Aramark’s QQ2 2024 results reflect a continuation of the company’s profitable growth trajectory, with organic revenue up more than 9% year over year and meaningful margin expansion driven by operating discipline and supply chain efficiencies. The company reported record second-quarter revenue and broad-based gains across segments, supported by price recovery, net new business, and inflation tailwinds. Management highlighted robust new-business momentum, including notable wins in Collegiate Hospitality, Sports & Entertainment, and corrections, alongside international strength in the UK, Germany, and Latin America. The quarter also featured strategic balance-sheet actions, including debt repricing to reduce interest expense and a plan to monetize the Spurs stake, reinforcing a constructive capital allocation stance.
Looking forward, Aramark raised its 2024 organic revenue growth target to 9% or better and reaffirmed AOI and adjusted EPS targets toward the higher end of prior guidance. The updated full-year outlook envisions AOI growth of 17-20% and adjusted EPS growth of 30-35%, with leverage around 3.5x by year-end. Management attributed the momentum to continued base business growth, higher net-new business, and inflation tailwinds that support margin progression, while cautioning that inflation and FX are key variables for the second half. The company remains focused on expanding global supply chain scale, optimizing labor and food costs, and leveraging GPO-driven savings to sustain margin upside while investing in high-return growth initiatives.
Overall, Aramark’s QQ2 performance strengthens the investment thesis centered on disciplined margin expansion, a diversified and resilient service mix, a large and growing services footprint, and an improving balance sheet that should support deleveraging and capital allocation flexibility.