cik0-20250328

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 28, 2025

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number: 001-36223

___________________________________________



Aramark
(Exact name of registrant as specified in its charter)
Delaware		20-8236097
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

2400 Market Street		19103
Philadelphia,	Pennsylvania
(Address of principal executive offices)		(Zip Code)

(215) 238-3000

(Registrant's telephone number, including area code)

___________________________________________

Securities registered pursuant to Section 12(b) of the Act:



Title of Each Class		Trading Symbol(s)	Name of Each Exchange on which Registered
Common Stock,	par value $0.01 per share	ARMK	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of April 25, 2025, the number of shares of the registrant's common stock outstanding is 262,070,761.


TABLE OF CONTENTS
			Page
PART I - Financial Information
	Item 1.	Financial Statements (Unaudited)	1
		Condensed Consolidated Balance Sheets	1
		Condensed Consolidated Statements of Income	2
		Condensed Consolidated Statements of Comprehensive Income	3
		Condensed Consolidated Statements of Cash Flows	4
		Condensed Consolidated Statements of Stockholders' Equity	6
		Notes to Condensed Consolidated Financial Statements	8
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20
	Item 3.	Quantitative and Qualitative Disclosure About Market Risk	28
	Item 4.	Controls and Procedures	28

PART II - Other Information
	Item 1.	Legal Proceedings	29
	Item 1A.	Risk Factors	29
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
	Item 3.	Defaults Upon Senior Securities	29
	Item 4.	Mine Safety Disclosures	29
	Item 5.	Other Information	30
	Item 6.	Exhibits	30

Table of Contents

Special Note About Forward-Looking Statements

This report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our operations, our liquidity and capital resources, the conditions in our industry and our growth strategy. In some cases, forward-looking statements can be identified by words such as "outlook," "aim," "anticipate," "have confidence," "estimate," "expect," "will be," "will continue," "will likely result," "project," "intend," "plan," "believe," "see," "look to" and other words and terms of similar meaning or the negative versions of such words. These forward-looking statements are subject to risks and uncertainties that may change at any time and actual results or outcomes may differ materially from those that we expected.

Some of the factors that we believe could affect or continue to affect our results include without limitation: unfavorable economic conditions; natural disasters, global calamities, climate change, pandemics, energy shortages, sports strikes and other adverse incidents; geopolitical events including, but not limited to, the ongoing conflict between Russia and Ukraine and the ongoing conflict in the Middle East, global supply chain disruptions, inflation, volatility and disruption of global financial markets; the impact of United States and other countries’ trade policies including the implementation of tariffs; the failure to retain current clients, renew existing client contracts and obtain new client contracts; a determination by clients to reduce their outsourcing or use of preferred vendors; competition in our industries; increased operating costs and obstacles to cost recovery due to the pricing and cancellation terms of our food and support services contracts; currency risks and other risks associated with international operations, including compliance with a broad range of laws and regulations, including the United States Foreign Corrupt Practices Act; risks associated with suppliers from whom our products are sourced; disruptions to our relationship with our distribution partners; the contract intensive nature of our business, which may lead to client disputes; the inability to hire and retain key or sufficient qualified personnel or increases in labor costs; our expansion strategy and our ability to successfully integrate the businesses we acquire and costs and timing related thereto; risks associated with the completed spin-off of Aramark Uniform and Career Apparel ("Uniform") as an independent publicly traded company to our stockholders; continued or further unionization of our workforce; liability resulting from our participation in multiemployer defined benefit pension plans; laws and governmental regulations including those relating to food and beverages, the environment, wage and hour and government contracting; liability associated with noncompliance with applicable law or other governmental regulations; new interpretations of or changes in the enforcement of the government regulatory framework; increases or changes in income tax rates or tax-related laws; potential liabilities, increased costs, reputational harm, and other adverse effects based on our commitments and stakeholder expectations relating to environmental, social and governance considerations; the failure to maintain food safety throughout our supply chain, food-borne illness concerns and claims of illness or injury; a cybersecurity incident or other disruptions in the availability of our computer systems or privacy breaches; our leverage; variable rate indebtedness that subjects us to interest rate risk; the inability to generate sufficient cash to service all of our indebtedness; debt agreements that limit our flexibility in operating our business; and other factors set forth under the headings "Part I, Item 1A Risk Factors," "Part I, Item 3 Legal Proceedings" and "Part II, Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations" and other sections of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on November 19, 2024 as such factors may be updated from time to time in our other periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov and which may be obtained by contacting Aramark's investor relations department via its website at www.aramark.com. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and in our other filings with the SEC. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, us. Forward-looking statements speak only as of the date made. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, changes in our expectations, or otherwise, except as required by law.

