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What changed in Aramark's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Aramark's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+298 added−314 removedSource: 10-K (2025-11-25) vs 10-K (2024-11-19)

Top changes in Aramark's 2025 10-K

298 paragraphs added · 314 removed · 236 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

51 edited+6 added−9 removed63 unchanged
Biggest changeThese filings are available to the public over the internet at the SEC's website at www.sec.gov. Our principal internet address is www.aramark.com. We make available free of charge on www.aramark.com our annual, quarterly and current reports, and amendments to those reports, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
Biggest changeWe make available free of charge on www.aramark.com our annual, quarterly and current reports, and amendments to those reports, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. 7 Table of Contents Our Business Conduct Policy includes a code of ethics for our principal executive officer, our principal financial officer and our principal accounting officer and applies to all of our employees and non-employee directors.
At sports, entertainment and recreational facilities, our clients attract patrons to their site, usually for specific events such as sporting events, concerts and conventions. We manage our business in two geographic reportable segments split between our United States and International operations.
At sports, entertainment and recreational facilities, our clients attract patrons to their site, usually for specific events such as sporting events, concerts and conventions. We manage our business in two reportable segments split between our United States and International operations.
For fiscal 2024, approximately one-third of our revenue was derived from client interest contracts. Competition There is significant competition in our business from local, regional, national and international companies, as well as from the businesses, healthcare institutions, senior living facilities, colleges and universities, correctional facilities, school districts and public assembly facilities that decide to provide these services themselves.
For fiscal 2025, approximately one-third of our revenue was derived from client interest contracts. Competition There is significant competition in our business from local, regional, national and international companies, as well as from the businesses, healthcare institutions, senior living facilities, colleges and universities, correctional facilities, school districts and public assembly facilities that decide to provide these services themselves.
Based on the knowledge of the clients' requirements and the sector, our goal is to develop solutions for the client that are unique and that help to differentiate us from our competitors. Types of Contracts We use contracts with our customers that allow us to manage our potential upside and downside risk in connection with our various business interactions.
Based on the knowledge of the clients' requirements and the outcomes, our goal is to develop solutions for the client that are unique and that help to differentiate us from our competitors. Types of Contracts We use contracts with our customers that allow us to manage our potential upside and downside risk in connection with our various business interactions.
We also provide our services on a more limited basis in several additional countries and in offshore locations. Based on total revenue in fiscal 2024, we hold a top 2 position in North America in food and facilities services and a top 3 position in food and facilities services internationally in most countries in which we have significant operations.
We also provide our services on a more limited basis in several additional countries and in offshore locations. Based on total revenue in fiscal 2025, we hold a top 2 position in North America in food and facilities services and a top 3 position in food and facilities services internationally in most countries in which we have significant operations.
We benefit from greater upside potential with a profit and loss contract, although we do consequently bear greater downside risk than with a client interest contract. For fiscal 2024, approximately two-thirds of our revenue was derived from profit and loss contracts. Client Interest Contracts.
We benefit from greater upside potential with a profit and loss contract, although we do consequently bear greater downside risk than with a client interest contract. For fiscal 2025, approximately two-thirds of our revenue was derived from profit and loss contracts. Client Interest Contracts.
Additional or amended regulations in this area may significantly increase the cost of compliance or expose us to liability. In addition, various government agencies impose nutritional guidelines and other requirements on us at certain of the healthcare, senior living, education and corrections facilities we serve.
Additional or amended regulations in this area may significantly increase the cost of compliance or expose us to liability. 6 Table of Contents In addition, various government agencies impose nutritional guidelines and other requirements on us at certain of the healthcare, senior living, education and corrections facilities we serve.
We are subject to various environmental protection laws and regulations, including the United States Federal Clean Water Act, Clean Air Act, Resource Conservation and Recovery Act, Comprehensive Environmental Response, Compensation, and 7 Table of Contents Liability Act and similar federal, state, local and international statutes and regulations governing the use, management and disposal of chemicals and hazardous materials.
We are subject to various environmental protection laws and regulations, including the United States Federal Clean Water Act, Clean Air Act, Resource Conservation and Recovery Act, Comprehensive Environmental Response, Compensation, and Liability Act and similar federal, state, local and international statutes and regulations governing the use, management and disposal of chemicals and hazardous materials.
Conversely, historically there has been a significant increase in the provision of services to sports and leisure clients during the second half of our fiscal year, which is partially offset by the effect of summer recess at colleges, universities and schools in our 4 Table of Contents educational operations.
Conversely, historically there has been a significant increase in the provision of services to sports and leisure clients during the second half of our fiscal year, which is partially offset by the effect of summer recess at colleges, universities and schools in our educational operations.
Do Well. is Aramark’s ESG platform and directly connects to our mission: Because we’re rooted in service, we do great things for our people, our partners, our communities, and our planet.
Do Well. is Aramark’s sustainability platform and directly connects to our mission: Because we’re rooted in service, we do great things for our people, our partners, our communities, and our planet.
We have established consistent tools, methodologies and trainings to efficiently support the development of our employees as they work within our individual businesses to help ensure a close connection to the business, their teammates and client partners.
Our consistent tools, methodologies and trainings to efficiently support the development of our employees as they work within our individual businesses to help ensure a close connection to the business, their teammates and client partners.
We offer our education clients a single source provider for food-related managed service solutions, including dining, catering, food service management and convenience-oriented retail operations. Healthcare. We provide a wide range of non-clinical food, food-related and facility support services to approximately 190 healthcare and senior living client families and more than 1,100 facilities (1) .
We offer our education clients a single source provider for food-related managed service solutions, including dining, catering, food service management and convenience-oriented retail operations. Healthcare. We provide a wide range of non-clinical food, food-related and facility support services to approximately 170 healthcare and senior living client families and more than 920 facilities .
As an example of these projects, members from all of Aramark's 11 employee resource groups mobilized to provide 3,890 backpacks with school supplies to students in 30 communities globally. Compensation, Benefits, Safety and Wellness. In addition to offering market competitive salaries and wages, we offer comprehensive health and retirement benefits to eligible employees.
As an example of these projects, members from all of Aramark's 11 employee resource groups mobilized to provide 4,570 backpacks with school supplies to students in 19 communities globally. Compensation, Benefits, Safety and Wellness. In addition to offering market competitive salaries and wages, we offer comprehensive health and retirement benefits to eligible employees.
In fiscal 2024, Sysco distributed approximately 45% of our food and non-food products in the United States and Canada based on purchase dollars, and we believe that we are one of their largest clients.
In fiscal 2025, Sysco distributed approximately 43% of our food and non-food products in the United States and Canada based on purchase dollars, and we believe that we are one of their largest clients.
Our approximately 266,680 employees partner with thousands of education, healthcare, business and sports, leisure & corrections clients to serve millions of customers including students, patients, employees, sports fans and guests worldwide.
Our approximately 278,390 employees partner with thousands of education, healthcare, business and sports, leisure & corrections clients to serve millions of customers including students, patients, employees, sports fans and guests worldwide.
As part of this platform, we identified priorities that align with our business objectives, with a focus on efforts to help people and our planet, as we serve our clients, employees, shareholders, and other stakeholders. Our strategic, interconnected people and planet goals convey our priorities and ambitions, focusing our efforts and inspiring our organization.
As part of this platform, we identified priorities that align with our business objectives, with a focus on efforts to help people and our planet, as we serve our clients, employees, shareholders, and other stakeholders. Our strategic pillars – focused on people, the planet, and business integrity convey our priorities and ambitions, focusing our efforts and inspiring our organization.
As of September 27, 2024, we do not anticipate any expenditures for environmental remediation that would have a material effect on our financial condition. Intellectual Property We have the patents, trademarks, trade names and licenses that are necessary for the operation of our business.
As of October 3, 2025, we do not anticipate any expenditures for environmental remediation that would have a material effect on our financial condition. Intellectual Property We have the patents, trademarks, trade names and licenses that are necessary for the operation of our business.
Conversely, historically there have been cash inflows during our fourth fiscal quarter due to an inflow of customer prepayments particularly within our Higher Education business in anticipation of the fall semester and higher activity within our sports and leisure clients. Be Well. Do Well. - Our Environmental, Social and Governance ("ESG") Platform Be Well.
Conversely, historically there have been cash inflows during our fourth fiscal quarter due to an inflow of customer prepayments particularly within our Higher Education business in anticipation of the fall semester and higher activity within our sports and leisure clients. 4 Table of Contents Be Well. Do Well. Our Sustainability Platform Be Well.
As of September 27, 2024, our subsidiaries held liquor licenses in 43 states and the District of Columbia, 3 Canadian provinces and certain other countries. Typically, liquor licenses must be renewed annually and may be revoked or suspended for cause at any time.
As of October 3, 2025, our subsidiaries held liquor licenses in 44 states and the District of Columbia, 3 Canadian provinces and certain other countries. Typically, liquor licenses must be renewed annually and may be revoked or suspended for cause at any time.
Contracts in the private sector may be entered into without a formal bid process, but we and other companies will often compete in the process leading up to the award or the completion of contract negotiations. Typically, after the award, final contract terms are negotiated and agreed upon.
Contracts in the private sector may be entered into without a formal bid process, but we and other companies will often compete in the process leading up to the award or the completion of contract negotiations.
Within the Education sector, we serve Higher Education and K-12 clients. We deliver a wide range of food and food-related services, as well as procurement services, at approximately 1,330 colleges, universities, school systems & districts and private schools.
Within the Education sector, we serve Higher Education and K-12 clients. We deliver a wide range of food and food-related services, as well as procurement services, at approximately 1,345 colleges, universities, school systems & districts and private schools worldwide, including 685 within the FSS United States segment.
Sales and Marketing We maintain selling and marketing excellence by focusing on optimizing resource allocation and deployment. We target growth by aligning our efforts directly with the sectors and services in which we operate to deliver differentiated and innovative solutions.
Sales and Marketing We maintain selling and marketing excellence by focusing on optimizing resource allocation and deployment. We target growth by collaborating across the sectors and services in which we operate to deliver differentiated value and innovative solutions.
Progress Report, the update of which will be released in early calendar 2025. Our reporting aligns with multiple frameworks and standards including the Sustainability Accounting Standards Board (SASB), the Global Reporting Initiative (GRI) and the Task Force on Climate-Related Financial Disclosures (TCFD).
Progress Report, the update of which will be released in the first half of calendar 2026. Our reporting aligns with multiple frameworks and standards including the Sustainability Accounting Standards Board (SASB), the Global Reporting Initiative (GRI), the Task Force on Climate-Related Financial Disclosures (TCFD) and the CDP (formerly the Carbon Disclosure Project) climate and forestry questionnaires.
As an example, in our FSS United States segment, in fiscal 2024, we hired over 93,000 new employees, compared to approximately 100,000 in fiscal 2023, made up of 96% hourly employees and 4% salaried employees.
As an example, in our FSS United States segment, in fiscal 2025, we hired approximately 90,000 new employees, compared to approximately 93,000 in fiscal 2024, made up of 94% hourly employees and 6% salaried employees.
We use two general contract types: profit and loss contracts and client interest contracts. These contracts differ in their provision for the amount of financial risk that we bear and, accordingly, the potential compensation, profits or fees we may receive.
Typically, after the award, final contract terms are negotiated and agreed upon. 3 Table of Contents We use two general contract types: profit and loss contracts and client interest contracts. These contracts differ in their provision for the amount of financial risk that we bear and, accordingly, the potential compensation, profits or fees we may receive.
We also serve convention and civic centers, national and state parks and other resort operations, plus other popular tourist attractions in the United States. Additionally, we provide correctional food services and operate commissaries, laundry facilities and property rooms. Facilities & Other.
We also serve convention and civic centers, national and state parks and other resort operations, plus other popular tourist attractions in the United States. Additionally, we provide correctional food services and operate commissaries, laundry facilities and property rooms. Facilities & Other. We provide a variety of support services to approximately 210 client families, which comprise of approximately 500 facilities.
We sponsor numerous training, education and leadership development programs for our employees, from hourly associates to upper levels of management, designed to enhance leadership and managerial capability, ensure quality execution of our programs, drive client satisfaction and increase return on investment. Community Engagement. Through our Aramark Building Community initiative, we create meaningful opportunities to engage and focus resources locally.
We sponsor numerous training, education and leadership development programs for our employees, from hourly associates to upper levels of management, designed to enhance leadership and managerial capability, ensure quality execution of our programs, drive client satisfaction and increase return on investment. 5 Table of Contents Community Engagement.
