Vending

Aramark reports Q1 2024 earnings dip on revenue gain, surpasses expectations

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February 7, 2024

Aramark Corp. lifted its Q1 2024 revenue over the prior year period, while earnings declined, according to a press release. Highlights include:

• Revenue rose 13% from $3.91 billion in Q1 2023 to $4.41 billion in the quarter ending Dec. 29, 2023.
• U.S. food and facilities sales rose 10% from $2.92 billion to $3.21 billion, led by education, contract price increases, higher spending and attendance at stadiums, increased sports and entertainment activity and strong growth in B&I.
• International food and facilities sales rose 21% from $993 million to $1.195 billion, driven by growth in all geographies.
• Net income fell from $74.15 million to $28.53 million in the comparative quarters.
• Adjusted net income rose from $60.9 million to $108.8 million.
• EPS fell 27% from 29 cents to 11 cents on a basic basis and from 28 cents to 11 cents on a diluted basis.
• Adjusted EPS rose 33% from 23 cents to 41 cents.

Shares traded today at $29.06 against a 52-week range of $23.86 to $32.36.

The $4.41 billion in quarterly revenue beat analyst expectations by $120 million and the non-GAAP EPS of 41 cents beat expectations by 5 cents, according to Seeking Alpha.

"Aramark is off to a great start in this new fiscal year, achieving record revenue across both our FSS U.S. and international segments, along with record first quarter profit in International," CEO John Zillmer, said in the press release. "We've seen inflation continue to moderate, which provided a tailwind to profitability during the quarter."

The company expects full year organic revenue to rise 7% to 9% and adjusted EPS to rise 30% to 35%, reaching $1.16