ARMK - Earnings call transcript Q1 2025

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Operator

Good morning, and welcome to Aramark's First Quarter Fiscal 2025 Earnings Results Conference Call. My name is Tanya, and I will be your operator for today's call. [Operator Instructions] At this time, I would like to inform you that this conference is being recorded for rebroadcast. [Operator Instructions] I will now turn the call over to Felise Kissell, Senior Vice President, Investor Relations and Corporate Development. Ms. proceed. please Kissell,

Felise Kissell

welcome This and company's earnings call Jim conference John Thank we to will webcast. Tarangelo. CFO, as morning, as the be and Zillmer; you, well Aramark's hearing CEO, from

slides accompanying the website through are for are there access. and always, for call be webcast the that on available this also easy viewed can IR As

Our notice release. press forward-looking regarding statements our is included in

as Actual a be the results we other of those this will making expressed SEC report comments annual or are including those call, Form of sections uncertainties implied differ may risk risks, filings. XX-K forward-looking. result materially various and factors, and and from During that our on factors, important MD&A in discussed

these press U.S. in now We John. be found and items release turn can to will that, discussing reconciliation to the non-GAAP be GAAP I our certain IR financial our website. With measures. over will call of A

John Zillmer

for will results call, Thank today's joining year. you On morning, our share of and our Good review the the financial expectations fiscal all everyone. remainder us. for I first and Jim quarter

to your I ones safe. shareholders in we the Los wildfires and We been impacted acknowledge who loved want our by devastating friends, begin, the area. Angeles other families Before and stakeholders hope partners, have are

our operations lend to assistance these affected, Aramark's are While were to with not relief organizations wherever hearts all currently out go largely communities, can. working and we we

first our Aramark's record committed net for profitable to and combination in priorities: history. Turning In base top a the achieved through global any to our business. strategic growth of ability new we revenue in remain quarter. We drive quarter the line our first, FSS to strong performance quarter, business

measures any $XXX initiated supply grew These the new upgrading that ahead. Aramark's strength and accelerating extend shares first of first a foodservice million come FSS Moody's value-creating from previous maturities of business. increased with part current profile of recently, and discipline. testament chain to quarter. AOI record the Second, revenue debt opportunities up our Global credit proactive and AOI profitability which organic structure third, company's our our Most heels the as believe as November. announced rating, on result And is to financial base the significant efforts program we of we the growth compared $X.X leveraging X% our in in Aramark focus over quarter our in business purchased efficiency on capital lie the oversubscribed also reached to X% share net cost and strong business a billion capabilities. Aramark's repurchase refinancing to volume,

growth second We in motivated and XX%. will client And expect I the be achieve objectives and with of to of particularly beyond. both and start X%, this fiscal accomplished retention. organization, retention believe levels the to in great we're firmly year year, new revenue account 'XX accelerate new incentivized X% given net the our these to focused, wins in Across half above

now behind rates participation billion reflecting sold-out take of had advancing NFL and the micro additional opportunity proud the strong for facilities driven Eagles business X and games. the Kansas Aramark Facilities and have this hospitality, workplace in to for new corrections. I'd and increased Chiefs business portfolio opportunity and to revenue us. Moving segments. FSS providing wins the the vending U.S. Super City refreshments X%, in clients, reach quarter to the to our playoffs and experience, have teams organic plan services by to Bowl. the business market congratulate in to like changes high-profile We're changes. increased Philadelphia growth first The additional without optimization X% would meal higher experienced quarter, the these $X.X foodservice in the collegiate

we are to mentioned, including significant, remains fiscal a Our start pipeline this great new business already as year. first-time off I in And outsourcing.

additions just the extremely received our growth, ownership include increasing be helping The culinary X,XXX and performance press Michelin and ] contributed in WFBP State had partnership Indianapolis headquarters, has [ our services LifeWorks [ the and interest. lateta our we'll teams that special oval of with months, opening for successfully and events, in athletics. resume Valencia capabilities on billion per to York the General conferences New strong of few expanding client during XX% and hospitality [indiscernible] more. new Chile Canada, and in I All operations In the accolades now guests list U.K., focused state-of-the-art City, locations. restaurant much brand, the largest restaurant a Bulood commend the Spain quarter next the to our Daniel revenue wait exceeding $X.X collegiate night. International managing leading regions way. [ expanding to well ] to [ geographic opened client Dynamics, our Arizona include in want another where at an our year-over-year. about the Ireland recently with ] University, retaining Walmart's through organic and portfolio quarter We're the have region Bulood flooding great the to severe site clients occurred been we chef often added also through excited catering, New Star ] Chef with our corporate the effectively

