Looking Statements TOGE ...

Core Viewpoint - Aramark reported a decline in revenue for the quarter ended March 2024, with a total of $4.2 billion, representing an 8.7% decrease year-over-year, while EPS increased slightly to $0.29 from $0.28 in the previous year [1] Revenue Performance - FSS International revenues were reported at $1.16 billion, slightly below the average estimate of $1.19 billion, showing a year-over-year increase of 7.7% [2] - FSS United States revenues reached $3.04 billion, marginally below the average estimate of $3.05 billion, with a year-over-year change of 7.1% [2] Operating Income - Operating income for FSS United States was $144 million, exceeding the estimated $142.49 million [2] - Operating income for FSS International was reported at $43 million, below the average estimate of $45.20 million [2] - Adjusted operating income for Corporate was -$28 million, better than the estimated -$31.32 million [2] - Adjusted operating income for FSS United States was $168 million, surpassing the average estimate of $161.35 million [2] - Adjusted operating income for FSS International was $47 million, slightly below the average estimate of $48.38 million [2] - Overall operating income for Corporate was -$28 million, compared to the average estimate of -$31.32 million [2] Stock Performance - Over the past month, Aramark shares have returned -2.8%, while the Zacks S&P 500 composite experienced a -0.4% change [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]

Aramark (ARMK) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.54%. A quarter ago, it was expected that this provider of food, facilities and uniform services would post earnings of $0.35 per share when it actually produced earnings of $0.41, delivering a surprise of 17.14%.Over th ...

For Immediate Release Inquiries: Felise Glantz Kissell (215) 409-7287 Kissell-Felise@aramark.com Gene Cleary (215) 409-7945 Cleary-Gene@aramark.com Aramark Reports Second Quarter Earnings YEAR-OVER-YEAR SUMMARY • Revenue +7%; Organic Revenue +9% ◦ Growth from strong base business volume, pricing actions, and net new business ◦ Record revenue in a second quarter for both the FSS U.S. and International segments • Operating Income +27% ; Adjusted Operating Income (AOI) +29% ◦ Operating Income Margin +59 bps; A ...

In its upcoming report, Aramark (ARMK) is predicted by Wall Street analysts to post quarterly earnings of $0.26 per share, reflecting a decline of 7.1% compared to the same period last year. Revenues are forecasted to be $4.25 billion, representing a year-over-year decrease of 7.8%.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a company reveal ...

Aramark announced 17 chefs from its Collegiate Hospitality group have graduated from the prestigious ProChef® certification program at The Culinary Institute of America (CIA). Seen here is one of the three graduating cohorts. (Photo: Business Wire)Aramark announced 17 chefs from its Collegiate Hospitality group have graduated from the prestigious ProChef® certification program at The Culinary Institute of America (CIA). Seen here is one of the three graduating cohorts. (Photo: Business Wire)PHILADELPHIA--(B ...