If we fail to comply with applicable laws, we may be subject to investigations, criminal sanctions or civil remedies, including fines, penalties, damages, reimbursement, injunctions, seizures, disgorgements, debarments from government contracts or loss of liquor licenses. 6 Table of Contents Our operations are subject to various laws and regulations, including, but not limited to, those governing: • alcohol licensing and service; • collection of sales and other taxes; • minimum wage, overtime, classification, wage payment and employment discrimination; • immigration; • governmental funded entitlement programs and cost and accounting principles; • false claims, whistleblowers and consumer protection; • environmental protection and environmental sustainability matters such as packaging and waste, greenhouse gas emissions, animal health and welfare, deforestation and land use; • food safety, sanitation, labeling and human health and safety; • customs and import and export controls; • the Foreign Corrupt Practices Act, the U.K.
Our operations are subject to various laws and regulations, including, but not limited to, those governing: • alcohol licensing and service; • collection of sales and other taxes; • minimum wage, overtime, classification, wage payment and employment discrimination; • immigration; • governmental funded entitlement programs and cost and accounting principles; • false claims, whistleblowers and consumer protection; • environmental protection and environmental sustainability matters, such as packaging and waste, greenhouse gas emissions, animal health and welfare, deforestation and land use; • food safety, sanitation, labeling and human health and safety; • customs and import and export controls; • the Foreign Corrupt Practices Act, the U.K.
Our distributors are responsible for tracking our orders and delivering products to our specific locations. Our location managers also purchase a number of items, including bread, dairy products and alcoholic beverages from local suppliers, and we purchase certain items directly from manufacturers. The terms of our agreements with our distributors vary.
Our location managers also purchase a number of items, including bread, dairy products and alcoholic beverages from local suppliers, and we purchase certain items directly from manufacturers. 2 Table of Contents The terms of our agreements with our distributors vary.
In fiscal 2024, we generated $17.4 billion of revenue, $706.5 million of operating income and $262.5 million of net income attributable to Aramark stockholders.
In fiscal 2025, we generated $18.5 billion of revenue, $791.8 million of operating income and $326.4 million of net income attributable to Aramark stockholders.
We also provide procurement services for a number of clients in a variety of industries through our Avendra and other procurement services businesses. Our FSS International segment provides a similar range of services as those provided to our FSS United States segment clients and operates in each of the sectors. We have operations in 15 countries outside the United States.
Our FSS International segment provides a similar range of services as those provided to our FSS United States segment clients and operates in each of the sectors. We have operations in 15 countries outside the United States. We also provide our services on a more limited basis in several additional countries and in offshore locations.
In fiscal 2024, our FSS United States segment generated $12,576.7 million in revenue, or 72% of our total revenue, and our FSS International segment generated $4,824.0 million in revenue, or 28% of our total revenue. No individual client represents more than 2% of our total revenue, other than, collectively, a number of United States government agencies.
In fiscal 2025, our FSS United States segment generated $13,211.9 million in revenue, or 71% of our total revenue, and our FSS International segment generated $5,294.4 million in revenue, or 29% of our total revenue. No individual client represents more than 2% of our total revenue, other than, collectively, a number of United States government agencies.
The historical results of the Uniform segment have been reflected as discontinued operations in our audited consolidated financial statements for all periods prior to the separation and distribution. Assets and liabilities associated to the Uniform segment are classified as assets and liabilities of discontinued operations in our audited Consolidated Balance Sheet as of September 29, 2023.
The historical results of the Uniform segment have been reflected as discontinued operations in our audited consolidated financial statements for all periods prior to the separation and distribution. Additional disclosures regarding the separation and distribution are provided in Note 2 to the audited consolidated financial statements.
The following chart shows a breakdown of our revenue and operating income by these reportable segments: Reportable Segments: FSS United States FSS International FY 2024 Revenue (1) : $ 12,576.7 $ 4,824.0 FY 2024 Operating Income (1) : $ 659.9 $ 187.3 (1) Dollars in millions. Operating income excludes $140.7 million related to corporate expenses.
The following chart shows a breakdown of our revenue and operating income by these reportable segments: Reportable Segments: FSS United States FSS International FY 2025 Revenue (1) : $ 13,211.9 $ 5,294.4 FY 2025 Operating Income (1) : $ 717.5 $ 193.5 (1) Dollars in millions. Operating income excludes $119.2 million related to corporate expenses.
Our facilities services capabilities are broad, and include plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping and capital project management. In governmental, business, educational and healthcare facilities (for example, offices and industrial plants, schools and universities and hospitals and senior living), our clients provide us with a captive customer base through their on-site employees, students and patients.
In governmental, 1 Table of Contents business, educational and healthcare facilities (for example, offices and industrial plants, schools and universities and hospitals and senior living), our clients provide us with a captive customer base through their on-site employees, students and patients.
We also provide our services on a more limited basis in several additional countries and in offshore locations. Our largest international operations are in Canada, Chile, China, Germany, Spain and the United Kingdom. There are particular risks associated with our international operations. Please see Item 1A.
Our largest international operations are in Canada, Chile, China, Germany, Spain, Ireland and the United Kingdom. There are particular risks associated with our international operations. Please see Item 1A.
Hiring, developing and retaining employees is critically important to our operations and we are focused on creating experiences and programs that foster growth, performance and retention. Acquiring the right talent at speed and scale is a core capability that we regularly monitor and manage, given the need to rapidly staff our frontline operations.
Acquiring the right talent at speed and scale is a core capability that we regularly monitor and manage, given the need to rapidly staff our frontline operations.
We provide a variety of support services to approximately 220 client families, which comprise of approximately 500 facilities (1) . These services include the management of housekeeping, plant operations and maintenance, energy management, custodial, groundskeeping, landscaping, transportation, capital program management, payment services and other facility consulting services relating to building operations.
These services include the management of housekeeping, plant operations and maintenance, energy management, custodial, groundskeeping, landscaping, transportation, capital program management, payment services and other facility consulting services relating to building operations. We also provide procurement services for a number of clients in a variety of industries through Avendra and other procurement services.
We serve various venues for professional (including minor league affiliates) and college sports teams, including 26 teams in Major League Baseball, the National Basketball Association, the National Football League and the National Hockey League, and for approximately 150 college and university teams.
We serve various venues for professional (including minor league affiliates) and college sports teams, including 26 teams in Major League Baseball, the National Basketball Association, the National Football League and the National Hockey League, as well as approximately 30 NCAA Division I college football stadiums and other college and university institutions, providing services to numerous individual teams within each institution.
As of September 27, 2024, our active United States employee base reflected the following gender, racial and ethnic demographic information: United States Employee Population Male Female White Diverse Black Hispanic Asian American Indian Pacific Islander 2 or more races Total 43.37 % 56.63 % 39.31 % 60.69 % 30.47 % 20.20 % 6.42 % 0.71 % 0.27 % 2.62 % Hourly Employees 42.61 % 57.39 % 36.19 % 63.81 % 32.21 % 21.20 % 6.73 % 0.72 % 0.28 % 2.67 % Salaried Employees 49.55 % 50.45 % 64.67 % 35.33 % 16.25 % 12.09 % 3.90 % 0.63 % 0.22 % 2.24 % As of September 27, 2024, 40% of our Board of Directors and 57% of our CEO's direct reports were female.
As of October 3, 2025, our active United States employee base reflected the following demographic information: United States Employee Population Male Female White Diverse Black Hispanic Asian American Indian Pacific Islander 2 or more races Total 43.5 % 56.5 % 38.3 % 61.7 % 30.9 % 21.4 % 5.7 % 0.7 % 0.3 % 2.7 % Hourly Employees 42.4 % 57.6 % 35.5 % 64.5 % 32.4 % 22.3 % 5.9 % 0.8 % 0.3 % 2.8 % Salaried Employees 53.4 % 46.6 % 64.4 % 35.6 % 16.3 % 12.5 % 3.8 % 0.4 % 0.2 % 2.4 % As of October 3, 2025, 36% of our Board of Directors and 57% of our CEO's direct reports were female.
As of September 27, 2024, we had a total of approximately 266,680 employees, including approximately 140,970 employees in FSS United States, 125,250 employees in FSS International and 460 employees in Aramark corporate staff. This total consists of approximately 27,160 management or salaried employees and approximately 239,520 frontline or hourly employees.
As of October 3, 2025, we had a total of approximately 278,390 employees, including approximately 144,240 employees in FSS United States, 133,690 employees in FSS International and 460 employees in Aramark corporate staff. This total consists of approximately 27,560 management or salaried employees and approximately 250,830 frontline or hourly employees.
Aramark also submits a disclosure annually to CDP’s (formerly the Carbon Disclosure Project) climate and forest questionnaires, with responses available publicly. You can read more about Be Well. Do Well. and broader programs and initiatives on our website (www.aramark.com/environmental-social-governance). Nothing on our website shall be deemed incorporated by reference into this Annual Report on Form 10-K.
You can read more about our Be Well. Do Well. platform on our website (www.aramark.com/environmental-social-governance). Nothing on our website shall be deemed incorporated by reference into this Annual Report on Form 10-K.
Our Business We manage a number of interrelated services, including food, hospitality, procurement and facility services, for school districts, colleges & universities, healthcare & senior living facilities, businesses, sports, entertainment & recreational venues, conference & convention centers, national & state parks and correctional institutions. 1 Table of Contents We are the exclusive provider of food and beverage services at most of the locations we serve and are responsible for hiring, training and supervising the majority of the food service personnel in addition to ordering, receiving, preparing and serving food and beverage items sold at those facilities.
Our Business We manage a number of interrelated services, including food, hospitality, procurement and facility services, for school districts, colleges & universities, healthcare & senior living facilities, businesses, sports, entertainment & recreational venues, conference & convention centers, national & state parks and correctional institutions.
As of September 27, 2024, approximately 38,000 employees in our United States and Canadian operations were covered by collective bargaining agreements. We have experienced no material interruptions of operations due to disputes with our employees. 5 Table of Contents Diversity, Equity and Inclusion.
As of October 3, 2025, approximately 39,000 employees in our United States and Canadian operations were covered by collective bargaining agreements. We have experienced no material interruptions of operations due to disputes with our employees. Global Inclusion. We are committed to furthering our culture of hospitality through actions that welcome, value, and serve all.
At the end of the contract term or upon its earlier termination, assets such as equipment and leasehold improvements typically become the property of the client, but generally the client must reimburse us for any undepreciated or unamortized capital investments. 3 Table of Contents Our contracts are generally obtained and renewed either through a competitive process or on a negotiated basis, although contracts in the public sector, including school districts and correctional clients, are frequently awarded on a competitive bid basis, as required by applicable law.
Our contracts are generally obtained and renewed either through a competitive process or on a negotiated basis, although contracts in the public sector, including school districts and correctional clients, are frequently awarded on a competitive bid basis, as required by applicable law.
We purchase most products and other items through food service distribution companies, including Sysco Corporation ("Sysco"), US Foods, Performance Food Group and other regional distributors. Sysco is our primary distributor with respect to our food and facilities business, while US Foods is our primary distributor with respect to our procurement services business.
See “Types of Contracts” below. We purchase most products and other items through food service distribution companies, including Sysco Corporation ("Sysco"), US Foods, Performance Food Group and other regional distributors. Our distributors are responsible for tracking our orders and delivering products to our specific locations.
Contractually required capital expenditures typically take the form of investments in leasehold improvements, equipment and/or grants to clients.
Contractually required capital expenditures typically take the form of investments in leasehold improvements, equipment and/or grants to clients. At the end of the contract term or upon its earlier termination, assets such as equipment and leasehold improvements typically become the property of the client, but generally the client must reimburse us for any undepreciated or unamortized capital investments.
Our people goal is to enable equity and well-being for millions of people, including our employees, customers, communities, and people in our supply chain. The "Human Capital" section below provides examples of this work. Our planet goal is to promote planetary health on our path to net zero greenhouse gas ("GHG") emissions.
Our people goal is to enable wellbeing, embed a hospitality culture, and to foster the communities we serve. The "Human Capital" section below provides examples of this work. Our planet goal is to promote planetary health with a focus on waste, climate, and circularity.
We believe that our climate-related work is intended to complement our existing commitments and integrated priorities related to operational efficiency, circularity and responsible sourcing. Our Board of Directors reviews our ESG goals and objectives, supports implementation of our ESG priorities and commitments, and oversees progress which we report in our Be Well. Do Well.
