Aramark Reports First Quarter Earnings

PHILADELPHIA--( BUSINESS WIRE)--Aramark (NYSE: ARMK) today reported first quarter fiscal 2026 results.

"We’re very pleased with the strong results delivered in the quarter, which included extraordinary client retention while continuing our momentum with significant new business,” said John Zillmer, Aramark’s Chief Executive Officer. "We firmly believe in our ability to achieve the numerous growth opportunities immediately ahead for the Company, propelled by the strategic and operational initiatives underway. Our success comes from the teams throughout the organization and around the globe who show up every day with purpose, serving with integrity, solving problems with ingenuity, and delivering consistent excellence.”

On a constant currency basis

FIRST QUARTER RESULTS

Consolidated revenue was $4.8 billion in the first quarter, a 6% increase year-over-year. The favorable effect of currency translation increased revenue by approximately $51 million. Organic revenue, which excludes the effect of currency translation, was higher by 5% compared to the same year-ago period. The calendar shift from the 53rd week in the prior year reduced revenue by an estimated 3%, principally in the FSS United States segment. Organic Revenue growth in the quarter would have been approximately 8% without the calendar shift. Growth was strengthened by both base business expansion and net new business.

Revenue

Q1 '26

Q1 '25

Change (%)

Organic Revenue

Change (%)

FSS United States

$3,362M

$3,301M

2 %

FSS International

1,469

1,251

17 %

13 %

Total Company

$4,832M

$4,552M

6 %

5 %

May not total due to rounding

Difference between Change (%) and Organic Revenue Change (%) is the effect of currency translation

Operating Income was $218 million, slightly higher than the prior year period, and AOI increased 1% 1 to $263 million. Profit growth was reduced by an estimated $25 million from the calendar shift. AOI growth in the quarter would have been approximately 11% 1 without the calendar shift. The quarter benefited from higher revenue levels, the leveraging of technology capabilities, particularly in supply chain, and disciplined organizational cost management. The effect of currency translation increased Operating Income by approximately $2 million.

Operating Income

Adjusted Operating Income (AOI)

Q1 '26

Q1 '25

Change (%)

Q1 '26

Q1 '25

Change (%)

Constant Currency Change (%)

FSS United States

$189M

$194M

(3)%

$226M

$229M

(1)%

FSS International

11%

16%

12%

Corporate

(31)

(30)

(3)%

(31)

(30)

(3)%

Total Company

$218M

$217M

0.1%

$263M

$258M

May not total due to rounding

CASH FLOW AND CAPITAL STRUCTURE

As expected, the first quarter recorded a cash outflow associated with the Company's seasonal business cadence, as well as a higher use of working capital compared to the prior year period from revenue growth. Capital expenditures were greater due to the timing of commitments associated with record new business and certain client renewals.

Aramark continued to advance its capital allocation priorities by repurchasing another $30 million of its common stock as part of the Company's share repurchase program. In addition, Aramark successfully completed a favorable repricing for its 2030 Term Loan B of $2.4 billion at lower interest rates. The new applicable interest rate reduced pricing by 25 basis points and will generate annual interest expense savings. The repricing did not change the Company’s outstanding debt amounts or maturities.

Aramark remains committed to its capital allocation strategy to invest in the business to drive and propel growth; repay debt on an ongoing basis, with leverage expected to be under 3.0x by the end of fiscal 2026; increase the dividend annually; and utilize excess cash generation to opportunistically repurchase Aramark stock.

At quarter-end, the Company had approximately $1.4 billion in cash availability.

DIVIDEND DECLARATION

Aramark's Board of Directors approved a quarterly dividend of $0.12 per share of common stock, as announced on February 4, 2026. The dividend will be payable on March 4, 2026, to stockholders of record at the close of business on February 18, 2026. As previously announced, the Board approved a 14% increase to Aramark's quarterly dividend in November 2025.

BUSINESS UPDATE

The Company is off to a great start to fiscal 2026, with momentum building across the business. New business wins were extensive in the quarter, and the Company delivered unprecedented client retention levels in both FSS United States and International—resulting in currently outpacing the run-rate to achieve Aramark's Net New Business target of 4% to 5% of prior year revenue.

