Aramark ( NYSE: ARMK ) shares rose sharply in premarket trading on Tuesday after the company reported record revenue in 2022 after handily beating Q4 expectations.
For the quarterly report, Aramark ( ARMK ) notched $0.49 in adjusted earnings per share alongside $4.39B in revenue. The latter figure reflected a 23.7% jump from the year prior and came in $280M above the analyst consensus and aided record full-year revenue in 2022 that rose above pre-pandemic levels.
“We are extremely pleased with our performance in the fourth quarter and throughout fiscal 2022 as we delivered the highest annual revenue in Aramark’s history, a second consecutive year of record Net New Business, and ongoing margin expansion,” CEO John Zillmer said. “The strong results and multiple milestones achieved over the past year are reflective of our 'everyone sells' mindset and a testament to the work of our teams across the globe to meet and exceed the demands of our clients.”
For the 2023 fiscal year, the organic revenue is expected to grow between 11% and 13% “driven by Net New Business, pricing, and ongoing base recovery” while adjusted operating income is slated to grow 34% to 39%. Management remained confident in its ability to keep prices elevated to combat inflationary impacts in the coming year.
“Aramark continued to strategically manage the current inflationary environment by utilizing various actions available across the food, labor, and direct cost categories, and worked with clients to implement targeted pricing actions, where appropriate, to offset the impact on operational profitability,” the earnings release explained. “The Company is confident in its ability to drive continued margin progression that will ultimately exceed pre-COVID levels.”
Elsewhere, the company said it expects its spinoff of the uniform services business by the second half of the 2023 fiscal year.
Shares of the Philadelphia-based food service company rose 1.62% in premarket trading on Tuesday.
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Aramark stock rises as pricing actions help push revenue to record levels