best for Our speak defense Korea a for provided ], and an focus with private partner [ colleagues cadex services. within expand service attendees. defense nearly the practices Aramark and as in growth food government opportunity government-hosted event Korea in on-site U.K. on Aramark collaboration XX its joined the the cross-border XX,XXX outsourcing to sector on to presence team

growth a the united our across led in single-digit marketplace. to continuing study a and and to front, within reputation borders experienced once potential by revenue year-over-year, Our Chile products and build this institutions, Chile in consulting of our organic again abilities upon customized area a that develop category has substantial education presenting broader services. were the team highlighting services most conducted collaborates in integrated new portfolio. We the company strategy to the managed innovative and across named high established

Walmart included collectively the And expanding Korea scale underway. share countries in many our among build Europe, we first providing ALDI further partnership additional previously business to new Plus awarded us Chile, the is recall, in FC an and within in November, within in Home serve. ability work new quarter with client Additional with Barcelona we you'll now Argentina, we're other to wins wins, in partnership pleased announced in International that, Toyota that expanded and the

highly acquisition chain. Consultancy managed Group. expanded and with footprint nearly spend an for $X.X Quantum Quantum opportunities with and Spain, supply our we the At to Portugal, Germany serve operations and senior as Netherlands. Now restaurants, billion the globally education. global advantageous in industry on hotel entertainment, increased of supply countries, well the of to Cost within of has several living provides including many Aramark's other chain as categories portfolio purchasing first scale the quarter, addition update hospitality the end Quantum's our

fact of and 'XX. levels we services in sourced vast billion ability policy expect environment to total changes. States extremely extensive of managed business our the are continue the and strict in leveraging -- exceeds through we for and X% now fiscal we We excited portfolio, our suppliers. our highly we're remains range further protocols effectively combined GPO used the our and creation to inflation government as and menu with to with selective are $XX.X size manage includes flexibility This to that scale products in the supply us domestically market chain our X% United majority and global the and about spend that model favorable capabilities. Inflation the Our believe move across differentiated maintain provides and

the of back addition our Directors. Dillon I'd board Before the size call to to like over Board to Rick XX. Aramark's turning of increases to Jim, Rick's welcome

all turn excited all is over currently As Executive the for at On many behalf the Rick to Aramark, review and of Dollar Chairman value Rick Dollar Tree, us financial on Jim call return brings sits XX of the General Board add Rick's Lowe's. Chairman CEO at at to the Aramark as of the the to Board. operating levels and CEO you over business. of now and Board. I'll retail industry know, years and of of will of experience significant served former for a we're

James Tarangelo

and morning, everyone. good Thanks, John,

to to strategic achievements the off EPS our executing supply growth the in just year maturities business. initiating share quarter, efforts to by to growth, our is purchasing These acquisition which steps debt Europe, to financial global around reporting our company's capital increasing well chain reviewed, fiscal program. great extend are goals. and and on the commencing first and further the our momentum shareholders our the scale adjusted of as our financial We expanding line in continued a in AOI start include addition Quantum John in and This and with returning footprint as reflecting double-digit enhancing top repurchase driving flexibility our

automation costs. adding our year-over-year higher our approach success and of profitability majority year. margin currency constant of than compared ongoing constant a Results operating and for year. capabilities, focus pricing profitability in points and the strengthened AI also specifically in for business on the basis. the up leveraging volume our effective technology, on a quarter. Operating business, basis income efficiencies latest base efficiencies margin same from supply XX currency Now middle period million, XX% prior combined let's the capturing and by $XXX in the was versus more was expansion first of menu higher of the Aramark. last self-service quarter chain management basis and increasing was Adjusted clients the both including $XXX XX% up million, on income new with The to P&L speed X.X% AOI increased were

more Profitability impact international region basis growth which was of representing more AOI chain currency more period points led Germany margin approximately revenue business of Canada, of of segment XX drop-through, and Spain, improvement Valencia than quarters basis, basis the middle had cost. constant year. in segments. The of same severe the the than the reported Education last flooding driven P&L in growth improvement affecting and the and points. to of with by U.S. had basis On locations supply margin XX% offset the AOI XX of an Chile, points. Healthcare and XX% of AOI and efforts an team's XX management client growth the particularly than by AOI a to compared temporarily strong strong productivity year-over-year Turning