The Company is highly committed to expanding its Global Supply Chain network and is actively pursuing meaningful business opportunities in hospitality categories, while continuing to benefit from increased volume and scale.

Aramark remains focused on driving profitability from its multiple operating levers, including supply chain initiatives and effective cost management. Among these strategies, AI-driven technology is enhancing the Company's supply chain capabilities, delivering back-end efficiencies and actionable business insights.

As referenced earlier, the calendar shift from the 53 rd week in the prior year is expected to benefit Revenue / Organic Revenue, Operating Income / AOI, and EPS / Adjusted EPS in the second quarter as part of the Company's results.

OUTLOOK

The Company provides its expectations for organic revenue growth, Adjusted Operating Income growth (constant currency), Adjusted Earnings per Share growth (constant currency), and Net Debt to Covenant Adjusted EBITDA ("Leverage Ratio") on a non-GAAP basis, and does not provide a reconciliation of such forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for the effect of currency translation. The fiscal 2026 outlook reflects management's current assumptions regarding numerous evolving factors that are difficult to accurately predict, including those discussed in the Risk Factors set forth in the Company's filings with the United States Securities and Exchange Commission.

Aramark continues to anticipate its full-year performance for fiscal 2026 as follows:

Fiscal 2026 Outlook

($ in millions, except Adjusted EPS and Leverage Ratio)

Fiscal 2025 Reference Point

$ Range 1

Year-over-year Organic Growth 2

Revenue

$18,180*

$19,550

—

$19,950

+7%

—

+9%

Adjusted Operating Income

$981

$1,100

—

$1,150

+12%

—

+17%

Adjusted EPS

$1.82

$2.18

—

$2.28

+20%

—

+25%

Leverage Ratio

3.25x

Under 3x

Adjusted EPS does not include the benefit from share repurchases

1Revenue $ Range includes ~$100 million of expected favorability from foreign currency translation

2Constant Currency

*For easier comparison purposes, fiscal 2025 Revenue is on a 52-week basis

“We’re well positioned for exceptional financial performance due to our growth mindset, operational discipline, and unwavering commitment to service,” Zillmer added. “Our efforts are centered on our ability to create a consistently strong and sustainable business focused on providing valued hospitality services to clients. We expect to build upon our growth momentum throughout this fiscal year and beyond. I’m extremely excited about what’s to come.”

CONFERENCE CALL SCHEDULED

The Company has scheduled a conference call at 8:30 a.m. ET today to discuss its earnings and outlook. This call and related materials can be heard and reviewed, either live or on a delayed basis, on the Company's website, www.aramark.com, on the investor relations page.

About Aramark

Aramark (NYSE: ARMK) proudly serves the world’s leading educational institutions, Fortune 500 companies, world champion sports teams, prominent healthcare providers, iconic destinations and cultural attractions, and numerous municipalities in 16 countries around the world with food and facilities management. Because of our hospitality culture, our employees strive to do great things for each other, our partners, our communities, and the planet. Learn more at www.aramark.com and connect with us on LinkedIn, Facebook, X, and Instagram.

Selected Operational and Financial Metrics

Adjusted Revenue (Organic)

Adjusted Revenue (Organic) represents revenue adjusted to eliminate the impact of currency translation.

Adjusted Operating Income

Adjusted Operating Income represents operating income adjusted to eliminate the impact of amortization of acquisition-related intangible assets and other items impacting comparability.

Adjusted Operating Income (Constant Currency)

Adjusted Operating Income (Constant Currency) represents Adjusted Operating Income adjusted to eliminate the impact of currency translation.

Adjusted Net Income

Adjusted Net Income represents net income attributable to Aramark stockholders adjusted to eliminate the impact of amortization of acquisition-related intangible assets; the effect of debt repayments and refinancings on interest expense, net, and other items impacting comparability, less the tax impact of these adjustments. The tax effect for Adjusted Net Income for our United States earnings is calculated using a blended United States federal and state tax rate. The tax effect for Adjusted Net Income in jurisdictions outside the United States is calculated at the local country tax rate.

