Overview

* Aramark ( ARMK ) fiscal Q3 revenue up 6% yr/yr to $4.626 bln, missing estimates

* Adjusted EPS for fiscal Q3 meets analyst expectations, rising 29% yr/yr

* Operating income increased 13% yr/yr, driven by supply chain expansion

* The food service and facilities provider highlights significant client wins, retention rate exceeds 97%

Outlook

* Aramark ( ARMK ) expects FY25 organic revenue growth of 7.5% to 9.5%

* Company anticipates FY25 adjusted EPS growth of 23% to 28%

* Aramark ( ARMK ) projects FY25 adjusted operating income growth of 15% to 18%

* Company expects leverage ratio to reach ~3.0x by end of FY25

Result Drivers

* REVENUE GROWTH - Driven by strong base business volume, new client wins, and high retention rates

* SUPPLY CHAIN OPTIMIZATION - Expanded capabilities and AI-driven technology enhanced profitability

* SEGMENT PERFORMANCE - FSS US growth from new client wins and expanded services; FSS International broad-based growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $4.626 $4.66

Revenue bln bln (10

Analysts

)

Q3 Meet $0.4 $0.4 (11

Adjusted Analysts

EPS )

Q3 EPS $0.27

Q3 $0.105

Dividend

Q3 Free $34 mln

Cash

Flow

Q3 $183 mln

Operatin

g income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy"

* Wall Street's median 12-month price target for Aramark ( ARMK ) is $45.00, about 4.2% above its August 4 closing price of $43.11

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)