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Mar 29, 2024

Aramark Q2 2024 Earnings Report

Aramark's Q2 2024 earnings reflected strong momentum across the business, generating record revenue in both the FSS US and International segments, and increased profitability driven by revenue growth, supply chain strategies, and cost discipline.

Key Takeaways

Aramark reported a strong second quarter with a 7% increase in revenue to $4.2 billion, driven by strong base business volume, pricing actions, and net new business growth. Operating income increased by 27% to $159 million, and adjusted EPS grew by 79% to $0.29.

Revenue increased by 7% year-over-year, with organic revenue growth of 9%.

Operating Income increased 27% year-over-year to $159 million; Adjusted Operating Income (AOI) grew 29% to $187 million.

GAAP EPS increased 271% to $0.20; Adjusted EPS increased 79% to $0.29.

The company raised its full-year outlook for organic revenue growth to approximately 9%, AOI growth of +17% to +20%, and adjusted EPS growth of +30% to +35%.

Total Revenue
$4.2B
Previous year: $4.6B
-8.7%
EPS
$0.29
Previous year: $0.28
+3.6%
Organic Revenue Change
9%
Gross Profit
$222M
Previous year: $423M
-47.6%
Cash and Equivalents
$357M
Previous year: $292M
+22.0%
Free Cash Flow
$140M
Total Assets
$12.6B
Previous year: $15.5B
-18.7%

Aramark

Aramark

Forward Guidance

Aramark raised its full-year Outlook for Organic Revenue growth, AOI growth and adjusted EPS growth.

Positive Outlook

  • Organic Revenue Growth ~ +9%
  • AOI Growth +17% to +20%
  • Adjusted EPS Growth +30% to +35%
  • Leverage ~ 3.5x
  • Constant Currency, except Leverage Ratio