Aramark (ARMK) UBS Global Consumer and Retail Conference summary

Business performance and growth

• Achieved approximately 8% growth, at the high end of guidance, with strong retention and new business momentum in Q1.

• Anticipates 3%-4% base business growth for the full year, reflecting confidence in consumer outlook.

• Net new business target of 4%-5% is expected to be met or exceeded, supported by a robust pipeline and large recent wins.

• International and B&I segments have delivered multiple consecutive quarters of double-digit growth, with international expected to sustain this trend.

• Guidance for 2024 is 7%-9% growth, with pricing contributing about 3% and net new business 4%-5%.

Strategic initiatives and operational priorities

• Growth-oriented model implemented, focusing on scaling procurement and overhead efficiency.

• Incentive compensation realigned, with 40% tied to net new business and retention.

• Decentralized decision-making and doubled sales and retention resources to improve client satisfaction.

• Proactive account management and operating reviews have elevated retention rates to around 96%.

• M&A strategy centers on small, accretive bolt-on deals, especially in refreshment services and international premium segments.

Sector trends and market opportunities

• Healthcare sector growth driven by ability to streamline operations for large networks and recent high-profile wins like Penn Medicine and RWJBarnabas.

• Collegiate sports outsourcing remains a growth area, with increased funding needs and higher average checks due to alcohol sales.

• B&I growth supported by a portfolio approach, technology adoption, and high participation rates, with 80% of operations subsidized.

• Professional sports remains competitive, with new stadium wins like the Las Vegas Athletics and disciplined capital allocation.

• Data centers and remote services present emerging opportunities due to expertise in challenging locations.