Adjusted Net Income (Constant Currency)

Adjusted Net Income (Constant Currency) represents Adjusted Net Income adjusted to eliminate the impact of currency translation.

Adjusted EPS

Adjusted EPS represents Adjusted Net Income divided by diluted weighted average shares outstanding.

Adjusted EPS (Constant Currency)

Adjusted EPS (Constant Currency) represents Adjusted EPS adjusted to eliminate the impact of currency translation.

Covenant Adjusted EBITDA

Covenant Adjusted EBITDA represents net income attributable to Aramark stockholders adjusted for interest expense, net; provision for income taxes; depreciation and amortization and certain other items as defined in our debt agreements required in calculating covenant ratios and debt compliance. We also use Net Debt for our ratio to Covenant Adjusted EBITDA, which is calculated as total long-term borrowings less cash and cash equivalents and short-term marketable securities.

Free Cash Flow

Free Cash Flow represents net cash used in operating activities less net purchases of property and equipment and other. Management believes that the presentation of free cash flow provides useful information to investors because it represents a measure of cash flow available for distribution among all the security holders of the Company.

Net New Business

Net New Business is an internal statistical metric used to evaluate our new sales and retention performance. The calculation is defined as the annualized value of gross new business less the annualized value of lost business.

We use Adjusted Revenue (Organic), Adjusted Operating Income (including on a constant currency basis), Adjusted Net Income (including on a constant currency basis), Adjusted EPS (including on a constant currency basis), Covenant Adjusted EBITDA and Free Cash Flow as supplemental measures of our operating profitability and to control our cash operating costs. We believe these financial measures are useful to investors because they enable better comparisons of our historical results and allow our investors to evaluate our performance based on the same metrics that we use to evaluate our performance and trends in our results. These financial metrics are not measurements of financial performance under generally accepted accounting principles, or GAAP. Our presentation of these metrics has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. You should not consider these measures as alternatives to revenue, operating income, net income, earnings per share or net cash used in operating activities, determined in accordance with GAAP. Adjusted Revenue (Organic), Adjusted Operating Income, Adjusted Net Income, Adjusted EPS, Covenant Adjusted EBITDA and Free Cash Flow as presented by us may not be comparable to other similarly titled measures of other companies because not all companies use identical calculations.

Explanatory Notes to the Non-GAAP Schedules

Amortization of Acquisition-Related Intangible Assets - adjustments to eliminate the impact of amortization expense recognized on acquisition-related intangible assets.

Gains, Losses and Settlements impacting comparability - adjustments to eliminate certain transactions that are not indicative of the Company's ongoing operational performance, primarily for non-cash charges for the impairment of certain assets related to a business held-for-sale ($6.1 million for the first quarter of 2026), multiemployer pension plan withdrawal charge ($5.6 million for the first quarter of 2026), legal charges related to an antitrust review ($1.3 million for the first quarter of 2026), charges related to hyperinflation in Argentina ($0.5 million for the first quarter of 2026 and $0.7 million for the first quarter of 2025) and a charge for contingent consideration liabilities related to acquisition earn outs ($11.1 million for the first quarter of 2025).

Effect of Debt Repayments and Refinancings on Interest Expense, net - adjustments to eliminate expenses associated with the refinancings by the Company in the applicable period such as payment of third party costs ($0.7 million for the first quarter of 2026) and non-cash charges for the write-off of unamortized debt issuance costs and discounts ($0.4 million for the first quarter of 2026).

Tax Impact of Adjustments to Adjusted Net Income - adjustments to eliminate the net tax impact of the adjustments to Adjusted Net Income calculated based on a blended United States federal and state tax rate for United States adjustments and the local country tax rate for adjustments in jurisdictions outside the United States. Additionally, the adjustment reverses the valuation allowance recorded based on the Company's ability to utilize foreign tax credits ($3.4 million for the first quarter of 2026).

