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Aramark boosts Q3 2022 revenue over 2019 levels

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August 9, 2022

Aramark Corp. lifted its Q3 2022 revenue and income over the prior year period as revenue surpassed pre-COVID fiscal 2019 levels across all three business segments, according to an earnings release. Highlights include:

Revenue rose 38% from $2.98 billion in Q3 2021 to $4.12 billion in the quarter ending July 1, 2022.
U.S. food and facilities services organic revenue increased 45% compared to the third quarter last year.
International food and facilities services grew organic revenue 49% year-over-year in the third quarter, led by new business wins and increased event activity, particularly in sports and entertainment across Europe, as well as improvement in business and industry, in both Europe and the rest of the world.
Uniform and career apparel organic revenue increased 11%, driven by rental revenue growth and strength in adjacency services.
Net income rose from $32.5 million to $40.5 million in the comparative quarters.
Basic and diluted earnings per share rose from 13 cents to 16 cents. Adjusted Q3 2022 EPS was 25 cents.
Organic revenue, which adjusts for the effect of currency translation and certain acquisitions, improved 39% year-over-year with double-digit growth in all segments.
Both consolidated revenue and organic revenue reached 103% of pre-COVID levels, a performance milestone driven by broad-based net new business, pricing and ongoing base recovery.

Shares traded today at $35.93 against a 52-week range of $28.77-$39.95.

The $4.12 billion in quarterly revenue beat analyst expectations by $310 million, while the non-GAAP EPS of 25 cents beat expectations by 1 cent, according to Seeking Alpha.

"I'm pleased to share that our fiscal third quarter results represented a significant milestone as revenue surpassed pre-COVID fiscal 2019 levels across all three business segments," CEO John Zillmer said in the press release. "We continued to accelerate net new business growth and expand margins despite the inflationary environment, which is a testament to Aramark's focus on operational excellence."

The company raised its fiscal 2022 outlook for organic revenue growth of 31% to 32% and its annualized net new business of $725 million to $775 million.