Turning to The was from rate million, lower of levels. prior when expense adjusted XX%. the period was the a compared income to decrease approximately year the debt remainder $XX tax statement. Interest

of resulted GAAP a the quarterly increase Our adjusted EPS of in $X.XX, an versus XX% prior currency $X.XX performance and basis. year constant EPS on of

first with Regarding we collegiate quarter due the and Hospitality. outflow as cadence, specifically to the natural cash cash seasonality consistent flow, in a our expected of normal experienced business,

improving $XX and period, from Our free cash capital. year higher working compared to earnings million was flow stronger prior the favorable

previously business. on benefits, mentioned, the acquired quarter, additional we in among first our GPO presence which, in to Quantum existing As other an us provides build Europe

leverage-neutral XXXX. expected by XX. These new We started further our loans over be $XXX a the enhance transactions shares in shares The the as date, to end on that rates. and of November. $X.X loans. steps quarter in issuing million. million million to purchase of at we replaced with our are February a and will Aramark mature repurchased we senior into have will flexibility price to million repurchasing obligations our debt notice of XXXX interest the program of share took We to $XXX actions To term repurchase of XXXX toward about are second extend part announced refinance comparable and notes also $XXX at financial term U.S. quarter billion and XXX,XXX $XX repay maturities The close

given $X.X end, financial We will up with proactively our focus structure, had At creation. quarter billion performance on in availability. with a company I'll expectations. shareholder continue our to over our cash flexibility, value capital enhance wrap the

fiscal with new as financial pleased well our fiscal the and account pipeline retention. our are are We a as client 'XX great off results to in sales to quarter. year wins on the and The we remains substantial, start in start

facilities growth. ratio year as continue that growth double-digit second to in fiscal that, 'XX lap the of between the of confident expect the half exits second and wins. revenue year, we accelerate growth remain end and XX% account revenue XX%, continue we to With revenue and for follows: Organic Xx and AOI in XX% half company's onboard by the leverage between new in fiscal of X.X%, the We growth extremely We performance between and to EPS to fiscal full the were the anticipate adjusted and resumed growth we X.X% approximately growth XX% a year. anticipate as the

week XXrd As this extra or previously a an the in includes fourth shared, quarter.

profitable to opportunities, We and strong pipeline of ahead. With deliver talent business to are Aramark significant and John? John. ability client back our retention it our the represent on that, Thank a morning. excitement of our to extremely wins bottom strategies confident to and your new will execute for I new the you the power growth account turn time growth, of and in consistently what's top high-performing line date this

John Zillmer

in to believe around globe the To and together. And the beyond conclude, we across tireless teams the still momentum the which now operator, we'll for call commitment we'll our now continue the goals, best -- believe I'm well ourselves. feel their you employees deeply to our of firmly to set questions. for we've for ahead. achieve lies I Thank we'll open turn confident business targets incredible go financial the and ability reach to these

Operator

come of Our first will Zaffino Oppenheimer. Ian Instructions] question [Operator from

Ian Zaffino

the for athletics us really discussion I've enjoyed you That would talk also -- on helpful. some the details the big one. could color a be really Maybe give at the Nebraska. like Any seen guide. you about it's there provide really about could I that. wins. Thanks out Maybe new business seems

John Zillmer

not the That's announce. Ian. that have to hear soon very really we opportunity, expect We're and and excited Thanks, ours confirmed. about to

of Board week. I think the meeting [indiscernible] is this

it's So opportunity. exciting an

know, just business us Arizona awarded rapidly. for athletics continues grow business As you to us State athletics as their the well. NCAA

we're about potential. and it's particularly growth focused the area So an on that excited

Ian Zaffino

how And or think is much And follow-up, can least here, drag you Okay. relatively at how just to the line? Great. How top risk? that us maybe more also, that potential a the for do the guess, inflation a you And tell then as exits you X then of is, preparing quick I one facility tariffs? more. about are

James Tarangelo

Yes. the about The as comment on I'll start, a X% had facilities impact and exit John well. results. will

X.X% globally, And In to about X% running X%, John inflation, terms the in about we're let of closer tariffs. U.S. I'll to on comment

John Zillmer

roughly anticipated in this carefully impact and pricing overall to increased situation a any be we cost. That's through our they're think of announced bps have engineering actions XX -- either Certainly, and or is currently certainly. taken the moderate of Yes, either we tariffs the before menu as modeled would very terms like.

on XX% is buy managed in we've the that the of total the it through material so the of company. impact effects as product of fairly in So these we and think the tariffs as see see We past. Over kinds don't things country, of having locally de a we we minimis. impact sourced

Operator

Lissie.