Aramark continues to work towards achieving our science-based greenhouse gas (“GHG”) reduction targets, which have been validated by the Science Based Targets Initiative ("SBTi"). Our Board of Directors reviews our Be Well. Do Well. goals and objectives, supports implementation of our priorities and commitments, and oversees progress which we report in our Be Well. Do Well.
Aramark was also named one of the "Best Places to Work for Disability Inclusion," for the eight consecutive year, by the 2024 Disability Equality Index®, earning a top score of 100%. Talent Acquisition, Development and Retention.
In the United States we have more than 90 people engagement champions focused on supporting market and regional initiatives that support our frontline associates. This year, Aramark was named one of the “Best Places to Work for Disability Inclusion,” for the ninth consecutive year, by Disability:IN’s 2025 Disability Index®, earning a top score of 100%.
In fiscal 2024, over 9,000 employees volunteered to host and participate in 475 service projects supporting more than 1,000 nonprofit organizations. These efforts benefited community members in 234 cities across 12 countries worldwide.
Through our Aramark Building Community initiative, we create meaningful opportunities to engage and focus resources locally. In fiscal 2025, nearly 8,000 employees volunteered to host and participate in 380 service projects benefiting community members in 200 cities across 13 countries. Over the last 10 years, Aramark Building Community has supported more than 1,400 nonprofit organizations.
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Additional disclosures regarding the separation and distribution are provided in Note 2 to the audited consolidated financial statements.
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We are the exclusive provider of food and beverage services at most of the locations we serve and are responsible for hiring, training and supervising the majority of the food service personnel in addition to ordering, receiving, preparing and serving food and beverage items sold at those facilities.
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See “Types of Contracts” (1) In fiscal 2024, management began reporting healthcare facility services within “Healthcare," whereas healthcare facility services were previously reported within "Facilities & Other." As such, client families and facilities previously included within “Facilities & Other" are now reflected within "Healthcare." 2 Table of Contents below.
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Our facilities services capabilities are broad, and include plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping and capital project management.
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In 2023, Aramark secured science-based GHG reduction targets validated by the Science Based Targets Initiative ("SBTi"). These targets include near-term targets to significantly reduce emissions in direct operations and supply chain and a commitment to reach net zero GHG emissions across the enterprise by fiscal 2050.
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Equal employment opportunity practices driven by merit, performance, and skill are core to how we define inclusion. We have 11 employee resource groups consisting of more than 5,000 employees across 15 countries. Our employee resource groups are open to all employees.
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As a result of being rooted in service, we do great things for our people, our partners, our communities and our planet. We believe that it is vital to align our diversity, equity and inclusion priorities with our business strategy.
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Aramark was also named one of “America’s Greatest workplaces for Diversity” for 2025 by Newsweek. Talent Acquisition, Development and Retention. Hiring, developing and retaining employees is critically important to our operations and we are focused on creating experiences and programs that foster growth, performance and retention.
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Continuing to increase diversity in executive and all levels of the leadership pipeline remains an organizational priority for the coming years. In fiscal 2024, consistent with fiscal 2023, we established ESG goals for our executive leadership team reflective of this priority, and we continue to make advancements toward these goals.
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If we fail to comply with applicable laws, we may be subject to investigations, criminal sanctions or civil remedies, including fines, penalties, damages, reimbursement, injunctions, seizures, disgorgements, debarments from government contracts or loss of liquor licenses.
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We have 11 active employee resource groups, supporting women, racially and ethnically diverse employees, the LGBTQ+ community, veterans, individuals with disabilities, interfaith community, and dietitians and other health and wellness professionals. These groups have 54 local hubs across the United States and international markets and play a key role in creating a culture of inclusion.
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These filings are available to the public over the internet at the SEC's website at www.sec.gov. Our principal internet address is www.aramark.com.
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For 2024, Aramark ranked #29 on Fair360's (formerly DiversityInc) 2024 Top 50 Companies list, up 11 spots from 2023. This is the eighth consecutive year Aramark appeared on the Top 50 list. For the first time, we were also ranked on the Top Companies for Black Executives list by Fair360.
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We may also be subject to laws and regulations that limit or restrict the use of trans fats in the food we serve or other requirements relating to ingredient or nutrient labeling.
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Our Business Conduct Policy includes a code of ethics for our principal executive officer, our principal financial officer and our principal accounting officer and applies to all of our employees and non-employee directors.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

71 edited+15 added−10 removed145 unchanged
Biggest changeIf revenue does not exceed costs under a contract that contains minimum guaranteed payments, we will bear any losses which are incurred, as well as the guaranteed payment. Generally, our contracts also limit our ability to raise prices on the food, beverages and merchandise we sell within a particular facility without the client's consent.
Biggest changeSome of our contracts contain minimum guaranteed remittances to our client regardless of our revenue or profit at the facility, typically contingent on certain future events. If revenue does not exceed costs under a contract that contains minimum guaranteed payments, we will bear any losses which are incurred, as well as the guaranteed payment.
There are many factors that could reduce the number of events in a facility, attendance at an event or decrease attendees’ discretionary income, including pandemics and other health crises, labor disruptions involving sports leagues, poor performance by the teams playing in a facility, number of playoff games, short-term weather conditions or more prolonged climate change-related conditions and adverse economic conditions which would adversely affect revenue and profits.
There are many factors that could reduce the number of events in a facility or attendance at an event or decrease attendees’ discretionary income, including pandemics and other health crises, labor disruptions involving sports leagues, poor performance by the teams playing in a facility, number of playoff games, short-term weather conditions or more prolonged climate change-related conditions and adverse economic conditions, which would adversely affect revenue and profits.
Changes or new interpretations in, or changes in the enforcement of, the statutory or regulatory framework applicable to services provided under government contracts or bidding procedures, including an adverse change in government spending policies or appropriations, budget priorities or revenue levels could result in fewer new contracts or contract renewals, modifications to the methods we apply to price government contracts, or in contract terms of shorter duration than we have historically experienced.
Changes to, new interpretations in, or changes in the enforcement of, the statutory or regulatory framework applicable to services provided under government contracts or bidding procedures, including an adverse change in government spending policies or appropriations, budget priorities or revenue levels could result in fewer new contracts or contract renewals, modifications to the methods we apply to price government contracts, or in contract terms of shorter duration than we have historically experienced.
A failure to maintain food safety throughout our supply chain and food-borne illness concerns, and risks relating to allergens, may result in reputational harm and claims of illness or injury that could adversely affect us. Food safety is a top priority for us and we dedicate substantial resources to ensuring that our customers enjoy safe, quality food products.
A failure to maintain food safety throughout our supply chain, food-borne illness concerns, and risks relating to allergens, may result in reputational harm and claims of illness or injury that could adversely affect us. Food safety is a top priority for us, and we dedicate substantial resources to ensuring that our customers enjoy safe, quality food products.
Our systems and the systems of our vendors and other third parties are subject to damage or interruption from power outages, computer or telecommunication failures, computer viruses, catastrophic events and implementation delays or difficulties, as well as usage errors by our employees or third-party service providers.
Our systems and the systems of our vendors and other third parties are subject to damage or interruption from power or service outages, computer or telecommunication failures, computer viruses, catastrophic events and implementation delays or difficulties, as well as usage errors by our employees or third-party service providers.
If interest rates increase and we do not hedge such variable rates, our debt service obligations on the variable rate indebtedness will increase even though the amount borrowed will remain the same, which will negatively impact our net income and operating cash flows, including cash available for servicing our indebtedness. 18 Table of Contents Additionally, our ability to refinance portions of our indebtedness in advance of their maturity dates depends on securing new financing bearing interest at rates that we are able to service.
If interest rates increase and we do not hedge the variable rates, our debt service obligations on the variable rate indebtedness will increase even though the amount borrowed will remain the same, which will negatively impact our net income and operating cash flows, including cash available for servicing our indebtedness. 18 Table of Contents Additionally, our ability to refinance portions of our indebtedness in advance of their maturity dates depends on securing new financing bearing interest at rates that we are able to service.
Food prices can fluctuate as a result of permanent or temporary changes in supply, including as a result of incidences of severe weather such as droughts, heavy rains and late freezes or climate change, natural disasters or pandemics, geopolitical conflicts or to the extent we are unable to negotiate favorable terms on volume discounts, rebates or other applicable credits with our suppliers.
Food prices can fluctuate as a result of permanent or temporary changes in supply, including as a result of incidences of severe weather such as droughts, heavy rains and late freezes or climate change, natural disasters or pandemics, tariffs, geopolitical conflicts or to the extent we are unable to negotiate favorable terms on volume discounts, rebates or other applicable credits with our suppliers.
These systems are also vulnerable to an increasing threat of rapidly evolving cyber-based attacks, including malicious software, attempts to gain unauthorized access to data, including through phishing emails, attempts to fraudulently induce employees or others to disclose information, the exploitation of software and operating vulnerabilities and physical device tampering/skimming at card reader units.
These systems are also vulnerable to an increasing threat of rapidly evolving cyber-based attacks, including malicious software, ransomware, attempts to gain unauthorized access to data, including through phishing emails, attempts to fraudulently induce employees or others to disclose information, the exploitation of software and operating vulnerabilities and physical device tampering/skimming at card reader units.
These risks may be exacerbated by the current economic environment, due to, among other things, increased cost pressure at our clients, tight labor markets and heightened competition. In addition, consolidation by our clients in the industries we serve could result in our losing business if the combined entity chooses a different provider.
These risks may be exacerbated by the current economic environment, due to, among other things, increased cost pressure at our clients, heightened tariffs, tight labor markets and heightened competition. In addition, consolidation by our clients in the industries we serve could result in our losing business if the combined entity chooses a different provider.
In addition, the rapid evolution and increased adoption of artificial intelligence technologies may also heighten our risks by making cyber-attacks more difficult to detect, contain and mitigate. As a result, we and such third parties may be unable to anticipate these techniques or to implement adequate preventative measures.
In addition, the rapid evolution and increased adoption of artificial intelligence (“AI”) technologies may also heighten our risks by making cyber-attacks more difficult to detect, contain and mitigate. As a result, we and such third parties may be unable to anticipate these techniques or to implement adequate preventative measures.
There can be no assurance that we are in full compliance with all applicable laws and regulations at all times, in particular as we offer more innovative and broad service offerings, or that we will be able to comply with any future laws and regulations. Furthermore, legislation and regulatory attention to food safety is very high.
There can be no assurance that we are in full compliance with all applicable laws and regulations at all times, in particular as we offer innovative and broad service offerings, or that we will be able to comply with any future laws and regulations. Furthermore, legislation and regulatory attention to food safety is very high.
We serve alcoholic beverages at many facilities, including at college stadiums, and offer more innovative services, such as self-service options, and must comply with applicable licensing laws, as well as state and local service laws, commonly called dram shop statutes in the United States.
We serve alcoholic beverages at many facilities, including at college stadiums, and offer innovative services, such as self-service options, and must comply with applicable licensing laws, as well as state and local service laws, commonly called dram shop statutes in the United States.
National and international economic downturns have, and in the future could, reduce demand for our services in each of our reportable segments, resulting in the loss of business or increased pressure to contract for business on less favorable terms than our generally preferred terms.
National and international economic downturns have reduced, and in the future could reduce demand for our services in each of our reportable segments, resulting in the loss of business or increased pressure to contract for business on less favorable terms than our generally preferred terms.
Increasing demands from clients, customers and other stakeholders relating to sustainability, including that we set reduced emissions, waste and other sustainability targets and take actions to meet them, also could result in increased costs for business.
Demands from clients, customers and other stakeholders relating to sustainability, including that we set reduced emissions, waste and other sustainability targets and take actions to meet them, also could result in increased costs for business.
While we have continued to modify our business model in response to the current environment, including proactively managing inflation and global supply chain disruption, through supply chain initiatives and by implementing pricing pass-throughs, as appropriate, to cover incremental costs, there is no guarantee that we will be able to continue to do so successfully or on comparable terms in the future if supply chain disruptions continue or worsen.
While we have continued to modify our business model in response to the current environment, including proactively managing inflation, heightened tariffs, and global supply chain disruption, through supply chain initiatives and by implementing pricing pass-throughs, as appropriate, to cover incremental costs, there is no guarantee that we will be able to continue to do so successfully or on comparable terms in the future if supply chain disruptions continue or worsen.
We are subject to governmental regulation at the federal, state, international, national, provincial and local levels in many areas of our business, such as employment laws, wage and hour laws, discrimination laws, immigration laws, human health and safety laws, import and export controls and customs laws, environmental laws, ESG-related non-financial disclosure laws, false claims or whistleblower statutes, minority, women and disadvantaged business enterprise statutes, tax codes, antitrust and competition laws, consumer protection statutes, procurement regulations, intellectual property laws, supply chain laws, food safety, labeling and sanitation laws, government funded entitlement programs, government assistance programs, cost and accounting principles, the Foreign Corrupt Practices Act, the U.K.
