NYSE$ARMK

Aramark · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Aramark's Q1 2024 earnings were released, revealing record revenue performance and increased profitability.

Aramark reported a strong start to fiscal year 2024, with record revenue driven by stronger sales volume, pricing, and net new business. The company saw significant growth in both its FSS U.S. and International segments, leading to increased profitability due to effective cost management and favorable inflation trends. Aramark updated its fiscal 2024 outlook for both AOI and Adjusted EPS growth and reaffirmed expectations for Organic Revenue growth and Leverage Ratio.

  • Revenue increased by 13%, with organic revenue also up by 13%.
  • Operating Income increased by 10%, while Adjusted Operating Income (AOI) grew by 28%.
  • GAAP EPS decreased by 27% to $0.11, but Adjusted EPS increased by 33% to $0.41.
  • Net debt position reduced by more than $2.2 billion compared to the prior year period.

Headline financials

Total Revenue

$4.41B

Previous: $4.6B-4.2%
EPS

$0.11

Previous: $0.44-75.0%
Organic Revenue Growth

13.0%

Previous: 18.0%-27.8%
Capital Expenditures

-$116M

No prior period
Free Cash Flow

$28.5M

Previous: $74.2M-61.5%
Net Income

$28.5M

Previous: $74.2M-61.5%
Operating Income

$167M

Previous: $200M-16.4%
Gross Profit

-$4.15B

Previous: -$4.3B+3.4%
Cash & Equivalents

$296M

Previous: $305M-3.1%
Total Assets

$12.4B

Previous: $15.3B-18.8%
Stock-Based Comp

$13.7M

Previous: $20.6M-33.6%

Revenue & EPS history

Aramark · Revenue · Quarterly

$4.41B

Q1 2024-4.2%vs Q1 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

Aramark anticipates continued profitable growth and margin expansion through the operational maturing of new business, ongoing supply chain initiatives, front-line contribution from leveraging a flexible operating model and cost control measures. The Company updated its fiscal 2024 outlook for both AOI and Adjusted EPS growth and reaffirmed expectations for Organic Revenue growth and Leverage Ratio.

Tailwinds

  • Organic Revenue growth +7%— +9%
  • Adjusted Operating Income growth +17%— +20%
  • Adjusted EPS growth +30%— +35%
  • Leverage Ratio ~3.5x
  • Business strengthening as the quarter progressed

Headwinds

  • Unfavorable economic conditions
  • Natural disasters, global calamities, climate change, pandemics, energy shortages, sports strikes and other adverse incidents
  • Geopolitical events including, but not limited to, the ongoing conflict between Russia and Ukraine and the growing conflict in the Middle East, global supply chain disruptions, inflation, volatility and disruption of global financial markets
  • The failure to retain current clients, renew existing client contracts and obtain new client contracts
  • A determination by clients to reduce their outsourcing or use of preferred vendors

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.4%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+3.4%

Avg return

30 days after

50%

27 / 54 earnings

Positive

+9.8%

Q2 2025

Best reaction

-9.0%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+1.1%+19.3%+22.4%
Q1 2026+5.6%+0.5%+3.1%
Q4 2025-5.2%-0.5%-0.7%
Q2 2025+9.8%+12.2%+16.2%
Q1 2025-2.1%-0.9%-7.6%
Q4 2024-2.8%-4.5%+4.2%
Q3 2024+1.8%+4.4%+13.0%
Q2 2024+0.8%+5.3%+3.4%
Q1 2024-1.8%+3.7%+7.5%
Q4 2023-5.2%-2.8%-3.3%
Q3 2023+9.0%+3.2%-3.4%
Q2 2023+7.2%+8.9%+19.0%
Q1 2023-9.0%-12.3%-18.3%
Q4 2022+4.2%+4.6%+7.4%
Q3 2022+3.1%+5.8%+4.7%
Q2 2022-4.4%-1.8%-1.5%
Q1 2022+3.3%-1.4%-4.3%
Q4 2021+0.3%-3.9%-12.2%
Q3 2021+0.5%+1.5%-4.7%
Q2 2021-3.5%+3.9%-0.3%
Q1 2021-0.7%-2.7%+12.5%
Q4 2020-3.3%+1.0%+7.9%
Q3 2020+1.8%+12.4%+37.7%
Q2 2020-7.0%+2.1%+10.5%
Q1 2020-1.9%-7.0%-23.3%
Q4 2019-0.4%-1.9%-0.5%
Q3 2019+8.0%+9.2%+20.4%
Q2 2019-2.6%+0.0%+12.4%
Q1 2019-1.4%-5.4%-11.4%
Q4 2018+2.4%+6.6%-5.4%
Q3 2018+5.1%+4.6%+6.0%
Q2 2018+1.1%+2.6%+6.1%
Q1 2018-4.8%-7.1%-6.8%
Q4 2017-7.0%-4.7%-2.0%
Q3 2017+0.7%-1.1%+1.3%
Q2 2017+2.9%+1.5%+9.1%
Q1 2017+6.0%+6.1%+8.5%
Q4 2016-8.7%-6.6%-0.6%
Q3 2016+5.5%+5.0%+4.3%
Q2 2016-3.2%
Q1 2016-0.6%
Q4 2015+9.2%
Q3 2015-0.1%
Q2 2015+1.6%
Q1 2015-3.4%
Q4 2012-1.5%
Q4 2014+4.3%
Q3 2013-0.3%
Q3 2014-0.3%
Q2 2013-2.0%
Q2 2014-2.0%
Q4 2013+3.4%
Q1 2014+3.4%
Q1 2013+3.4%
Q3 2012

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