Effect of Currency Translation - adjustments to eliminate the impact that fluctuations in currency translation rates had on the comparative results by presenting the periods on a constant currency basis. Assumes constant foreign currency exchange rates based on the rates in effect for the prior year period being used in translation for the comparable current year period.

Forward-Looking Statements

This press release 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 under the heading "Business Update," "Outlook," and those 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 ongoing tensions in the Middle East, global supply chain disruptions, inflation, volatility and disruption of global financial markets; the impact of the 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 sufficiently 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; 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; the use of artificial intelligence technologies within our business processes; 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; risks associated with the completed spin-off of Aramark Uniform and Career Apparel as an independent publicly traded company to our stockholders; 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 25, 2025 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.

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In Thousands, Except Per Share Amounts)

Three Months Ended

January 2, 2026

December 27, 2024

Revenue

4,831,549

4,552,086

Costs and Expenses:

Cost of services provided (exclusive of depreciation and amortization)

4,415,373

4,151,232

Depreciation and amortization

125,954

113,204

Selling and general corporate expenses

72,673

70,386

Total costs and expenses

4,614,000

4,334,822

Operating income

217,549

217,264

Interest Expense, net

81,919

75,804

Income Before Income Taxes

135,630

141,460

Provision for Income Taxes

39,129

35,757

Net income

96,501

105,703

Less: Net income attributable to noncontrolling interests

340

Net income attributable to Aramark stockholders

96,161

105,619

Earnings per share attributable to Aramark stockholders:

Basic

0.37

0.40

Diluted

0.36

0.39

Weighted Average Shares Outstanding:

Basic

263,127

264,882

Diluted

266,345

268,690

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In Thousands)

January 2, 2026

October 3, 2025

Assets

Current Assets:

Cash and cash equivalents

439,633

639,095

Receivables

2,496,066

2,210,388

Inventories

414,614

418,766

Prepayments and other current assets

283,333

254,642

Total current assets

3,633,646

3,522,891

Property and Equipment, net

1,773,155

1,734,489

Goodwill

4,894,475

4,874,670

Other Intangible Assets

1,875,839

1,874,067

Operating Lease Right-of-use Assets

791,691

701,839

Other Assets

574,109

596,673

13,542,915

13,304,629

Liabilities and Stockholders' Equity

Current Liabilities:

Current maturities of long-term borrowings

36,244

31,543

Current operating lease liabilities

62,603

60,744

Accounts payable

1,279,942

1,522,747

Accrued expenses and other current liabilities

1,476,799

1,931,688

Total current liabilities

2,855,588

3,546,722

Long-Term Borrowings

6,210,899

5,374,394

Noncurrent Operating Lease Liabilities

262,639

255,305

Deferred Income Taxes and Other Noncurrent Liabilities

979,881

966,019

Redeemable Noncontrolling Interests

25,799

14,130

Total Stockholders' Equity

3,208,109

3,148,059

13,542,915

13,304,629

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In Thousands)

Three Months Ended

January 2, 2026

December 27, 2024

Cash flows from operating activities:

Net income

96,501

105,703

Adjustments to reconcile Net income to Net cash used in operating activities:

Depreciation and amortization

125,954

113,204

Asset write-downs

6,058

—

Increase in contingent consideration liability

—

11,127

Deferred income taxes

22,869

9,456

Share-based compensation expense

16,316

14,848

Changes in operating assets and liabilities

(960,712

)

(801,426

)

Payments made to clients on contracts

(101,408

)

(61,032

)

Other operating activities

12,222

20,968

Net cash used in operating activities

(782,200

)

(587,152

)

Cash flows from investing activities:

Net purchases of property and equipment and other

(120,033

)

(117,788

)

Acquisitions, divestitures and other investing activities

(33,687

)

(113,051

)

Net cash used in investing activities

(153,720

)

(230,839

)

Cash flows from financing activities:

Net proceeds/payments of long-term borrowings

207,823

170,012

Net change in funding under the Receivables Facility

625,000

525,000

Payments of dividends

(31,537

)