PART I

Item 1. Financial Statements

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except share amounts)


	March 28, 2025		September 27, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	920,455	$	672,483
Receivables (less allowances: $35,247 and $34,259)	2,231,537		2,096,928
Inventories	405,855		387,601
Prepayments and other current assets	281,919		249,550

Total current assets	3,839,766		3,406,562
Property and Equipment, net	1,649,972		1,573,193
Goodwill	4,810,085		4,677,201
Other Intangible Assets	1,899,471		1,804,602
Operating Lease Right-of-use Assets	699,306		638,659
Other Assets	590,760		574,154
	$	13,489,360	$	12,674,371
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term borrowings	$	423,803	$	964,286
Current operating lease liabilities	56,900		54,163
Accounts payable	1,135,269		1,394,007
Accrued payroll and related expenses	437,332		518,912
Accrued expenses and other current liabilities	1,130,204		1,282,842
Total current liabilities	3,183,508		4,214,210
Long-Term Borrowings	6,109,078		4,307,171
Noncurrent Operating Lease Liabilities	253,050		241,012
Deferred Income Taxes	381,741		375,378
Other Noncurrent Liabilities	528,217		490,132
Commitments and Contingencies (see Note 9)
Redeemable Noncontrolling Interests	13,696		7,494
Stockholders' Equity:
Common stock, par value $0.01 (authorized: 600,000,000 shares; issued: 307,010,556 shares and 304,285,195 shares; and outstanding: 262,779,965 shares and 263,939,983 shares)	3,070		3,043
Capital surplus	3,979,438		3,931,932
Retained earnings	349,500		239,709
Accumulated other comprehensive loss	(166,353)		(132,457)
Treasury stock (held in treasury: 44,230,591 shares and 40,345,212 shares)	(1,145,585)		(1,003,253)
Total stockholders' equity	3,020,070		3,038,974
	$	13,489,360	$	12,674,371

See notes to the condensed consolidated financial statements.

Table of Contents

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(in thousands, except per share data)


	Three Months Ended				Six Months Ended
	March 28, 2025		March 29, 2024		March 28, 2025		March 29, 2024
Revenue	$	4,279,298	$	4,199,913	$	8,831,384	$	8,607,678
Costs and Expenses:
Cost of services provided (exclusive of depreciation and amortization)	3,919,653		3,869,152		8,070,885		7,914,230
Depreciation and amortization	117,059		109,118		230,263		214,662
Selling and general corporate expenses	68,411		62,557		138,797		152,750
Total costs and expenses	4,105,123		4,040,827		8,439,945		8,281,642
Operating income	174,175		159,086		391,439		326,036

Interest Expense, net	89,704		86,377		165,508		200,939
Income Before Income Taxes	84,471		72,709		225,931		125,097
Provision for Income Taxes	22,498		19,707		58,255		43,578
Net income	61,973		53,002		167,676		81,519
Less: Net income (loss) attributable to noncontrolling interests	119		(447)		203		(466)
Net income attributable to Aramark stockholders	$	61,854	$	53,449	$	167,473	$	81,985

Earnings per share attributable to Aramark stockholders:
Basic	$	0.23	$	0.20	$	0.63	$	0.31
Diluted	$	0.23	$	0.20	$	0.62	$	0.31
Weighted Average Shares Outstanding:
Basic	264,811		262,841		264,846		262,447
Diluted	267,420		265,282		268,076		264,775

See notes to the condensed consolidated financial statements.

Table of Contents

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(in thousands)


	Three Months Ended				Six Months Ended
	March 28, 2025		March 29, 2024		March 28, 2025		March 29, 2024
Net income	$	61,973	$	53,002	$	167,676	$	81,519
Other comprehensive loss, net of tax

Foreign currency translation adjustments	14,765		(20,595)		(26,982)		(5,246)
Fair value of cash flow hedges	(19,741)		9,353		(6,914)		(28,179)

Other comprehensive loss, net of tax	(4,976)		(11,242)		(33,896)		(33,425)
Comprehensive income	56,997		41,760		133,780		48,094
Less: Net income (loss) attributable to noncontrolling interests	119		(447)		203		(466)
Comprehensive income attributable to Aramark stockholders	$	56,878	$	42,207	$	133,577	$	48,560

See notes to the condensed consolidated financial statements.

Table of Contents

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

SEC Form 10-Q filed by Aramark