Aramark lifts Q4, FY 2023 results, beats expectations

Aramark Corp. lifted its Q4 and FY 2023 sales and earnings over the prior year periods, surpassing analyst revenue expectations, according to an earnings report.

Highlights include:

• Revenue rose from $3.9 billion in Q4 2022 to $4.9 billion in the quarter ending Sept. 29, 2023.
• Net income rose from $75.4 million to $205.4 million in the comparative quarters.
• EPS rose from 29 cents to 79 cents on a basic basis and from 29 cents to 78 cents on a diluted basis.
• Adjusted EPS rose 34% to 64 cents.
• U.S. food and facility service revenue rose 10% from $2.78 billion to $3.07 billion.
• International food and facility service revenue rose 19% from $935 million to $1.13 billion.
• For the full year, revenue rose from $16.3 billion to $18.85 billion.
• Full year net income rose from $194.2 million to $673.53 million.
• Full year EPS rose from 76 cents to $2.59 on a basic basis and from 75 cents to $2.57 on a diluted basis.
• Full year adjusted EPS rose 50% to $1.70.
• Full year U.S. food and facility service revenue rose 15% from $10.03 billion to $11.72 billion.
• Full year food and facility service revenue rose 24% from $3.65 billion to $4.36 billion.

Shares traded today at $26.49 against a 52-week range of $23.95 to $45.72.

The $4.9 billion in quarterly revenue beat analyst expectations by $110 million while the non-GAAP EPS of 64 cents was in line with expectations, according to Seeking Alpha.

"This year represented a significant step forward in achieving our strategic and financial goals," John Zillmer, CEO, said in a press release "Our hospitality, field-focused culture generated a third consecutive year of strong net new business, with rising revenue and AOI (adjusted operating income) resulting in significant adjusted EPS growth."