NYSE$ARMK

Aramark · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Aramark's third quarter results reflected continued focus on profitable growth across the organization.

Aramark's third quarter fiscal 2023 results showed a 15% increase in revenue, driven by net new business, pricing actions, and base business growth. The company raised its full-year performance expectations for fiscal 2023.

  • Revenue increased by 15%, with organic revenue up 14%, driven by net new business, pricing actions, and base business growth across all reportable segments.
  • Operating Income increased by 38%, and Adjusted Operating Income (AOI) grew by 34%, reflecting margin expansion due to operating leverage, improved supply chain economics, and disciplined cost management.
  • EPS increased by 706% to $1.29, and Adjusted EPS increased by 48% to $0.36, driven by a consistent focus on profitable growth.
  • The company continued to strengthen its balance sheet and financial flexibility by refinancing debt and repaying approximately $630 million of debt, with over $1.0 billion in cash availability at quarter-end.

Headline financials

Total Revenue

$4.75B

Previous: $4.13B+15.1%
EPS (adj)

$0.36

Previous: $0.25+44.0%
Organic Revenue Growth

14.0%

Previous: 39.0%-64.1%
Free Cash Flow

$338M

Previous: $40.3M+739.3%
Net Income

$338M

Previous: $40.3M+739.3%
Operating Income

$203M

Previous: $148M+37.5%
Gross Profit

-$4.07B

Previous: -$3.88B-5.0%
Cash & Equivalents

$402M

Previous: $439M-8.3%
Total Assets

$15.4B

Previous: $15B+2.7%
Stock-Based Comp

$20.5M

Previous: $23.9M-14.0%

Revenue & EPS history

Aramark · Revenue · Quarterly

$4.75B

Q3 2023+15.1%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

Aramark raised its full-year performance expectations for fiscal 2023.

Tailwinds

  • Organic Revenue Growth ~15% (from >13%), comprised of...Global FSS ~17% (from ~15%)
  • Uniform Services~5.5%
  • Adjusted Operating Income Growth ~33% (from ~32%), comprised of...Global FSS ~46% (from ~45%)
  • Uniform Services~8% (from ~7%)
  • Free Cash Flow ~$475 million

Headwinds

  • Deferred payroll taxes related to CARES Act$64 million
  • Spin-off and restructuring related costs$100-$120 million
  • After these items, Free Cash Flow ~$300 million
  • Leverage Ratio less than 4.0x
  • Outlook does not reflect any incremental public company costs associated with the spin transaction.

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 Q3 2023

Historical avgQ3 2023

+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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