We are subject to governmental regulation at the federal, state, international, national, provincial and local levels in many areas of our business, such as employment laws, wage and hour laws, discrimination laws, immigration laws, human health and safety laws, import and export controls and customs laws, environmental laws, environmental, social and governance related non-financial disclosure laws, false claims or whistleblower statutes, minority, women and disadvantaged business enterprise statutes, tax codes, antitrust and competition laws, consumer protection statutes, procurement regulations, intellectual property laws, supply chain laws, food safety, labeling and sanitation laws, government funded entitlement programs, government assistance programs, cost and accounting principles, the Foreign Corrupt Practices Act, the U.K.
In the past, due to more geographically isolated natural disasters, such as wildfires in the western United States and hurricanes and extreme cold conditions in the southern United States, we experienced lost and closed client locations, business disruptions and delays, the loss of inventory and other assets, asset impairments and the effect of the temporary conversion of a number of our client locations to provide food and shelter to those left homeless by storms.
Recently, due to more geographically isolated natural disasters, such as wildfires in the western United States and hurricanes and extreme cold conditions in the southern United States, we experienced lost and closed client locations, business disruptions and delays, the loss of inventory and other assets, asset impairments and the effect of the temporary conversion of a number of our client locations to provide food and shelter to those left homeless by storms.
Changes in, new interpretations of or changes in the enforcement of the governmental regulatory framework may affect our contracts and contract terms and may reduce our revenue or profits.
Changes to, new interpretations of or changes in the enforcement of the governmental regulatory framework may affect our contracts and contract terms and may reduce our revenue or profits.
We are increasingly utilizing information technology systems, including with respect to administrative functions, financial and operational data, ordering, point-of-sale processing and payment and the management of our supply chain, to enhance the efficiency of our business and to improve the overall experience of our customers.
We are increasingly utilizing and relying upon information technology systems, including with respect to administrative functions, financial and operational data, ordering, point-of-sale processing and payment and the management of our supply chain, to enhance the efficiency of our business and to improve the overall experience of our customers.
In addition, we typically incur substantial start-up and operating costs and experience lower profit margin and operating cash flows in connection with the establishment of new business, and in periods with higher rates of new business, we have experienced and expect to continue to experience negative impact to our profit margin and our cash flows.
Moreover, we typically incur substantial start-up and operating costs and experience lower profit margin and operating cash flows in connection with the establishment of new business, and in periods with higher rates of new business, we have experienced and expect to continue to experience negative impact to our profit margin and our cash flows.
In these cases, unions typically seek to prevent public sector entities from outsourcing and if that fails, ensure that jobs that are outsourced continue to be unionized, which can reduce our pricing and operational flexibility with respect to such businesses.
In these cases, unions typically seek to prevent public sector entities from outsourcing and if that fails, ensure that jobs that are outsourced continue to be unionized, which can reduce our profitability and operational flexibility with respect to such businesses.
Any difficulty we may encounter in hiring such workers, immigration policies and general labor shortages, could result in significant increases in labor costs, which could have a material adverse effect on our business, financial condition and results of operations.
Any difficulty we may encounter in hiring such workers, including as a result of immigration policies and general labor shortages, could result in significant increases in labor costs which could have a material adverse effect on our business, financial condition and results of operations.
The rapid development and integration of artificial intelligence ("AI") technologies into our processes presents several risks to our business. The use of AI technologies within our business processes must be managed effectively and ethically to avoid outputs that are false, biased, or inconsistent with our values and strategies.
The rapid development and integration of AI technologies into our processes presents several risks to our business. The use of AI technologies within our business processes must be managed effectively and ethically to avoid outputs that are false, biased, or inconsistent with our values and strategies.
Continued or further unionization of our workforce may increase our costs and work stoppages could damage our business. Approximately 38,000 employees in our United States and Canadian operations were represented by unions and covered by collective bargaining agreements.
Continued or further unionization of our workforce may increase our costs and work stoppages could damage our business. Approximately 39,000 employees in our United States and Canadian operations were represented by unions and covered by collective bargaining agreements.
In addition, we or such third parties may decide to upgrade existing information technology systems from time to time to support the needs of our business and growth strategy and the risk of system disruption is increased when significant system changes are undertaken. 16 Table of Contents We maintain a global cybersecurity program aligned with the National Institute of Standards and Technology Cybersecurity Framework.
In addition, we or such third parties may decide to upgrade existing information technology systems from time to time to support the needs of our business and growth strategy and the risk of system disruption is increased when significant system changes are undertaken. We maintain a global cybersecurity program aligned with the National Institute of Standards and Technology Cybersecurity Framework.
Due to the labor intensive nature of our businesses and the fact that historically approximately two-thirds of our revenue is from profit and loss contracts under which we have limited ability to pass along cost increases, a shortage of labor or increases in wage levels in excess of normal levels could have a material adverse effect on our results of operations.
Due to the labor-intensive nature of our businesses and the fact that historically approximately two-thirds of our revenue has been from profit and loss contracts under which we have limited ability to pass along cost increases, a shortage of labor or increases in wage levels in excess of normal levels could have a material adverse effect on our results of operations.
Unfavorable fluctuations in foreign currency exchange rates have had, and could in the future continue to have, an adverse effect on our results of operations. 11 Table of Contents Local labor and employment laws in countries outside of the United States can make it more difficult and costly to reduce labor costs in connection with decreases in demand for our services.
Unfavorable fluctuations in foreign currency exchange rates have had, and could in the future continue to have, an adverse effect on our results of operations. Local labor and employment laws in countries outside of the United States can make it more difficult and costly to reduce labor costs in connection with decreases in demand for our services.
In particular, new federal, state, local or international laws and regulations related to ESG disclosures (including, but not limited to, the EU Corporate Sustainability Reporting Directive and California's Climate Accountability Package), climate change (including, but not limited to, certain requirements relating to the disclosure of greenhouse gas emissions and associated business risks), single use plastics and disposable packaging and food waste, could affect our operations or result in significant additional expense and operating restrictions on us.
In particular, federal, state, local or international laws and regulations related to environmental, social and governance ("ESG") disclosures (including, but not limited to, the EU Corporate Sustainability Reporting Directive and California's Climate Accountability Package), climate change (including, but not limited to, certain requirements relating to the disclosure of greenhouse gas emissions and associated business risks), single use plastics and disposable packaging and food waste, could affect our operations or result in significant additional expense and operating restrictions on us.
This degree of leverage could have important consequences, including: • exposing us to the risk of increased interest rates as certain of our borrowings, including borrowings under our senior secured credit facilities and our Receivables Facility, are at variable rates of interest; • making it more difficult for us to make payments on our indebtedness; • increasing our vulnerability to general economic and industry conditions; • requiring a substantial portion of cash flow from operations to be dedicated to the payment of principal and interest on our indebtedness, thereby reducing our ability to use our cash flow to fund our operations, capital expenditures and future business opportunities; • restricting us from making strategic acquisitions or causing us to make non-strategic divestitures; • limiting our ability to obtain additional financing for working capital, capital expenditures, debt service requirements, acquisitions and general corporate or other purposes; • limiting our ability to adjust to changing market conditions and placing us at a competitive disadvantage compared to our competitors who are less highly leveraged; and • limiting our ability to benefit from tax deductions for such payments under certain interest expense limitation rules included in the Tax Cuts and Jobs Act of 2017 and pursuant to similar regulations in other countries.
This degree of leverage could have important consequences, including: • exposing us to the risk of increased interest rates as certain of our borrowings, including borrowings under our senior secured credit facilities and our Receivables Facility, are at variable rates of interest; • making it difficult for us to make payments on our indebtedness; • increasing our vulnerability to general economic and industry conditions; • requiring a substantial portion of cash flow from operations to be dedicated to the payment of principal and interest on our indebtedness, thereby reducing our ability to use our cash flow to fund our operations, capital expenditures and future business opportunities; • restricting us from making strategic acquisitions or causing us to make non-strategic divestitures; • limiting our ability to obtain additional financing for working capital, capital expenditures, debt service requirements, acquisitions and general corporate or other purposes; • limiting our ability to adjust to changing market conditions and placing us at a competitive disadvantage compared to our competitors who are less highly leveraged; and • limiting our ability to benefit from tax deductions for such payments under certain interest expense limitation rules included in the Tax Cuts and Jobs Act of 2017 as amended by the One Big Beautiful Bill Act of 2025 and pursuant to similar regulations in other countries.
Our ability to find qualified suppliers who meet our standards, including with respect to requirements around sustainably-sourced food and other products; human rights; and to access raw materials and finished products in a timely and efficient manner is a challenge, especially with respect to suppliers located and goods sourced outside the United States and other countries in which we operate.
Our ability to find qualified suppliers who meet our standards, including with respect to requirements around sustainably-sourced food and other products; human rights; and to timely and efficiently access raw materials and finished products is a challenge, especially with respect to suppliers located and goods sourced outside the United States and other countries in which we operate.
Bribery Act and other anti-corruption law compliance matters, as well as cybersecurity, data protection, corporate sustainability reporting and supply chain laws; potential difficulties in staffing and labor disputes; differing local labor laws; managing and obtaining support and distribution for local operations; credit risk or financial condition of local clients; potential imposition of restrictions on investments; potentially adverse tax consequences, including imposition or increase of withholding, VAT and other taxes on remittances and other payments by subsidiaries; foreign exchange controls; energy shortages; local political and social conditions; geopolitical tensions, including, for example, tensions between the United States and China or overall global volatility; and the ability to comply with terms of government assistance programs.
Bribery Act and other anti-corruption laws, as well as cybersecurity, data protection, corporate sustainability reporting and supply chain laws; potential difficulties in staffing and labor disputes; differing local labor laws; managing and obtaining support and distribution for local operations; credit risk or financial condition of local clients; potential imposition of restrictions on investments; potentially adverse tax consequences, including imposition or increase of withholding, VAT and other taxes on remittances and other payments by subsidiaries; foreign exchange controls; trade disputes and heightened tariffs; energy shortages; local political and social conditions; geopolitical tensions, including, for example, tensions between the United States and China or overall global volatility; and the ability to comply with terms of government assistance programs.
Our business is contract intensive and may lead to client disputes. Our business is contract intensive and we are parties to many contracts with clients all over the world. Our client interest contracts provide that client billings, and for some contracts the sharing of profits and losses, are based on our determinations of costs of service.
Our business is contract intensive and we are parties to many contracts with clients all over the world. Our client interest contracts provide that client billings, and for some contracts the sharing of profits and losses, are based on our determinations of costs of service.
Additionally, as a global company we are subject to laws, rules and regulations regarding cross-border data flows, which have increased complexity regarding transferring data from a number of countries to the United States. These recent developments require us to review and amend the legal mechanisms by which we make and receive such cross-border personal data transfers.
Additionally, as a global company we are subject to laws, rules and regulations regarding cross-border data flows, which have increased complexity regarding transferring data from a number of countries to the United States. These developments require us to review and amend the legal mechanisms by which we make and receive such cross- 16 Table of Contents border personal data transfers.
We may, in the future, be required to expend material amounts to rectify the consequences of any such events. 17 Table of Contents In addition, changes to environmental laws may subject us to additional costs or cause us to change aspects of our business.
We may, in the future, be required to expend material amounts to rectify the consequences of any such events. In addition, changes to environmental laws may subject us to additional costs or cause us to change aspects of our business.
Contract terms under which we base these determinations and, for certain government contracts, regulations governing our cost determinations, may be subject to differing interpretations which could result in disputes with our clients 12 Table of Contents from time to time. Clients generally have the right to audit our contracts, and we periodically review our compliance with contract terms and provisions.
Contract terms under which we base these determinations and, for certain government contracts, regulations 12 Table of Contents governing our cost determinations, may be subject to differing interpretations, which could result in disputes with our clients from time to time. Clients generally have the right to audit our contracts.
We, along with many governments, regulators, investors, employees, clients, customers and other stakeholders, are increasingly focused on ESG and sustainability considerations relating to our business, including greenhouse gas emissions, single-use plastics, food waste, human and civil rights, animal welfare and diversity, equity and inclusion.
We, along with many governments, regulators, investors, employees, clients, customers and other stakeholders, are focused on ESG and sustainability considerations relating to our business, including greenhouse gas emissions, single-use plastics, food waste, human and civil rights, animal welfare and global inclusion.
