Aramark (NYSE:ARMK) Q1 2024 Earnings Conference Call February 6, 2024 8:30 AM ET Company Participants Felise Kissell - SVP, IR & Corporate Development John Zillmer - CEO Jim Tarangelo - CFO Conference Call Participants Lizzie Dove - Goldman Sachs Harry Martin - Bernstein Andrew Steinerman - J.P. Morgan Shlomo Rosenbaum - Stifel Jasper Bibb - Truist Securities Heather Balsky - BOA Toni Kaplan - Morgan Stanley Neil Tyler - Redburn Atlantic Ashish Sabadra - RBC Capital Markets Josh Chan - UBS Andrew Wittmann ...

Core Insights - Aramark reported $4.41 billion in revenue for Q4 2023, a year-over-year decline of 4.2%, but exceeded the Zacks Consensus Estimate by 3.28% [1] - The EPS for the quarter was $0.41, matching the previous year's EPS, and surpassed the consensus estimate of $0.35 by 17.14% [1] Revenue Performance - International Food and Support Services revenue was $1.20 billion, exceeding the estimated $1.11 billion, reflecting a year-over-year increase of 20.4% [2] - U.S. Food and Support Services revenue reached $3.21 billion, slightly above the $3.17 billion estimate, with a year-over-year growth of 10% [2] Operating Income Analysis - U.S. Operating Income was reported at $174.77 million, below the average estimate of $183.91 million [2] - International Operating Income was $46.24 million, slightly above the estimate of $45.60 million [2] - Adjusted Operating Income for Corporate was -$24.93 million, better than the estimated -$34.29 million [2] - Adjusted Operating Income for North America was $201.90 million, in line with the estimate of $201.20 million [2] - Adjusted Operating Income for International was $53.61 million, exceeding the estimate of $48.39 million [2] - Corporate Operating Income was -$54.06 million, slightly worse than the estimate of -$53.04 million [2] Stock Performance - Aramark shares have returned +1.9% over the past month, compared to the S&P 500 composite's +5.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

TOGETHER WE ARE Q1 Fiscal 2024 Earnings Results Forward ...

Core Viewpoint - Aramark reported strong first quarter fiscal 2024 results, achieving record revenue and profit, driven by effective growth strategies and moderating inflation [1][11][13]. Financial Performance - Consolidated revenue reached $4.4 billion, a 13% increase year-over-year, attributed to strong base business volume, pricing actions, and net new business growth [1][4]. - Organic revenue also grew by 13% compared to the prior year [2]. - Operating income increased by 10% year-over-year to $167 million, with Adjusted Operating Income (AOI) growing by 28% to $231 million [4][7]. Segment Performance - FSS United States revenue grew due to strong performance in Education, Sports & Entertainment, and new client wins in Business & Industry [3][4]. - FSS International revenue increased across all geographies, particularly in the U.K., Canada, and Germany, driven by consistent net new business performance [4][7]. Profitability Metrics - Operating income margin was slightly lower than the previous year due to higher expenses related to the Uniform Services spin-off, while AOI margin improved by 64 basis points year-over-year [4][7]. - Increased profitability was supported by effective cost management and favorable inflation trends [11]. Cash Flow and Capital Structure - The company experienced a cash outflow in the first quarter, primarily due to seasonal factors and higher working capital needs [9]. - Aramark reduced its net debt by over $2.2 billion compared to the prior year, redeeming $1.5 billion of Senior Notes due 2025 [9]. Dividend Declaration - The Board of Directors approved a quarterly dividend of 9.5 cents per share, reflecting the company's strengthening financial profile [10]. Business Outlook - The company anticipates continued profitable growth and margin expansion, supported by operational maturity of new business and ongoing supply chain initiatives [11][13]. - Updated fiscal 2024 outlook includes expectations for organic revenue growth of 7%, Adjusted Operating Income growth of 17%, and Adjusted EPS growth of 30% [13].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 29, 2023 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |-----------------------------------------------------------------------|------------------------------------------------------------ ...

PHILADELPHIA--(BUSINESS WIRE)--Aramark’s (NYSE: ARMK) Board of Directors approved a quarterly dividend of 9.5 cents per share of common stock payable on February 28, 2024 to stockholders of record at the close of business on February 14, 2024. About Aramark Aramark (NYSE: ARMK) proudly serves the world’s leading educational institutions, Fortune 500 companies, world champion sports teams, prominent healthcare providers, iconic destinations and cultural attractions, and numerous municipalities in 15 countr ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Aramark (ARMK) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 6. On t ...

Aramark provided updates on its global responsible business practices and performance in the 2023 Be Well. Do Well. Progress Report published today. (Photo: Business Wire)Aramark provided updates on its global responsible business practices and performance in the 2023 Be Well. Do Well. Progress Report published today. (Photo: Business Wire)PHILADELPHIA--(BUSINESS WIRE)--Aramark (NYSE: ARMK), a leading global provider of food and facilities services, with operations spanning the education, healthcare, busine ...

PHILADELPHIA--(BUSINESS WIRE)--Aramark (NYSE:ARMK), a global leader in food and facilities management, announced that it will host a conference call to review its first quarter fiscal 2024 results on Tuesday, February 6, 2024 at 8:30 a.m. ET. A news release containing the results will be issued before the call. The conference call will be broadcast live on the Aramark Investor Relations website. Those parties interested in participation via dial-in may register here. Once registration is completed, partic ...

Program Overview - Aramark announced a new program to remotely connect clinical dietitians with hospital patients using cloud-based technologies [1] - The program includes a technology service agreement with Teladoc Health, leveraging Teladoc's Solo platform integrated with Microsoft Teams [1] - Hospitals must have a clinical nutrition service agreement with Aramark to participate [1] Program Benefits - The program enables vulnerable patients in underserved areas to receive better care by removing technology and location barriers [2] - Hospitals gain access to regulatory-compliant medical nutrition therapy, trained dietitians, Teladoc hardware, services, technical support, and remote device monitoring [2] - The program helps recruit more clinical dietitians by allowing them to work across a wide range of clients in licensed states [3] Pilot Example - At the University Medical Center in Lubbock, Texas, a vacant clinical dietitian position typically takes 6 months to fill [3] - Using the program, a clinician temporarily relocated to another part of Texas was able to continue working full-time as a pediatric dietitian [3] - The clinician completed all program requirements within two months and remains a vital part of the medical team [3] Industry Impact - Clinical dietitians are in high demand, especially in rural areas facing hiring shortages [3] - The program helps hospitals retain difficult-to-recruit dietitians and maintain high-quality patient care [4] Company Background - Aramark Healthcare+ serves over 600 healthcare facilities in the US, offering food services, environmental services, and facilities management [5] - The company focuses on improving patient outcomes through hospitality, science, and culinary expertise [5] - Aramark operates in 18 countries, serving educational institutions, Fortune 500 companies, sports teams, healthcare providers, and cultural attractions [6] - The company has been recognized for diversity, responsibility, and LGBTQ equality [7]