Unknown Analyst

more growth half. just guidance double-digit I wanted your about to on to the to dive by that's acceleration the second lapping in you're exits given of Understanding facilities a weighted XQ, in XQ get bit now? most some year, of the the have than how but then of just maybe much in XQ on you bump XXrd week, help the cadence through might we a are we versus probably the where kind

James Tarangelo

I'll ]. Lissie [ that. Sure, right. you're take And

revenue new second new strong half growth to off start retention. the the driver onboarding The be the of of year. So business. exit, will in really a big We're acceleration our of as that start strong we with the facilities lap with a a the

half. look So would the revenues for like there's about, in what we have week, which into X% that second those a Obviously, half the like for second year. year. And of good X% be visibility then again the full the we about more talked will

the are those revenue So the main drivers acceleration. of

John Zillmer

activity. confident about the feel level new high of I'll And and and we're in for just excited full our retention of we're Yes. the in the very that excited very in new about very terms that the reaffirming and account reiterate sales very achieving year the level account of levels activity numbers of

Unknown Analyst

there? of about of offset maybe know question. helpful. there to That's about that I And the I early just the you potential have think the this think on too 'XX growth in for things. on do ask XXXX do might outlook Like side impact at least it. guess, headwind. you kind of of some things. lapping you out week kind And how the as guidance of margin what XXrd organic But Got operating side

James Tarangelo

run of guide so roughly right, year so X.X% X.X%, coming at or is week. If in XXrd that rate, X% to X% you consistent the so be we've from the growth the X% zone us organic to the the growth that's will And the and 'XX. that look We're at run in rate, model right? this second that's carrying with we half of described, and rate into fiscal the year

positioning So for our again, 'XX. we're about confident

Operator

next question from the line of JPMorgan. our Andrew I And show Steinerman comes from

Andrew Steinerman

is I Jim, sure the of fiscal this double-digit are for same-day I revenue the driven the I growth? Is extra you're revenue and double-digit if in it year. quarter? week, the that the double-digit we second the about both is in the in want third catch a revenue counting about last just didn't year. basis saying very And second you're fourth make Or growth year. to revenue quarter really what double-digit just similar understand half on growth saying to half by question. of fourth Or growth? talking

James Tarangelo

Yes. the week, X.X% the to in going includes quarters, Andrew. that The on week Andrew, break is to as not that which X%. an again, said, out I'm double-digit I is growth. basis annual Yes, XXrd X.X%, XXrd embedded

quarter. be pronounced, in obviously, So it more fourth that will

be So the for fourth growth year, -- as the because yes, quarter. to higher you sort growth of than the continue year update providing of is we'll what second double-digit the quarter continues. north XXrd of But will the third the week half we're

Andrew Steinerman

just Okay. was drove revenue ask more. first And in going what and if base growth quarter X it the in What to I I'm quarter? can, the

James Tarangelo

Yes.

The X% don't from break other volume to X% was of the anything from price. and that. growth out net in We quarter, than the about So remainder new. first was

Operator

Stanley. Toni Morgan next from the line our from of question And I Kaplan comes show

Toni Kaplan

outsourcing It you sounds if have the understand for think that on trend positive some you mentioned accelerate quarters? you to or outsourcing be going I continue for very has for time. business wondering, similar had seen directionally sort think has what's outsourcing a lot longer? been a as so first-time will to wanted why you directionally, new Just pipeline, a like recent strong been well. you it have there and guess, And and continued of strong long. was I

John Zillmer

Tony. Yes. Thanks,

outsourcing it of of of First industries it similar are all, first-time in a of to a range across outsourcing. terms year seeing of and of be in We're the we seeing the very level level the prior geographies. and range

continues trend supportive a it XX So last months. to very be the it as for has

So see sign of any we slowing don't it down.

some And and these we see certainly year of for and as continued 'XX market, well. are that going to it different new balance verticals as a of into opportunities are this coming tailwind the

Operator

And the line next show Shlomo from Rosenbaum comes question from I of our Stifel.