Natural disasters, global calamities, climate change, political unrest, geopolitical conflicts, energy shortages, sports strikes and other adverse incidents beyond our control could adversely affect our revenue and operating results.
Natural disasters and extreme weather events, global calamities, climate change, political unrest, geopolitical conflicts, energy shortages, sports strikes and other adverse incidents beyond our control could adversely affect our revenue and operating results.
Any terrorist attacks or incidents prompted by political unrest, particularly at venues that we serve, and the national and global military, diplomatic and financial response to such attacks or other threats, also may adversely affect our revenue and operating results.
Any terrorist attacks or 9 Table of Contents incidents prompted by political unrest, particularly at venues that we serve, and the national and global military, diplomatic and financial response to such attacks or other threats, also may adversely affect our revenue and operating results.
In addition, the operating results of our non-United States subsidiaries are translated into United States dollars and those results are affected by movements in foreign currencies relative to the United States dollar.
In addition, the operating results of our non-United States subsidiaries are translated into United States dollars and those results 11 Table of Contents are affected by movements in foreign currencies relative to the United States dollar.
Our international business faces risks that could have an effect on our results of operations and financial condition. A significant portion of our revenue is derived from international business. During fiscal 2024, approximately 28% of our revenue was generated outside of the United States.
Our international business faces risks that could have an effect on our results of operations and financial condition. A significant portion of our revenue is derived from our international business. During fiscal 2025, approximately 29% of our revenue was generated outside of the United States.
Sysco, which distributed approximately 45% of our food and non-food products in the United States and Canada in fiscal 2024 based on purchase dollars, and other distributors are responsible for tracking our orders and delivering products to our specific locations.
Sysco, which distributed approximately 43% of our food and non-food products in the United States and Canada in fiscal 2025 based on purchase dollars, and other distributors are responsible for tracking our orders and delivering products to our specific locations.
Natural disasters, including hurricanes, earthquakes and droughts, global calamities, pandemics and other public health crises, or political unrest and global conflicts, have affected, and in the future could affect, our revenue and operating results.
Natural disasters and extreme weather events, including hurricanes, fires, earthquakes and droughts, global calamities, pandemics and other public health crises, or political unrest and global conflicts, have affected, and in the future could affect, our revenue and operating results.
We currently have a presence in 15 countries outside of the United States with approximately 125,250 personnel. We also provide our services on a more limited basis in several additional countries and in offshore locations.
We currently have a presence in 15 countries outside of the United States with approximately 133,690 personnel. We also provide our services on a more limited basis in several additional countries and in offshore locations.
A variety of laws and regulations at various governmental levels relate to the handling, preparation, transportation and serving of food. In addition, the cleanliness of food production facilities and the hygiene of food-handling personnel are enforced primarily at the local public health department level.
The laws and regulations relating to our business are numerous and complex. A variety of laws and regulations at various governmental levels relate to the handling, preparation, transportation and serving of food. In addition, the cleanliness of food production facilities and the hygiene of food-handling personnel are enforced primarily at the local public health department level.
For example, global supply chain disruptions caused by global events, such as the Russian/Ukraine conflict have resulted, and may continue to result, in delivery delays as well as lower fill rates and higher substitution rates for a wide-range of products.
For example, global supply chain disruptions caused by global events, such as conflicts, have resulted, and may continue to result, in delivery delays as well as lower fill rates and higher substitution rates for a wide-range of products.
Political and economic stability in the countries in which foreign suppliers are located, the financial stability of suppliers, suppliers' failure to meet our standards, labor problems experienced by our suppliers, the availability of raw materials and labor to suppliers, cybersecurity issues, currency exchange rates, transport availability and cost, tariffs, inflation and other factors relating to the suppliers and the countries in which they are located are beyond our control.
Political and economic stability in the countries in which foreign suppliers are located, tariffs and other measures that restrict global trade, the financial stability of suppliers, suppliers' failures to meet our standards, labor problems experienced by our suppliers, the availability of raw materials and labor to suppliers, cybersecurity issues, currency exchange rates, transport availability and cost, inflation and other factors relating to the suppliers and the countries in which they are located are beyond our control.
Therefore, we may be placed at a competitive disadvantage for clients who require multiservice or multinational bids. 10 Table of Contents Increased operating costs and obstacles to cost recovery due to the pricing and cancellation terms of our contracts may constrain our ability to make a profit.
Therefore, we may be placed at a competitive disadvantage for clients who require multiservice or multinational bids in geographies where we do not currently operate. 10 Table of Contents Increased operating costs and obstacles to cost recovery due to the pricing and cancellation terms of our contracts may constrain our ability to make a profit.
In addition, domestic foreign trade policies, tariffs and other impositions on imported goods, trade sanctions imposed on certain countries, the limitation on the importation of certain types of goods or of goods containing certain materials from other countries and other factors relating to foreign trade are beyond our control.
In addition, domestic foreign trade policies, tariffs and other impositions on imported goods, trade sanctions imposed on certain countries, the limitation on the importation of certain types of goods or of goods containing certain materials from other countries and other factors relating to foreign trade have in the past and may in the future negatively affect our business and are beyond our control.
Drought, flood, natural disasters and other extreme weather events associated with climate change as well as chronic climate impacts such as rising mean temperatures and changes in precipitation patterns could also result in supply chain disruptions or higher material costs.
Drought, flood, fires, hurricanes, earthquakes, blizzards, tornadoes, extreme temperatures , natural disasters and other extreme weather events, as well as chronic climate impacts such as rising mean temperatures and changes in precipitation patterns could also result in supply chain disruptions or higher material costs.
In addition, goodwill and other intangible assets resulting from business combinations represent a significant portion of our assets. If goodwill or other intangible assets were deemed to be impaired, we would need to take a charge to earnings to write down these assets to their fair value. We face risks associated with the recently completed spin-off of our Uniform segment.
In addition, goodwill and other intangible assets resulting from business combinations represent a significant portion of our assets. If goodwill or other intangible assets were deemed to be impaired, we would need to take a charge to earnings to write down these assets to their fair value.
There can be no assurance that additional laws or regulations in this area would not limit our activities in the future or significantly increase the cost of regulatory compliance. We must also obtain and comply with the terms of licenses in order to sell alcoholic beverages in the states in which we serve alcoholic beverages.
Additional laws or regulations in this area may limit our activities in the future or significantly increase the cost of regulatory compliance. We must also obtain and comply with the terms of licenses in order to sell alcoholic beverages in the jurisdictions in which we serve alcoholic beverages.
If our relationship with, or the business of, Sysco or another primary distributor were to be disrupted, we would have to arrange alternative distributors and our operations and cost structure could be adversely affected in the short term. For example, past labor shortages and other labor disputes at our primary distributors have exacerbated supply chain issues impacting our business.
If our relationship with, or the business of, Sysco or another primary distributor were to be disrupted, we would have to arrange alternative distributors and our operations and cost structure could be adversely affected in the short term.
Economic downturns that impact our financial condition may be caused by inflation, supply chain disruptions, geopolitics, global energy shortages, major central bank policy actions including interest rate increases, public health crises, or other factors. Economic hardship in our client base has also impacted and may continue to impact our business.
Economic downturns that impact our financial condition may be caused by inflation, supply chain disruptions, geopolitics, trade disputes, tariff increases, global energy shortages, major central bank policy actions including interest rate increases, public health crises, or other factors.
We are also at risk for challenge or criticism associated with stakeholders who reject or challenge our ESG programs and commitments. We cannot guarantee that we will achieve our announced ESG targets and commitments, satisfy all stakeholder expectations or that the benefits of implementing or achieving these goals and initiatives will not surpass their projected costs.
We cannot guarantee that we will achieve our announced ESG targets and commitments, satisfy all stakeholder expectations or that the benefits of implementing or achieving these goals and initiatives will not surpass their projected costs.
In addition, clients are increasingly focused on and requiring us to make commitments, set targets and meet standards related to environmental sustainability matters, such as waste management, greenhouse gas emissions, including lower-carbon food offerings, animal health and welfare, deforestation and land use. Our ability to retain clients may depend in part on the effectiveness of our response to these expectations.
In addition, a number of our clients remain focused on, and continue to require us to make commitments, set targets and meet standards related to, environmental sustainability matters, such as waste management, greenhouse gas emissions, including lower-carbon food offerings, animal health and welfare, deforestation and land use.
Our success depends on our ability to retain our current clients, renew our existing client contracts and obtain new business on commercially-favorable terms. Our ability to do so generally depends on a variety of factors, including the quality, price and responsiveness of our services, as well as our ability to market these services effectively and differentiate ourselves from our competitors.
Our ability to do so generally depends on a variety of factors, including the quality, price and responsiveness of our services, as well as our ability to market these services effectively and differentiate ourselves from our competitors.
A cyber, weather or other incident could also disrupt our distributors' operations and, therefore, impact our business in the short term. Similarly, a sudden termination of the relationship with a significant provider in other geographic areas could in the short term adversely affect our ability to provide services and disrupt our client relationships in such areas.
Similarly, a sudden termination of the relationship with a significant provider in other geographic areas could in the short term adversely affect our ability to provide services and disrupt our client relationships in such areas. Our business is contract intensive and may lead to client disputes.
As of September 27, 2024, our outstanding indebtedness was $5,271.5 million. We had additional availability of $1,341.6 million under our revolving credit facilities and availability of $600.0 million under the Receivables Facility as of that date.
As of October 3, 2025, our outstanding indebtedness was $5,405.9 million. We had additional availability of $1,161.7 million under our revolving credit facilities and availability of $625.0 million under the Receivables Facility as of that date.
In addition, political unrest and global conflicts have disrupted, and in the future may continue to disrupt, global supply chains and heighten volatility and disruption of global financial markets. For example, while we do not have direct operations within Russia or Ukraine, the conflict involving these nations has triggered inflation in our costs and may increase our risk of cyberattacks.
In addition, political unrest and global conflicts have disrupted, and in the future may continue to disrupt, global supply chains and heighten volatility and disruption of global financial markets. For example, while we do not currently have direct operations in the Middle East, the ongoing tensions in the region may disrupt global markets and impact our supply chain.
Some of our contracts require us to pay liquidated damages during any period in which the liquor license for the facility is suspended as a result of our actions and most contracts are subject to termination if the liquor license for the facility is lost as a result of our actions. 14 Table of Contents If we fail to comply with requirements imposed by applicable law or other governmental regulations, we could become subject to lawsuits, investigations and other liabilities and restrictions on our operations that could significantly and adversely affect our business.
Some of our contracts require us to pay 14 Table of Contents liquidated damages during any period in which the liquor license for the facility is suspended as a result of our actions and most contracts are subject to termination if the liquor license for the facility is lost as a result of our actions.
Delays in or poor execution of the integration of these systems could disrupt our operations and increase costs and could also potentially adversely impact the effectiveness of our disclosure controls and internal controls over financial reporting. 13 Table of Contents Possible future acquisitions could also result in additional contingent liabilities and amortization expenses related to intangible assets being incurred, which could have a material adverse effect on our business, financial condition or results of operations.
Delays in or poor execution of the integration of these systems could disrupt our operations and 13 Table of Contents increase costs and could also potentially adversely impact the effectiveness of our disclosure controls and internal controls over financial reporting.
Any decrease in the number of games played, or the occurrence of games with limited or no fans attending, has resulted in, and would in the future result in a loss of revenue and reduced profits at the venues we service. 9 Table of Contents Operational Risks Our failure to retain our current clients, renew our existing client contracts on comparable terms and obtain new client contracts on expected terms could adversely affect our business.
Any decrease in the number of games played, or the occurrence of games with limited or no fans attending, has resulted in, and would in the future result in a loss of revenue and reduced profits at the venues we service.
Item 1A. Risk Factors Risks Related to Our Business Economic and External Risks Unfavorable economic conditions have, and in the future could, adversely affect our results of operations and financial condition.
Some statements in this Annual Report on Form 10-K, including statements in the following risk factors, constitute forward-looking statements. See “Special Note About Forward-Looking Statements." Risks Related to Our Business Economic and External Risks Unfavorable economic conditions have affected, and in the future could adversely affect our results of operations and financial condition.
We may be subject to significant liabilities to the extent that human health is adversely affected or the value of such properties is diminished by such migration.
We may be subject to significant liabilities to the extent that human health is adversely affected or the value of such properties is diminished by such migration. 17 Table of Contents Our commitments and stakeholder expectations relating to ESG considerations may expose us to liabilities, increased costs, reputational harm and other adverse effects on our business.