(27,860

)

Proceeds from issuance of common stock

3,196

11,977

Repurchase of common stock

(41,262

)

(28,576

)

Payments for contingent considerations

(27,072

)

(1,202

)

Other financing activities

(452

)

(6,653

)

Net cash provided by financing activities

735,696

642,698

Effect of foreign exchange rates on cash and cash equivalents and restricted cash

1,422

(18,960

)

Decrease in cash and cash equivalents and restricted cash

(198,802

)

(194,253

)

Cash and cash equivalents and restricted cash, beginning of period

707,144

732,613

Cash and cash equivalents and restricted cash, end of period

508,342

538,360

Balance Sheet classification

January 2, 2026

December 27, 2024

Cash and cash equivalents

439,633

484,149

Restricted cash in Prepayments and other current assets

68,709

54,211

Total cash and cash equivalents and restricted cash

508,342

538,360

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN

(Unaudited)

(In thousands)

Three Months Ended

January 2, 2026

FSS United States

FSS International

Corporate

Aramark and Subsidiaries

Revenue (as reported)

3,362,106

1,469,443

4,831,549

Operating Income (as reported)

188,748

59,790

(30,989

)

217,549

Operating Income Margin (as reported)

5.6

4.1

4.5

Revenue (as reported)

3,362,106

1,469,443

4,831,549

Effect of Currency Translation

(72

)

(51,303

)

(51,375

)

Adjusted Revenue (Organic)

3,362,034

1,418,140

4,780,174

Revenue Growth (as reported)

1.9

17.5

6.1

Adjusted Revenue Growth (Organic)

1.8

13.4

5.0

Operating Income (as reported)

188,748

59,790

(30,989

)

217,549

Amortization of Acquisition-Related Intangible Assets

25,162

6,839

—

32,001

Gains, Losses and Settlements impacting comparability

11,608

1,831

—

13,439

Adjusted Operating Income

225,518

68,460

(30,989

)

262,989

Effect of Currency Translation

(2,128

)

—

(2,125

)

Adjusted Operating Income (Constant Currency)

225,521

66,332

(30,989

)

260,864

Operating Income Growth (as reported)

(2.6

11.4

(2.8

0.1

Adjusted Operating Income Growth

(1.4

16.0

(2.8

2.1

Adjusted Operating Income Growth (Constant Currency)

(1.4

12.4

(2.8

1.3

Adjusted Operating Income Margin

6.7

4.7

5.4

Adjusted Operating Income Margin (Constant Currency)

6.7

4.7

5.5

Three Months Ended

December 27, 2024

FSS United States

FSS International

Corporate

Aramark and Subsidiaries

Revenue (as reported)

3,301,016

1,251,070

4,552,086

Operating Income (as reported)

193,719

53,685

(30,140

)

217,264

Amortization of Acquisition-Related Intangible Assets

23,859

4,625

—

28,484

Gains, Losses and Settlements impacting comparability

11,127

693

—

11,820

Adjusted Operating Income

228,705

59,003

(30,140

)

257,568

Operating Income Margin (as reported)

5.9

4.3

4.8

Adjusted Operating Income Margin

6.9

4.7

5.7

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended

January 2, 2026

December 27, 2024

Net Income Attributable to Aramark Stockholders (as reported)

96,161

105,619

Adjustment:

Amortization of Acquisition-Related Intangible Assets

32,001

28,484

Gains, Losses and Settlements impacting comparability

13,439

11,820

Effect of Debt Repricing on Interest Expense, net

1,121

—

Tax Impact of Adjustments to Adjusted Net Income

(7,168

)

(8,989

)

Adjusted Net Income

135,554

136,934

Effect of Currency Translation, net of Tax

(871

)

—

Adjusted Net Income (Constant Currency)

134,683

136,934

Earnings Per Share (as reported)

Net Income Attributable to Aramark Stockholders (as reported)