Shlomo Rosenbaum

the John, historical last week first quarter. the the a in little I was X.X% focus to in later. business. my education was started quarter just as for on on bit the And basis, light want commentary of Growth calendar kind I question, it's more -- school think a it a

thought going and I to that bit would of as is a of And Maybe growth follow-up. little expect? So we on us just in can of kind we what a education first then you the just see I'll have underlying give can what a stronger quarter. color

James Tarangelo

Yes.

So I'll start.

from and moderate timing first in So the sector. was quarter ed there higher benefit some

net seeing really of is what you're timing think the new. I

business and So accelerate for hospitality the the of remainder in collegiate the our expect year. K-XX I'd both growth to

I timing seeing sort the historical norm. the that of being the bit than So lower little a growth think you're that's

accelerate will the we're of confident So the . that year. second in half very

John Zillmer

about kind That with yes, timing enrollment. to -- hospitality. than be so a good that have any it's else we of think with to Yes, respect continues very excited growth and we seeing collegiate changes. continue weren't But collegiate supportive trend Hospitality. serve The really, to I enrollment universities quarter-over-quarter very overall to underlying again, we're matter anything in respect more of

been largest for business other awarded and bid we're out to Arizona our associated retained state business in years. components account, of have for athletics. hospitality -- with including first was has excited XX Glide As time new account. multiple you that know, plus the It was that and

significant expect year. this ed we So in growth higher

Shlomo Rosenbaum

how But should Okay. is about just add of Great. And a talk fiscal offset how increased a that. be and in then acquisition bit more because we there? going we I kind headwind rate modeling Quantum million this this on much what should that you last the just I'm a was any trying question. wondering revenue How GPO to is about part run of really FX Can year revenue by from -- the $XXX acquisition? commentary quarter. to expect think little it if about was there's follow-up. profits maybe And by 'XX. is just to

James Tarangelo

Yes.

the on. very manage spend with revenues, a quite again, the amount to GPO proportionally that the of amount basis, we significant -- is So the you revenue spend, that low remember we take of while

So significant and expect a for I the company. or revenue we deal, that exposure really integrate not affect impact won't terms as not in year would of it's profitability the overall on first based significant our change it at all in stores

John Zillmer

value Yes, overall additional leverage a our is existing we purchasing existing the ability and adding to negotiate as the of of spend long-term discounts as deals total for received new volume spend to customers. well for that the better result as accounts globally. the our that

good So not very -- earnings, year significant a revenues. it's after and first margin to but driver of accretive the

Operator

comes And I line Neil Redburn. next the from our show of question Atlantic. Tyler from

Neil Tyler

you could understand. help on question if a I wonder margins, just please. Jim,

international mix in And obviously, bit if that the in year. framed business, whether the the the those less margin margin shed this you any different the you quarter. contributors is progress to little was a than You've could that question, in light of wonder any past the the expect different U.S. within the improvement in I on

organic But your progress the is you the didn't a I impact flooding, also basis still growth in I of margin prepared but an was faster marginal heard back growth. the impact remarks point I of business. a in there that rate International from XX holding think whether there was know mentioned that

But sort would around appreciated. if of to. So a that could aspects lots really question, talk you long-winded little that, be of bit

James Tarangelo

Yes. Sure.

at very margin again, So 'XX. the overall, last in ] X.X [ ] margins right, X.X company progress good year, advancing [ we've made fiscal

basis we're basis quarter, first points points. XX reporting last So year. XX This

of the consistency that business So margin what drove we the we're maturity along very margin been to in scale saw chain our it generating accretion and of working like in what -- benefits that sources Again, confirms and from really consistent. the what has drive and continue management with we of The model with good new accretion. and efficiencies is that P&L, costs. of QX, food I labor call supply middle

In the so or or the had of international Valencia. in terms basis so basis XX you're of margin, headwinds flooding points the XX correct, from points

So [indiscernible] to overhead. thing, point supply scale XX Their back helping is growth range. the chain, same scaling just we if basis that, as actually. scaling the that of XX organic margins you're advance for to you the opposite sort The in adjust is growth to

the a an from just of unusual flooding. it's So bit some with quarter headwinds

Operator

next comes from from our show Truist Jasper Bibb I the And question Securities. line of