On September 30, 2023, we completed the separation and distribution of the Uniform segment. While the spin-off has been completed, we are still subject to potentially continued unforeseen expenses, including additional general and administrative costs, costs from lost synergies, restructuring costs or other costs and expenses.
While the spin-off has been completed, we are still subject to potentially continued unforeseen expenses, including additional general and administrative costs, costs from lost synergies, restructuring costs or other costs and expenses. The spin-off may hinder our ability to retain existing business and operational relationships, including with clients, customers, suppliers and employees, as well as to cultivate new business relationships.
The amount of risk that we bear and our profit potential vary depending on the type of contract under which we provide food and support services. We may be unable to fully recover costs on contracts that limit our ability to increase prices.
The amount of risk that we bear and our profit potential vary depending on the type of contract under which we provide food and support services. Approximately two-thirds of our revenue in fiscal 2025 is from profit and loss contracts under which we have limited ability to pass on cost increases to our clients.
Failure to properly manage, could also lead to unauthorized access to sensitive information and could harm our reputation and competitive position. At the same time, if we fail to keep pace with the rapid evolution of AI technologies, our competitive position and business results could suffer.
At the same time, if we fail to keep pace with the rapid evolution of AI technologies in our industry and the segments we serve, our competitive position and business results could suffer. Environmental requirements may subject us to significant liability and limit our ability to grow.
Similarly, financial distress or insolvency, if experienced by our key vendors and service providers such as insurance carriers, could significantly increase our costs.
Similarly, financial distress or insolvency, if experienced by our key vendors and service providers such as insurance carriers, could significantly increase our costs. Some of our services are particularly sensitive to an economic downturn, as expenditures to take vacations or hold or attend conventions are funded to a partial or total extent by discretionary income.
The spin-off may hinder our ability to retain existing business and operational relationships, including with clients, customers, suppliers and employees, as well as to cultivate new business relationships. Based on these and other factors we may not be able to achieve the full strategic and financial benefits that are expected as a result of the spin-off.
Based on these and other factors we may not be able to achieve the full strategic and financial benefits that are expected as a result of the spin-off. Legal, Regulatory, Safety and Security Risks Laws and governmental regulations relating to food and beverages may subject us to significant liability and reputational harm.
In addition, we provide many of our services under contracts of indefinite term, which are subject to termination on short notice by either party without cause. Some of our contracts contain minimum guaranteed remittances to our client regardless of our revenue or profit at the facility, typically contingent on certain future events.
Therefore, absent our ability to negotiate contractual changes, or to implement price increases, we may have to absorb cost increases, which may adversely impact our operating results. In addition, we provide many of our services under contracts of indefinite term, which are subject to termination on short notice by either party without cause.
In addition, any increased funding obligations for underfunded multiemployer defined benefit pension plans could have an adverse financial impact on us. Legal, Regulatory, Safety and Security Risks Laws and governmental regulations relating to food and beverages may subject us to significant liability and reputational harm. The laws and regulations relating to our business are numerous and complex.
In addition, any increased funding obligations for underfunded multiemployer defined benefit pension plans could have an adverse financial impact on us. We face risks associated with the recently completed spin-off of our Uniform segment. On September 30, 2023, we completed the separation and distribution of the Uniform segment.
Removed
For example, in early stages of the COVID-19 pandemic, or in the period of economic distress following the financial crisis of 2008, certain of our businesses were negatively affected by reduced employment levels at our clients’ locations and declining levels of business and customer spending.
Added
Item 1A. Risk Factors You should carefully consider the following risk factors as well as the other information set forth in this Annual Report on Form 10-K, including “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes thereto.
Removed
For example, in response to the changed circumstances caused by shutdowns at the beginning of the COVID-19 pandemic, we worked with clients to renegotiate contracts and financial structures in order to mitigate lost revenues caused by partial or full closure of client premises.
Added
If any of the following risks actually occur, our business, results of operations, prospects, and financial condition may be materially adversely affected. In such case, the trading price of our common stock could decline, and you may lose all or part of your investment.
Removed
The portion of our business that provides services in facilities such as convention centers and tourist and recreational attractions is particularly sensitive to an economic downturn, as expenditures to take vacations or hold or attend conventions are funded to a partial or total extent by discretionary income.
Added
The risks and uncertainties described below are those that we have identified as material but are not the only risks and uncertainties we face.
Removed
We also do not have direct operations in the Middle East, but the ongoing Israel-Hamas War and escalating tensions in the region may disrupt global markets and impact our supply chain.
Added
Our business is also subject to general risks and uncertainties that affect many other companies, including but not limited to overall economic and industry conditions, and additional risks not currently known to us or that we presently deem immaterial may arise or become material and may negatively impact our business, reputation, financial condition, results of operations, or the trading price of our common stock.
Removed
Approximately two-thirds of our revenue in fiscal 2024 is from profit and loss contracts under which we have limited ability to pass on cost increases to our clients. Therefore, absent our ability to negotiate contractual changes, including pricing, we may have to absorb cost increases, which may adversely impact our operating results.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur CISO holds the following certifications: Certified Information Systems Auditor (CISA), Certified Information Security Manager (CISM), and Certified in Risk and Information Systems Control (CRISC) from the Information Systems Audit and Control Association, and is a Certified Cybersecurity Information Security Officer (C-CISO) by the International Council of E-Commerce Consultants. 22 Table of Contents
Biggest changeWith a career spanning global organizations across different industries, such as retail, food service, defense and financial software, our CISO holds the following certifications: Certified Information Security Manager (CISM) by the Information Systems Audit and Control Association, Certified Information Systems Security Professional (CISSP) and Certified Cloud Security Professional (CCSP), both by the International Information System Security Certification Consortium. 22 Table of Contents
Our CISO is responsible for oversight of the cybersecurity program, supervision of 21 Table of Contents the members of the team, and implementation of our layered cybersecurity measures, which include a documented security architecture program, endpoint detection, security incident response and event management and recovery, and privileged access management, among others.
Our CISO is responsible for oversight of the cybersecurity program, 21 Table of Contents supervision of the members of the team, and implementation of our layered cybersecurity measures, which include a documented security architecture program, endpoint detection, security incident response and event management and recovery, and privileged access management, among others.
During fiscal 2024, substantially all of our directors attended the Audit Committee meetings in which the Committee received updates relating to cybersecurity. Role of Management Our CISO, who reports directly to our CIO, is responsible for the day-to-day management of the Cybersecurity program and mitigation of cybersecurity risks, and supervises our SOC.
During fiscal 2025, substantially all of our directors attended the Audit Committee meetings in which the Committee received updates relating to cybersecurity. Role of Management Our CISO, who reports directly to our CIO, is responsible for the day-to-day management of the Cybersecurity program and mitigation of cybersecurity risks, and supervises our SOC.
Risk Management We have a global information security program responsible for creating cybersecurity policies, including an overarching Global Information Security Policy, that takes in account the National Institute of Standards & Technology Cybersecurity Framework (“NIST CSF”) and regulatory requirements.
Risk Management We have a global information security program responsible for creating cybersecurity policies, including an overarching Global Information Security Policy, that takes into account the National Institute of Standards & Technology Cybersecurity Framework (“NIST CSF”) and regulatory requirements.
In fiscal 2024, we engaged an independent cybersecurity advisory firm to lead a cybersecurity crisis simulation exercise that has been used by our senior leaders to prepare for a possible cyber crisis.
In fiscal 2025, we engaged an independent cybersecurity advisory firm to lead a cybersecurity crisis simulation exercise that has been used by our senior leaders to prepare for a possible cyber crisis.
Removed
Our CISO brings over twenty years of extensive cybersecurity expertise, encompassing pivotal roles from hands-on technical positions to leadership responsibilities in designing, building and executing multiple cybersecurity teams and programs. Our CISO’s career spans global organizations across different industries as retail, software and technology, medical device manufacturing and cyber advisory and audit services.
Added
Our CISO brings over twenty years of broad technology leadership experience focused in the domains of cybersecurity, software engineering, and enterprise architecture.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties Our principal executive offices are currently leased at 2400 Market Street, Philadelphia, Pennsylvania 19103. We own 15 buildings that we use in our FSS United States segment, including several office/warehouse spaces, and we lease 119 premises, consisting of offices, warehouses and distribution centers.
Biggest changeItem 2. Properties Our principal executive offices are currently leased at 2400 Market Street, Philadelphia, Pennsylvania 19103. We own 13 buildings that we use in our FSS United States segment, including several office/warehouse spaces, and we lease 125 premises, consisting of offices, warehouses and distribution centers.
In addition, we own 6 properties consisting of offices, land and warehouses and lease 56 facilities throughout the world that we use in our FSS International segment. We also maintain other real estate and leasehold improvements. No individual parcel of real estate owned or leased is of material significance to our total assets.
In addition, we own 6 properties consisting of offices, land and warehouses and lease 58 facilities throughout the world that we use in our FSS International segment. We also maintain other real estate and leasehold improvements. No individual parcel of real estate owned or leased is of material significance to our total assets.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeLegal Proceedings From time to time, we and our subsidiaries are party to various legal actions, proceedings and investigations involving claims incidental to the conduct of our business, including actions by clients, customers, employees, government entities and third parties, including under federal, state, international, national, provincial and local employment laws, wage and hour laws, discrimination laws, immigration laws, human health and safety laws, import and export controls and customs laws, environmental laws, ESG-related non-financial disclosure laws, false claims or whistleblower statutes, minority, women and disadvantaged business enterprise statutes, tax codes, antitrust and competition laws, consumer protection statutes, procurement regulations, intellectual property laws, food safety and sanitation laws, cost and accounting principles, the Foreign Corrupt Practices Act, the U.K.
Biggest changeLegal Proceedings From time to time, we and our subsidiaries are party to various legal actions, proceedings and investigations involving claims incidental to the conduct of our business, including those brought by clients, customers, employees, government entities and third parties under, among others, federal, state, international, national, provincial and local employment laws, wage and hour laws, discrimination laws, immigration laws, human health and safety laws, import and export controls and customs laws, environmental laws, environmental, social and governance related non-financial disclosure laws, false claims or whistleblower statutes, minority, women and disadvantaged business enterprise statutes, tax codes, antitrust and competition laws, consumer protection statutes, procurement regulations, intellectual property laws, food safety and sanitation laws, cost and accounting principles, the Foreign Corrupt Practices Act, the U.K.
We engage in informal settlement discussions with federal, state, local and foreign authorities regarding allegations of violations of environmental laws in connection with our operations or businesses conducted by our predecessors or companies that we have acquired, the aggregate amount of which and related remediation costs we do not believe should have a material adverse effect on our financial condition or results of operations as of September 27, 2024.
We engage in informal settlement discussions with federal, state, local and foreign authorities regarding allegations of violations of environmental laws in connection with our operations or businesses conducted by our predecessors or companies that we have acquired, the aggregate amount of which and related remediation costs we do not believe should have a material adverse effect on our financial condition or results of operations as of October 3, 2025.
Added
See Note 14 to the audited consolidated financial statements.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeFrom August 2009 to March 2019, Ms. Harrington served as Vice President and Associate General Counsel and from May 2006 to August 2009, she served as Assistant General Counsel. Before joining us, Ms. Harrington was an Associate at WilmerHale LLP. Marc A. Bruno was appointed Chief Operating Officer, United States Food and Facilities in November 2019.
Biggest changeHarrington was appointed Senior Vice President and General Counsel in March 2019 and named Executive Vice President and General Counsel in November 2025. From August 2009 to March 2019, Ms. Harrington served as Vice President and Associate General Counsel and from May 2006 to August 2009, she served as Assistant General Counsel. Before joining us, Ms.
Charpentier 51 Senior Vice President and Chief Human Resources Officer 2021 Lauren A. Harrington 49 Senior Vice President and General Counsel 2006 Marc A. Bruno 53 Chief Operating Officer, United States Food and Facilities 1993 John J. Zillmer was appointed Chief Executive Officer and a member of the Board of Directors in October 2019. Prior to joining us, Mr.
Charpentier 52 Executive Vice President and Chief Human Resources Officer 2021 Lauren A. Harrington 50 Executive Vice President and General Counsel 2006 Marc A. Bruno 54 Chief Operating Officer, United States Food and Facilities 1993 John J. Zillmer was appointed Chief Executive Officer and a member of the Board of Directors in October 2019. Prior to joining us, Mr.
