Aramark reported higher fiscal fourth-quarter results on Monday as fans spent more in sports stadiums and inflation steadied, driving an 11% increase in its dividend and a forecast for earnings and revenue growth in the current year. The food, facilities, and uniform services provider's adjusted earnings rose to $0.54 a share for the quarter ended Sept.
27, up from $0.40 the year before and a penny better than the consensus on Capital IQ. Revenue rose 5% to $4.42 billion, but was just shy of the Street's view for $4.45 billion. The increase in revenue was driven by a strong base business from volume across the company's segments and prices normalizing from favorable inflation trends, mainly in education, Aramark said.
Foreign exchange was a headwind of $72 million on the top line, it said. "We reached new highs in our financial performance every quarter during fiscal 2024, ultimately achieving record revenue and adjusted operating income profitability for any year in global food and support services history," Chief Executive John Zillmer said in a statement.
The stock advanced 4.6% before the opening bell. Food and support service sales in the US rose 4% in the quarter to $3.18 billion, led by sports and entertainment amid higher spending and fan attendance in stadiums. International revenue climbed 9% to $1.24 billion with broad-based growth particularly in the UK, Germany, Canada, and South America. For fiscal 2025, Aramark anticipates adjusted EPS to increase between 23% and 28% versus the $1.55 made in the previous year.
The Street is looking for normalized EPS of $1.93. Organic revenue growth is pegged at 7.5% to 9.5% for fiscal 2025, compared with the 10% gain in the just-ended year. The company's board approved a new $500 million share repurchase program. It also increased its quarterly dividend by 11% to $0.105, payable Dec.
12 to shareholders of record on Dec. 2. "As we enter fiscal 2025, we continue to take the steps necessary to reach and surpass new levels of financial performance," Zillmer said. "Our teams have laid the groundwork to create significant new business and value-creating opportunities, and we are confident in our ability to deliver on them.".