Jasper Bibb

basis to something clarify the on point tariffs. margin XX from something declare Wanted impact potential --

about Mexico and of earlier. on Canada XX% or I suspended would the couple the tariffs You in past also talked the be think that Would tariff XX% days? have been include that that China on just

John Zillmer

increase not of was model in food costs, of margin that decrement. percentage terms a Yes,

from purchased thought increase bp So XX a were in Mexico, cost and China. about Canada that items to we food those

sourced close mentioned, our product locally. XX% to I As of is

produce relatively coming the small Mexico. United things fresh confined generally from a like in wintertime to in States impact it's So the

offering XX the menu recovery. again, with mitigation the actions that So days, for reduced. And to impact service any impact to be obviously design prior with freezing that kind respect would of us price either was taking or and/or next

impact the see minimis to de they're we of tariffs as anticipated total relatively company be financial to Overall, So currently performance. the

Jasper Bibb

and U.S., clear. participation I guess, potentially notable. And new drivers I there both for the ask very return Can in talk just then meant and about want was to your the what pipeline. B&I you some office of then has rates to there strength sales about That's

John Zillmer

I continues work Yes, B&I tailwind be would return to for to a say marketplace. the

many to of of to back see we are and revenue I employers the we struggling the continue source policy to continues in range implement account struggling, basis. overall in those to will -- impact cities markets do growth, people full-time our still service but rates also catering still in participation capabilities additional continue and And sector, around the both growth although think We continue on to build supply New offerings a the bringing more in that significant think new many are employees a see just high-end daily wins, York. the employers we in be a particularly like changes,

And so business, to we're we're It's excited about B&I. the results very with and pleased a great date.

Operator

UBS. question the And line from I comes show of Chan our next Josh from

Joshua Chan

within the Jim, whether kind the like Could items nicely and U.S. improved behind that there U.S. are any margins quite quarter. this onetime you talk about of the drivers

John Zillmer

wins onetime consistent compliance as profitable against the that it's time. more outlined, and That programs, and maturity continue just we've delivery chain economics, it's account terms supply strategy is become in of over our improved no items. evolve purchasing definitely to account Yes, execution continued new

of middle in P&L talked Jim management it's about. the so that the And

onetime in really improvement. So fundamentally execution included no just it's extraordinary items and margin that

Joshua Chan

are And for anything you to on -- labor of Any there? seeing of availability what terms great wash kind the and That's to front hear. kind in inflation? of up

John Zillmer

We the year we last significantly availability being over No, year as the had good. circumstances and before. improved very labor see of

in X% anticipate business about really of flexibility we continue somewhere we mitigate execution X% the labor great be great So which costs this The then availability challenges Overall organizational and is inflation labor business. that protections and a our to changes by like. thing to contracts making range. no perspective. us moderating, from give the against terms in and

And we consistent impact and as as being no well year. significant this and really labor so solid very very see

Operator

comes the question And of show line from Jefferies. from Antor our I next Harold

Harold Antor

Avendra on Stephen. the for Harold focused acquisition, Quantum the of the Hub And the sense spend all M&A over want to I GPO on is for I achieve. the company is M&A of to guess, be looking for Would there target your there. space? get the guess, much This on $XX.X year. is how spend strategy Just we remainder billion of a expect level should M&A

around Just be would helpful. any that comments

John Zillmer

that supply drive Terrific. the There's believe the growing growing power achieve we to of target level GPO. we're trying no to ability it. earnings as a chain the result other to to And continue than keep of and in

at of do make can will we business other growth. It's an M&A lines economic M&A we when perspective. space GPO So us, take opportunities really bolt-on secondary both from we that the that strategy well driver in do significant as a as to acquisitions look of a in will our anticipate for continue present themselves. for our where be top advantage will I don't opportunities but sense line

so through we're us about believe only countries in that and the we'll brings spend not expand well. through Quantum acquisition will be value additional our significant managing to services that core the capabilities the but that, as excited add And it additional

Harold Antor

I you U.S., vending market contributors called also then guess services deliver the And out as and in to the micro growth.

you're in has the comment know I quarters. on the pretty sports a been attractive past just for entertainment strategy and the doing And there. around business what So and segment

expect [indiscernible] a get the year? it for would rest how wanted to fiscal the the in just So you of quarter? remain And trended to