Tarangelo was appointed Senior Vice President and Chief Financial Officer in January 2024. From June 2020 to January 2024, Mr. Tarangelo served as Senior Vice President and Treasurer and from December 2016 to June 2020 as Vice President and Treasurer. Previously Mr.
Tarangelo was appointed Senior Vice President and Chief Financial Officer in January 2024 and named Executive Vice President and Chief Financial Officer in November 2025. From June 2020 to January 2024, Mr. Tarangelo served as Senior Vice President and Treasurer and from December 2016 to June 2020 as Vice President and Treasurer. Previously Mr.
Item 4. Mine Safety Disclosures Not Applicable. ______________________________________ 23 Table of Contents Information About Our Executive Officers Our executive officers as of November 19, 2024 are as follows: Name Age Position With Aramark Since John J. Zillmer 69 Chief Executive Officer 2019 James J. Tarangelo 51 Senior Vice President and Chief Financial Officer 2003 Abigail A.
Item 4. Mine Safety Disclosures Not Applicable. ______________________________________ 23 Table of Contents Information About Our Executive Officers Our executive officers as of November 25, 2025 are as follows: Name Age Position With Aramark Since John J. Zillmer 70 Chief Executive Officer 2019 James J. Tarangelo 52 Executive Vice President and Chief Financial Officer 2003 Abigail A.
Prior to that, Ms. Charpentier also served in various Human Resources and operational positions at Aramark from 1995 until 2018, including as Vice President, Human Resources at Aramark Headquarters from 2017 to 2018 and Vice President, Human Resources, Aramark Education from 2014 to 2017. Lauren A. Harrington was appointed Senior Vice President and General Counsel in March 2019.
Charpentier also served in various Human Resources and operational positions at Aramark from 1995 until 2018, including as Vice President, Human Resources at Aramark Headquarters from 2017 to 2018 and Vice President, Human Resources, Aramark Education from 2014 to 2017. Lauren A.
Charpentier was appointed Senior Vice President and Chief Human Resources Officer in January 2023. From August 2021 to January 2023, Ms. Charpentier served as Senior Vice President, Human Resources and Diversity, Aramark United States Food & Facilities. Previously Ms. Charpentier was Vice President, People & Culture, the Americas of Four Seasons Hotels & Resorts from 2018 to 2021.
Charpentier was appointed Senior Vice President and Chief Human Resources Officer in January 2023 and named Executive Vice President and Chief Human Resources Officer in November 2025. From August 2021 to January 2023, Ms. Charpentier served as Senior Vice President, Human Resources and Diversity, Aramark United States Food & Facilities. Previously Ms.
From 2018 to November 2019, Mr. Bruno served as Chief Operating Officer, Sports, Leisure, Corrections, Facilities and K-12. From 2014 to 2018, Mr. Bruno served as Chief Operating Officer, Sports, Leisure and Corrections.
Harrington was an Associate at WilmerHale LLP. Marc A. Bruno was appointed Chief Operating Officer, United States Food and Facilities in November 2019. From 2018 to November 2019, Mr. Bruno served as Chief Operating Officer, Sports, Leisure, Corrections, Facilities and K-12. From 2014 to 2018, Mr. Bruno served as Chief Operating Officer, Sports, Leisure and Corrections.
Added
Charpentier was Vice President, People & Culture, the Americas of Four Seasons Hotels & Resorts from 2018 to 2021. Prior to that, Ms.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeSeptember 27, 2019 October 2, 2020 October 1, 2021 September 30, 2022 September 29, 2023 September 27, 2024 Aramark $ 100.0 $ 64.0 $ 83.2 $ 72.5 $ 80.7 $ 123.8 S&P 500 $ 100.0 $ 113.5 $ 147.1 $ 121.1 $ 144.8 $ 193.7 Dow Jones Consumer Non-Cyclical Index $ 100.0 $ 122.4 $ 148.2 $ 104.2 $ 121.4 $ 163.9 Unregistered Sales of Equity Securities There were no unregistered sales of equity securities during the fiscal year ended September 27, 2024 which have not been previously disclosed in a quarterly report on Form 10-Q or a current report on Form 8-K.
Biggest changeOctober 2, 2020 October 1, 2021 September 30, 2022 September 29, 2023 September 27, 2024 October 3, 2025 Aramark $ 100.0 $ 129.9 $ 113.2 $ 126.0 $ 193.3 $ 196.1 S&P 500 $ 100.0 $ 129.6 $ 106.6 $ 127.5 $ 170.6 $ 199.7 Dow Jones Consumer Non-Cyclical Index $ 100.0 $ 121.1 $ 85.1 $ 99.2 $ 133.9 $ 152.8 Unregistered Sales of Equity Securities There were no unregistered sales of equity securities during the fiscal year ended October 3, 2025 which have not been previously disclosed in a quarterly report on Form 10-Q or a current report on Form 8-K.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Shares of our common stock began trading on December 12, 2013 and are quoted on the NYSE under the ticker symbol “ARMK.” As of October 25, 2024, there were approximately 912 holders of record of our outstanding common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Shares of our common stock began trading on December 12, 2013 and are quoted on the NYSE under the ticker symbol “ARMK.” As of October 31, 2025, there were approximately 898 holders of record of our outstanding common stock.
The graph assumes that $100 was invested in our common stock and in each index at the market close on September 27, 2019 and assumes that all dividends were reinvested. The stock price performance of the following graph is not necessarily indicative of future stock price performance.
The graph assumes that $100 was invested in our common stock and in each index at the market close on October 2, 2020 and assumes that all dividends were reinvested. The stock price performance of the following graph is not necessarily indicative of future stock price performance.
Purchases of Equity Securities by the Issuer There were no repurchases of equity securities by us in the fourth fiscal quarter ended September 27, 2024. Item 6. [Reserved] 25 Table of Contents
Purchases of Equity Securities by the Issuer There were no repurchases of equity securities by us in the fourth fiscal quarter ended October 3, 2025. Item 6. [Reserved] 25 Table of Contents
The following graph shows a comparison from September 27, 2019, the last trading day of fiscal 2019, through September 27, 2024 of the cumulative total return for our common stock, The Standard & Poor’s (“S&P”) 500 Stock Index and The Dow Jones Consumer Non-Cyclical Index ("DJUSCY").
The following graph shows a comparison from October 2, 2020, the last trading day of fiscal 2020, through October 3, 2025 of the cumulative total return for our common stock, The Standard & Poor’s (“S&P”) 500 Stock Index and The Dow Jones Consumer Non-Cyclical Index ("DJUSCY").

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

89 edited+38 added−58 removed61 unchanged
Biggest changeFiscal Year Ended Change Change September 27, 2024 September 29, 2023 $ % Revenue $ 17,400.7 $ 16,083.2 $ 1,317.5 8.2 % Costs and Expenses: Cost of services provided (exclusive of depreciation and amortization) 15,975.0 14,774.7 1,200.3 8.1 % Other operating expenses 719.2 683.5 35.7 5.2 % 16,694.2 15,458.2 1,236.0 8.0 % Operating income 706.5 625.0 81.5 13.0 % Gain on Sale of Equity Investments, net (25.1) (376.0) 350.9 93.3 % Interest Expense, net 366.7 437.5 (70.8) (16.2) % Income from Continuing Operations Before Income Taxes 364.9 563.5 (198.6) (35.3) % Provision for Income Taxes from Continuing Operations 103.0 116.4 (13.4) (11.6) % Net income from Continuing Operations $ 261.9 $ 447.1 $ (185.2) (41.4) % Fiscal Year Ended Change Change Revenue by Segment (1) September 27, 2024 September 29, 2023 $ % FSS United States $ 12,576.7 $ 11,721.4 $ 855.3 7.3 % FSS International 4,824.0 4,361.8 462.2 10.6 % $ 17,400.7 $ 16,083.2 $ 1,317.5 8.2 % Fiscal Year Ended Change Change Operating Income by Segment September 27, 2024 September 29, 2023 $ % FSS United States $ 659.9 $ 650.0 $ 9.9 1.5 % FSS International 187.3 114.5 72.8 63.6 % Corporate (140.7) (139.5) (1.2) (0.9 %) $ 706.5 $ 625.0 $ 81.5 13.0 % (1) As a percentage of total revenue, FSS United States represented 72.3% and 72.9% and FSS International represented 27.7% and 27.1% for fiscal 2024 and fiscal 2023, respectively.
Biggest changeFiscal 2024 Compared to Fiscal 2023 The following table presents an overview of our results on a consolidated basis with the amount of and percentage change between periods for the fiscal years 2024 and 2023 (in millions): Fiscal Year Ended Change Change September 27, 2024 September 29, 2023 $ % Revenue $ 17,400.7 $ 16,083.2 $ 1,317.5 8.2 % Costs and Expenses: Cost of services provided (exclusive of depreciation and amortization) 15,975.0 14,774.7 1,200.3 8.1 % Depreciation and amortization 435.6 409.8 25.8 6.3 % Selling and general corporate expenses 283.6 273.7 9.9 3.6 % Total costs and expenses 16,694.2 15,458.2 1,236.0 8.0 % Operating income 706.5 625.0 81.5 13.0 % Gain on Equity Investments, net (25.1) (376.0) 350.9 93.3 % Interest Expense, net 366.7 437.5 (70.8) (16.2) % Income from Continuing Operations Before Income Taxes 364.9 563.5 (198.6) (35.2) % Provision for Income Taxes from Continuing Operations 103.0 116.4 (13.4) (11.5) % Net income from Continuing Operations $ 261.9 $ 447.1 $ (185.2) (41.4) % 31 Table of Contents Consolidated Overview Revenue Revenue increased by 8.2% during fiscal 2024 compared to fiscal 2023, which was primarily attributable to base business growth, including volume growth and contract price increases, and net new business.
Supplemental Consolidating Information Pursuant to Regulation S-X Rule 13-01, which simplified certain disclosure requirements for guarantors and issuers of guaranteed securities, we are no longer required to provide condensed consolidating financial statements for Aramark and its subsidiaries, including the guarantors and non-guarantors under our Credit Agreement and the indentures governing our senior notes.
Supplemental Consolidating Information Pursuant to Regulation S-X Rule 13-01, which simplified certain disclosure requirements for guarantors and issuers of guaranteed securities, we are no longer required to provide consolidating financial statements for Aramark and its subsidiaries, including the guarantors and non-guarantors under our Credit Agreement and the indentures governing our senior notes.
We also rely on our assessment of the Company’s projected future results of business operations, including uncertainty in future operating results relative to historical results, volatility in the market price of our common stock and its performance over time, variable macroeconomic conditions impacting our ability to forecast future taxable income, and changes in business that may affect the existence and magnitude of future taxable income.
We also rely on our assessment of projected future results of business operations, including uncertainty in future operating results relative to historical results, volatility in the market price of our common stock and its performance over time, variable macroeconomic conditions impacting our ability to forecast future taxable income, and changes in business that may affect the existence and magnitude of future taxable income.
(4) "Other" for the twelve months ended September 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 ($52.2 million), charges related to our spin-off of the Uniform segment ($29.0 million), non-cash adjustments to inventory based on expected usage ($21.7 million), severance charges ($13.0 million), the reversal of contingent consideration liabilities related to acquisition earn outs, net of expense ($8.1 million), charges related to a ruling on a foreign tax matter ($6.8 million), the impact of hyperinflation in Argentina ($5.4 million), non-cash charges related to the impairment of a trade name ($3.3 million), income related to non-United States governmental wage subsidies ($1.1 million) and other miscellaneous expenses.
(5) "Other" for the twelve months ended September 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 ($52.2 million), charges related to our spin-off of the Uniform segment ($29.0 million), non-cash adjustments to inventory based on expected usage ($21.7 million), severance charges ($13.0 million), the reversal of contingent consideration liabilities related to acquisition earn outs, net of expense ($8.1 million), a charge related to a ruling on a foreign payroll tax matter ($6.8 million), the impact of hyperinflation in Argentina ($5.4 million), non-cash charges related to the impairment of a trade name ($3.3 million), income related to non-United States governmental wage subsidies ($1.1 million) and other miscellaneous expenses.
On November 5, 2024, the Board of Directors approved a share repurchase program under which we are authorized to repurchase up to $500 million of Aramark's outstanding common stock. The share repurchase program does not have a fixed expiration date.
On November 5, 2024, the Board of Directors approved a share repurchase program under which we are authorized to repurchase up to $500.0 million of Aramark's outstanding common stock. The share repurchase program does not have a fixed expiration date.