96,161

105,619

Diluted Weighted Average Shares Outstanding

266,345

268,690

0.36

0.39

Earnings Per Share Growth (as reported) %

(8.2

Adjusted Earnings Per Share

Adjusted Net Income

135,554

136,934

Diluted Weighted Average Shares Outstanding

266,345

268,690

0.51

Adjusted Earnings Per Share Growth %

—

Adjusted Earnings Per Share (Constant Currency)

Adjusted Net Income (Constant Currency)

134,683

136,934

Diluted Weighted Average Shares Outstanding

266,345

268,690

0.51

Adjusted Earnings Per Share Growth (Constant Currency) %

—

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

NET DEBT TO COVENANT ADJUSTED EBITDA

(Unaudited)

(In thousands)

Twelve Months Ended

January 2, 2026

December 27, 2024

Net Income Attributable to Aramark Stockholders (as reported)

316,936

339,605

Interest Expense, net

348,040

327,958

Provision for Income Taxes

106,958

114,858

Depreciation and Amortization

489,095

443,207

Share-based compensation expense (1)

59,936

63,746

Unusual or non-recurring losses and (gains) (2)

25,523

(22,752

)

Pro forma EBITDA for certain transactions (3)

12,688

5,151

Other (4)(5)

122,788

92,870

Covenant Adjusted EBITDA

1,481,964

1,364,643

Net Debt to Covenant Adjusted EBITDA

Total Long-Term Borrowings

6,247,143

5,919,786

Less: Cash and cash equivalents and short-term marketable securities (6)

439,633

526,953

Net Debt

5,807,510

5,392,833

Covenant Adjusted EBITDA

1,481,964

1,364,643

Net Debt/Covenant Adjusted EBITDA

3.9

4.0

(1) Represents share-based compensation expense of equity awards resulting from the application of accounting for stock options, restricted stock units, performance stock units and deferred stock unit awards.

(2) The twelve months ended January 2, 2026 represents a fiscal 2025 non-cash charge for the impairment on an equity investment ($19.5 million) and a fiscal 2026 non-cash charge for the impairment of certain assets related to a business held-for-sale ($6.1 million). The twelve months ended December 27, 2024 represents a fiscal 2024 gain from the sale of the Company's remaining equity investment in the San Antonio Spurs NBA franchise ($25.1 million) and a fiscal 2024 non-cash charge for the impairment of certain assets related to a business that was sold ($2.3 million).

(3) Represents the annualizing of net EBITDA from certain acquisitions and divestitures made during the period.

(4) "Other" for the twelve months ended January 2, 2026 includes adjustments to remove the impact attributable to the adoption of certain accounting standards that are made to the calculation in accordance with the Credit Agreement and indentures ($54.7 million), severance charges ($36.4 million), non-cash charges for the impairments of assets ($8.9 million), the impact of hyperinflation in Argentina ($5.6 million), multiemployer pension plan withdrawal charge ($5.6 million), merger and integration charges ($4.1 million), legal charges related to an antitrust review ($3.8 million) and other miscellaneous expenses.

(5) "Other" for the twelve months ended December 27, 2024 includes adjustments to remove the impact attributable to the adoption of certain accounting standards that are made to the calculation in accordance with the Credit Agreement and indentures ($52.3 million), non-cash adjustments to inventory based on expected usage ($18.2 million), charges related to a ruling on a foreign tax matter ($6.8 million), severance charges ($6.7 million), non-cash charges related to the impairment of a trade name ($3.3 million), contingent consideration expense related to acquisition earn outs, net of reversals ($2.4 million), the impact of hyperinflation in Argentina ($2.2 million), income related to non-United States governmental wage subsidies ($1.1 million) and other miscellaneous expenses.

(6) Short-term marketable securities represent held-to-maturity debt securities with original maturities greater than three months, which are maturing within one year and will convert back to cash. Short-term marketable securities are included in "Prepayments and other current assets" on the Condensed Consolidated Balance Sheets.

