Aramark Raises Revenue Outlook as Client Wins Build
Third-quarter revenue reached $5.06 billion as growth broadened across the food-services provider.
Aramark (ARMK), the food and facilities-services provider, raised its annual organic-revenue outlook after third-quarter sales growth remained firm despite an unfavorable calendar shift.
Revenue rose 9% from a year earlier, slowing from 15% in the second quarter, while organic growth eased to 9% from 12%. Excluding calendar effects, third-quarter revenue growth would have been about 11%, roughly in line with the prior quarter’s underlying pace.
GAAP earnings rose 34% to $0.36 a share, compared with 65% growth in the second quarter. Adjusted earnings increased 29% to $0.52 a share, up from $0.49 sequentially, even as its year-over-year growth rate slowed from 40%.
The U.S. food-services business generated $3.50 billion in revenue, an 8% increase, as the calendar shifted from a roughly four-percentage-point benefit in the second quarter to a headwind. International revenue climbed 13% to $1.56 billion, supported by about $33 million of currency translation.
International operations delivered the stronger profit growth. Operating income in the segment rose 40% to $69 million, while adjusted operating income increased 26% to $85 million. The respective gains in the U.S. business were 14% and 12%.
Companywide operating income increased 18% to $216 million, and adjusted operating income rose 13% to $261 million. Operating margin expanded more than 30 basis points, with the increase approaching 65 basis points when the calendar shift was excluded.
Aramark now expects fiscal 2026 organic-revenue growth of 9% to 10%, compared with its previous expectation at the high end of a 7% to 9% range. It maintained forecasts for adjusted operating-income growth of 12% to 17%, adjusted earnings growth of 20% to 25%, and leverage below three times.
New client wins exceeded $1.6 billion for the fiscal year to date, up more than $600 million from the total reported one quarter earlier. Aramark also began operating its first Texas artificial-intelligence data-center site through Aramark Nexus, mobilized a second site and added a multiyear colocation-provider agreement covering multiple locations.