Aramark Q4 FY2024 earnings call

• John Zillmer noted that Aramark reached new highs in financial performance in fiscal '2024, with year-over-year organic revenue growth of 10%, adjusted operating income increasing 20%, and adjusted EPS rising by 35% on a constant currency basis. The Board approved a new $500 million share repurchase program. • Jim Tarangelo discussed GAAP revenue of $17.4 billion in fiscal '2024, up 8%, with organic revenue growth of 10%. Adjusted operating income was $882 million, up 20%, resulting in an AOI margin of 5.1%. • Accomplishments included significant annualized gross new business wins over $1.4 billion, volunteer backpack program, being named America's Most Admired Workplace 2025 and Best Place to Work in healthcare.

For FSS U.S., organic revenue grew 7% in fiscal '2024, primarily from record base business volume and pricing. In the fourth quarter, organic revenue in the segment increased 4% as pricing began to normalize with improving inflation, particularly in Education. International saw organic revenue increase 17% in fiscal '2024, with 16% growth in the fourth quarter. Global Supply Chain continued to grow, with global GPOs aggressively expanding with double-digit organic net-new growth across all GPO channels, contributing to $1 billion in new spend this past fiscal year with total spend reaching $20 billion.

• Fiscal '2025 organic revenue growth is anticipated to be 7.5% to 9.5%. • AOI is expected to increase 15% to 18%. • Adjusted EPS growth is projected to be 23% to 28%. • Leverage ratio is expected to be approximately 3 times. • Fiscal '2025 has an extra or 53rd week, which is expected to benefit organic revenue and AOI by about 2%.

• Exiting lower margin facility services accounts, such as Chicago Public Schools, impacted retention. • Inflation in Latin America is lagging behind other regions. • Uncertainties in credit markets and interest rates.

Q: On facilities contracts exited, any more lurking?

A: No, unique circumstances, facilities business has good runway.

Q: Net new breakdown between outsourcing and win-aways?

A: Robust environment, strong pipelines in first time outsourcing and market growth.

Q: Pricing outlook for fiscal '2025?

A: Pricing expected to be in the 2% to 3% range.

Q: Impact of extra week in fiscal '2025?

A: Expected to benefit organic revenue and AOI by about 2%.

Q: Win rate trend?

A: Win rate has consistently gone up over the last several years.