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

FREE CASH FLOW

(Unaudited)

(In thousands)

Three Months Ended

January 2, 2026

Net cash used in operating activities

(782,200

)

Net purchases of property and equipment and other

(120,033

)

Free Cash Flow

(902,233

)

Three Months Ended

December 27, 2024

Net cash used in operating activities

(587,152

)

Net purchases of property and equipment and other

(117,788

)

Free Cash Flow

(704,940

)

Three Months Ended

Change

Net cash used in operating activities

(195,048

)

Net purchases of property and equipment and other

(2,245

)

Free Cash Flow

(197,293

)

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ORGANIC REVENUE AND ADJUSTED OPERATING INCOME GROWTH WITHOUT THE CALENDAR SHIFT

(Unaudited)

(In thousands)

Three Months Ended

January 2, 2026

FSS United States

Aramark and Subsidiaries

Revenue (as reported)

3,362,106

4,831,549

Effect of Currency Translation

(72

)

(51,375

)

Adjusted Revenue (Organic)

3,362,034

4,780,174

Estimated Impact of Calendar Shift

114,245

123,245

Adjusted Revenue (Organic), without the calendar shift

3,476,279

4,903,419

Revenue Growth (as reported)

1.9

6.1

Adjusted Revenue Growth (Organic)

1.8

5.0

Adjusted Revenue Growth (Organic), without the calendar shift

5.3

7.7

Operating Income (as reported)

188,748

217,549

Amortization of Acquisition-Related Intangible Assets

25,162

32,001

Gains, Losses and Settlements impacting comparability

11,608

13,439

Adjusted Operating Income

225,518

262,989

Effect of Currency Translation

(2,125

)

Adjusted Operating Income (Constant Currency)

225,521

260,864

Estimated Impact of Calendar Shift

23,600

24,500

Adjusted Operating Income (Constant Currency), without the calendar shift

249,121

285,364

Operating Income Growth (as reported)

(2.6

0.1

Adjusted Operating Income Growth (Constant Currency)

(1.4

1.3

Adjusted Operating Income Growth (Constant Currency), without the calendar shift

8.9

10.8

Three Months Ended

December 27, 2024

FSS United States

Aramark and Subsidiaries

Revenue (as reported)

3,301,016

4,552,086

Operating Income (as reported)

193,719

217,264

Amortization of Acquisition-Related Intangible Assets

23,859

28,484

Gains, Losses and Settlements impacting comparability

11,127

11,820

Adjusted Operating Income

228,705

257,568

*FSS International results were largely unaffected by the calendar shift from the 53rd week in the prior year

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE WITHOUT THE CALENDAR SHIFT

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended

January 2, 2026

December 27, 2024

Net Income Attributable to Aramark Stockholders (as reported)

96,161

105,619

Adjustment:

Amortization of Acquisition-Related Intangible Assets

32,001

28,484

Gains, Losses and Settlements impacting comparability

13,439

11,820

Effect of Debt Repricing on Interest Expense, net

1,121

—

Tax Impact of Adjustments to Adjusted Net Income

(7,168

)

(8,989

)

Adjusted Net Income

135,554

136,934

Effect of Currency Translation, net of Tax

(871

)

—

Adjusted Net Income (Constant Currency)

134,683

136,934

Estimated Effect of Calendar Shift, net of Tax

18,302

—

Adjusted Net Income (Constant Currency), without the calendar shift

152,985

136,934

Earnings Per Share (as reported)

Net Income Attributable to Aramark Stockholders (as reported)

96,161

105,619

Diluted Weighted Average Shares Outstanding

266,345

268,690

0.36

0.39

Earnings Per Share Growth (as reported) %

(8.2

Adjusted Earnings Per Share (Constant Currency)

Adjusted Net Income (Constant Currency)

134,683

136,934

Diluted Weighted Average Shares Outstanding

266,345

268,690

0.51

Adjusted Earnings Per Share Growth (Constant Currency) %

—

Adjusted Earnings Per Share (Constant Currency), without the calendar shift

Adjusted Net Income (Constant Currency), without the calendar shift

152,985

136,934

Diluted Weighted Average Shares Outstanding

266,345

268,690

0.57

0.51

Adjusted Earnings Per Share Growth (Constant Currency) %, without the calendar shift

12.7