Aramark’s third-quarter revenue rose 9% from a year earlier to $5.06 billion, with organic revenue also up 9%. The company said revenue growth would have been about 11% without the calendar shift tied to the 53rd week in fiscal 2025.
Operating income increased 18% to $216 million, while adjusted operating income climbed 13% to $261 million. Without the calendar shift, Aramark said operating income growth would have been about 29% and adjusted operating income growth about 21%.
Earnings per share increased sharply as well. GAAP EPS rose 34% to $0.36, while adjusted EPS increased 29% to $0.52. On a constant-currency basis, those gains would have been about 55% and 43%, respectively, the company said.
By segment, FSS United States revenue increased 8% to $3.50 billion, and FSS International revenue rose 13% to $1.56 billion. Operating income in FSS United States increased 14% to $182 million, while FSS International operating income increased 40% to $69 million. Adjusted operating income rose 12% in FSS United States to $211 million and 26% in FSS International to $85 million.
Cash generation improved in the quarter. Net cash provided by operating activities increased by $41 million, and free cash flow rose by $42 million. Aramark ended the quarter with more than $1.4 billion of cash availability and later repaid about $100 million of 2028 term loans.
The company also lifted its full-year organic revenue growth outlook to 9% to 10%, up from a prior range at the high end of 7% to 9%. It kept its full-year adjusted operating income growth outlook at 12% to 17%, adjusted EPS growth at 20% to 25%, and leverage ratio target below 3x. Following these announcements, the company's shares moved 8.22%, and are now trading at a price of $60.29. If you want to know more, read the company's complete 8-K report here.