John Zillmer

the & first for entertainment playoffs NFL business in script, I'll to the and for we good games have very the coming have, year. the to as get Overall, a important the I We prior for quarter, Sunday mentioned our it's sports Super had very all, although a pleased the Yes, playoff and start, experienced teams Obviously, chiefs had sports with Baseball fewer than excited Major League of of to business. in Eagles the this Bowl were very us.

always there's variability what have and And I'm often the NBA and lot team and a of we that NFL on in schedules. So as teams. And operate performance top you depending arenas know, line is -- NHL performance. business sorry, playoff team drives

as significant get by keen we're has talked NCAA now teams teams. we potential, possibilities. that alcohol NCAA So of we only is sports we're supporters about And the and particularly very But excited about growth serve, serving as the for the those and bigger many approved that opportunities continue stadiums. business with to in athletics, all not bigger sale professional

We're a of for business leadership continue got on. in it. We've excited. great growth. to lots and we'll team focus it's So a runway

James Tarangelo

see just And that's segment, to use the really another for determine growth strong you business convenience services retail, we double-digit our on in we refreshment the contributing how externally. internally, B&I that Yes. quarter

are So experience. there. machines, lots of opportunities The cashless vending automated

opportunities So the it's been a company. of a and big for good of focus growth source

Operator

And from question from Mestari Jaafar I Exane. line of show Paribas BNP our the next comes

Jaafar Mestari

right. if X, got I've all that's

of new et cetera. on with there just some momentum, HX the talked detail about you've Firstly, in ramp-up accounts, good the reasons in which

should if curious momentum a building could we Around second quarter? the Just of start expect in similar QX? QX organic. X% some Or that in versus very

in on that does of you average an How up the Arizona it very Everything terms just lastly, how there. amount to compare holistic then of is year? 'XX a Is business and basically retention, And athletics. Secondly, approach on tune renewal? for have State users? Nutrition University,

was in Or that out or announced? that your extension. us of now Just curious been list accounts that's new ramp to it's had you the you would find had it already up recently new the something year for that if information

John Zillmer

of done for number it This years, state lot first a with of And decades new which pride ASU all, months. has process including Arizona go on many Well, many, would feeding. at I other many campus, a served go is and for a well of talk campus lasted many, dining about ahead as we've for serve let's required bid the a by were award -- the components athletics. ASU for we university. We've -- that and of faculty and That they to through always minute. as includes

well a -- of as retention both award. a total of this it's a significantly up contract the business go result new will value as So as the new

And so again, excited the we've very out business yesterday. that and literally found retained

to industry. about just actually of the excited we're level It in year That's With our it So year. rebid and it. lower the see like. depends overall timing this and on expirations new you'll than good last contract thing. And that is retention, of was respect wins happen activity a

years, proactively do. our This due we not are some is And for to extend normal than when we've lower even we're activity customer working always they're got of in some pleased level years, very a little rebid year, with. which rebid. So our more bit activity contracts competitors our

agreement. ahead working So we're to and our constantly customers. against extend that of list go

amount our and there. terms work also activity, quality done feel being our feel that we we efforts team very retention positioning the in current the the and good about we So of about but good that's in of of the place. have

retention So for very we our XXXX. feel overall about good

James Tarangelo

quarter, in this of exactly second in revenue we how of first in the year. planned the acceleration in where quarter we to be And the if so exactly outlook half expected second with were Yes. the the terms the

in impact. So it's an the of unusual bit year a of terms facilities

acceleration So it's revenue this we similar the I think comments. my see will the exactly yes, about be second we earlier planned a how impact. like expected, But in exactly for then third you'll year. that said, in And talked the quarter the quarter, I cadence what I

Operator

would this no to showing questions for like closing time, to remarks. further I'm call Mr. the At back in I the queue. Zillmer turn

John Zillmer

much very morning. us you everybody thank Again, joining for this

both We are thank quarter organization, all year. community efforts also I'd about world and support great And you. feel for deliver their shareholders results the forward to of analyst good our the work. want the we've the a the for all around looking to results we and of and strong to for of to continue very very delivered the employees Aramark the we'll extraordinarily like continued their pleased and with first I thank

much. very you thank So

Operator

you participating. you. concludes Thank call. for today's conference This Thank

may disconnect. now You

Aramark (ARMK) 4 Feb 252025 Q1 Earnings call transcript