Litigation and Claims From time to time, we and our subsidiaries are party to various legal actions, proceedings and investigations involving claims incidental to the conduct of our business, including actions by clients, customers, employees, government entities and third parties, including under federal, state, international, national, provincial and local employment laws, wage and hour laws, discrimination laws, immigration laws, human health and safety laws, import and export controls and customs laws, environmental laws, ESG-related non-financial disclosure laws, false claims or whistleblower statutes, minority, women and disadvantaged business enterprise statutes, tax codes, antitrust and competition laws, consumer protection statutes, procurement regulations, intellectual property laws, food safety and sanitation laws, cost and accounting principles, the Foreign Corrupt Practices Act, the U.K.
Litigation and Claims From time to time, we and our subsidiaries are party to various legal actions, proceedings and investigations involving claims incidental to the conduct of our business, including actions by clients, customers, employees, government entities and third parties, including under federal, state, international, national, provincial and local employment laws, wage and hour laws, discrimination laws, immigration laws, human health and safety laws, import and export controls and customs laws, environmental laws, environmental, social and governance related non-financial disclosure laws, false claims or whistleblower statutes, minority, women and disadvantaged business enterprise statutes, tax codes, antitrust and competition laws, consumer protection statutes, procurement regulations, intellectual property laws, food safety and sanitation laws, cost and accounting principles, the Foreign Corrupt Practices Act, the U.K.
We operate our business in two geographic reportable segments: • Food and Support Services United States ("FSS United States") - Food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping, provided to business, educational and healthcare institutions and in sports, leisure and other facilities within the United States. • Food and Support Services International ("FSS International") - Food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping, provided to business, educational and healthcare institutions and in sports, leisure and other facilities outside of the United States with the largest operations within Canada, Chile, China, Germany, Spain and the United Kingdom.
We operate our business in two reportable segments: • Food and Support Services United States ("FSS United States") - Food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping, provided to business, educational and healthcare institutions and in sports, leisure and other facilities within the United States. • Food and Support Services International ("FSS International") - Food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping, provided to business, educational and healthcare institutions and in sports, leisure and other facilities outside of the United States with the largest operations within Canada, Chile, China, Germany, Spain, Ireland and the United Kingdom.
Some management fee contracts entitle us to receive incentive fees based upon our performance under the contract, as measured by factors such as revenue, operating costs and customer satisfaction surveys. For fiscal 2024, approximately one-third of our revenue was derived from client interest contracts.
Some management fee contracts entitle us to receive incentive fees based upon our performance under the contract, as measured by factors such as revenue, operating costs and customer satisfaction surveys. For fiscal 2025, approximately one-third of our revenue was derived from client interest contracts.
For fiscal 2024, approximately two-thirds of our revenue was derived from profit and loss contracts. Client interest contracts include management fee contracts, under which our clients reimburse our operating costs and pay us a management fee, which may be calculated as a fixed dollar amount or a percentage of revenue or operating costs.
For fiscal 2025, approximately two-thirds of our revenue was derived from profit and loss contracts. Client interest contracts include management fee contracts, under which our clients reimburse our operating costs and pay us a management fee, which may be calculated as a fixed dollar amount or a percentage of revenue or operating costs.
We believe that our cash and cash equivalents, marketable securities and availability under our revolving credit facility and Receivables Facility will be adequate to meet anticipated cash requirements for the foreseeable future to fund working capital, capital spending, debt service obligations, refinancings, dividends and other cash needs.
We believe that our cash and cash equivalents and availability under our revolving credit facility and Receivables Facility will be adequate to meet anticipated cash requirements for the foreseeable future to fund working capital, capital spending, debt service obligations, refinancings, dividends and other cash needs.
Additionally, the decrease was partially offset by the payment of a $23.9 million call premium, $8.3 million of higher non-cash losses for the write-off of unamortized deferred financing costs and transaction costs related to the refinancing and repricing transactions in fiscal 2024 (see Note 6 to the audited consolidated financial statements) and higher borrowings on the Receivables Facility throughout fiscal 2024.
The decrease was partially offset by the payment of a $23.9 million call premium, $8.3 million of higher non-cash losses for the write-off of unamortized deferred financing costs and transaction costs related to the refinancing and repricing transactions in fiscal 2024 (see Note 5 to the audited consolidated financial statements) and higher borrowings on the Receivables Facility throughout fiscal 2024.
The change was driven by higher net income, inclusive of the add-back of non-cash gains and losses and adjustments to non-operating cash transactions, in fiscal 2024 compared to the prior year period, as discussed in "Results of Operations" above.
The change was driven by higher net income, inclusive of the add-back of non-cash gains and losses and adjustments to non-operating cash transactions, in fiscal 2025 compared to the prior year period, as discussed in "Results of Operations" above.
(2) Our Credit Agreement establishes an incurrence-based minimum Interest Coverage Ratio, defined as Covenant Adjusted EBITDA to consolidated interest expense, the achievement of which is a condition for us to incur additional indebtedness and to make certain restricted payments and does not result in a default under the Credit Agreement or the indentures governing the senior notes.
(2) Our Credit Agreement establishes an incurrence-based minimum Interest Coverage Ratio, defined as Covenant Adjusted EBITDA to consolidated interest expense, the achievement of which is a condition for us to incur additional 38 Table of Contents indebtedness and to make certain restricted payments and does not result in a default under the Credit Agreement or the indentures governing the senior notes.
Our reserves for retained costs associated with our casualty program are estimated through actuarial methods, with the assistance of third-party actuaries, using loss development assumptions based on 43 Table of Contents our claims history. Our casualty program reserves take into account reported claims as well as incurred-but-not-reported losses using loss development factors based upon past experience.
Our reserves for retained costs associated with our casualty program are estimated through actuarial methods, with the assistance of third-party actuaries, using loss development assumptions based on our claims history. Our casualty program reserves take into account reported claims as well as incurred-but-not-reported losses using loss development factors based upon past experience.
We believe that providing the impact of fluctuations in foreign currency rates on certain financial results can facilitate analysis of period-to-period comparisons of business performance. Fiscal Year Our fiscal year is the fifty-two or fifty-three week period which ends on the Friday nearest to September 30th.
We believe that providing the impact of fluctuations in foreign currency rates on certain financial results can facilitate analysis of period-to-period comparisons of business performance. 27 Table of Contents Fiscal Year Our fiscal year is the fifty-two or fifty-three week period which ends on the Friday nearest to September 30th.
If results of the qualitative assessment indicate a more likely than not determination or if a qualitative assessment is not performed, a quantitative test is performed by comparing the estimated fair value using a discounted cash flow method or market method for each reporting unit with its estimated net book value.
If results of the qualitative assessment indicate a more likely than not 40 Table of Contents determination or if a qualitative assessment is not performed, a quantitative test is performed by comparing the estimated fair value using a discounted cash flow method or market method for each reporting unit with its estimated net book value.
In the following discussion and analysis of financial condition and results of operations, certain financial measures may be considered “non-GAAP financial measures” under the Securities and Exchange Commission ("SEC") rules. These rules require supplemental explanation and reconciliation, which is provided elsewhere in this Annual Report.
In the following discussion and analysis of financial condition and results of operations, certain financial measures may be considered “non-GAAP financial measures” under the SEC rules. These rules require supplemental explanation and reconciliation, which is provided elsewhere in this Annual Report.
Covenant Adjusted EBITDA, as presented by us, may not be comparable to other similarly titled measures of other companies because not all companies use identical calculations. The following is a reconciliation of Net income attributable to ASI stockholder, which is a U.S. GAAP measure of ASI''s operating results, to Covenant Adjusted EBITDA as defined in our debt agreements.
Covenant Adjusted EBITDA, as presented by us, may not be comparable to other similarly titled measures of other companies because not all companies use identical calculations. The following is a reconciliation of Net income attributable to ASI stockholders, which is a U.S. GAAP measure of ASI's operating results, to Covenant Adjusted EBITDA as defined in our debt agreements.
During the fourth quarter of fiscal 2024, we performed the annual impairment test for goodwill for each of our reporting units using a quantitative testing approach. Based on the evaluation performed, we determined that the fair value of each of the reporting units significantly exceeded its respective carrying amount, and therefore, we determined that goodwill was not impaired.
During the fourth quarter of fiscal 2025, we performed the annual impairment test for goodwill for each of our reporting units using a quantitative testing approach. Based on the evaluation performed, we determined that the fair value of each of the reporting units substantially exceeded its respective carrying amount, and therefore, we determined that goodwill was not impaired.
Consolidated interest expense is defined in the Credit Agreement as consolidated interest expense excluding interest income, adjusted for acquisitions and dispositions and for certain non- 40 Table of Contents cash or nonrecurring interest expense. The indentures governing our senior notes include a similar requirement which is referred to as a Fixed Charge Coverage Ratio.
Consolidated interest expense is defined in the Credit Agreement as consolidated interest expense excluding interest income, adjusted for acquisitions and dispositions and for certain non-cash or nonrecurring interest expense. The indentures governing our senior notes include a similar requirement which is referred to as a Fixed Charge Coverage Ratio.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of Aramark's (the "Company," "we," "our" and "us") financial condition and results of operations for the fiscal years ended September 27, 2024, September 29, 2023 and September 30, 2022 should be read in conjunction with our audited consolidated financial statements and the notes to those statements.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of Aramark's (the "Company," "we," "our" and "us") financial condition and results of operations for the fiscal years ended October 3, 2025, September 27, 2024 and September 29, 2023 should be read in conjunction with our audited consolidated financial statements and the notes to those statements.
(2) The twelve months ended September 27, 2024 represents the pre-tax gain from the sale of our remaining equity investment in the San Antonio Spurs NBA franchise ($25.1 million) and the non-cash charge for the impairment of 39 Table of Contents certain assets related to a business that was sold ($2.3 million).
The twelve months ended September 27, 2024 represents the fiscal 2024 gain from the sale of our remaining equity investment in the San Antonio Spurs NBA franchise ($25.1 million) and the fiscal 2024 non-cash charge for the impairment of certain assets related to a business that was sold ($2.3 million).
During fiscal 2024, we sold our remaining equity investment ownership interest in the San Antonio Spurs NBA franchise in a taxable transaction resulting in a pre-tax gain on sale of this equity investment of $25.1 million, which is included in "Gain on Equity Investments, net" on the Consolidated Statements of Income (see Note 1 to the audited consolidated financial statements).
During fiscal 2024, we sold our remaining equity investment ownership interest in the San Antonio Spurs NBA franchise in a taxable transaction resulting in a pre-tax gain on sale of this equity investment of $25.1 million (see Note 1 to the audited consolidated financial statements.
(2) These amounts represent future interest payments related to our existing debt obligations based on fixed and variable interest rates specified in the associated debt agreements and reflect any current hedging arrangements. Payments related to variable debt are based on applicable rates at September 27, 2024 plus the specified margin in the associated debt agreements for each period presented.
(2) These amounts represent future interest payments related to our existing debt obligations based on fixed and variable interest rates specified in the associated debt agreements and reflect any current hedging arrangements. Payments related to variable debt are based on applicable rates at October 3, 2025 plus the specified margin in the associated debt agreements for each period presented.
The 42 Table of Contents market based method is dependent on several subjective factors including the determination of market multiples and future cash flows.
The market based method is dependent on several subjective factors including the determination of market multiples and future cash flows.
(see Note 1 to the audited consolidated financial statements) and the reversal of a portion of the Union Supply contingent consideration liability (see Note 17 to the audited consolidated financial statements), as the majority of the gains from these transactions were not subject to tax.
(see Note 1 to the audited consolidated financial statements) and a higher fiscal 2023 reversal of a portion of the Union Supply contingent consideration liability (see Note 16 to the audited consolidated financial statements), as the majority of the gains from these transactions were not subject to tax.
During fiscal 2023, we recognized a $377.1 million pre-tax gain on the sale of our 50% ownership interest in AIM Services Co., Ltd., which was partially offset by a $1.1 million pre-tax loss from the sale of a portion of our equity investment in the San Antonio Spurs NBA franchise.
During fiscal 2023, we recognized a $377.1 million pre-tax gain on the sale of our 50% ownership interest in AIM Services Co., Ltd., which was partially offset by a $1.1 million pre-tax loss from the sale of a portion of our equity investment in the San Antonio Spurs NBA franchise (see Note 1 to the audited consolidated financial statements).
The indentures governing our senior notes contain similar provisions. As of September 27, 2024, we were in compliance with these covenants. As stated above, the Credit Agreement and the indentures governing our senior notes contain provisions that restrict our ability to pay dividends and repurchase stock (collectively, "Restricted Payments").
The indentures governing our senior notes contain similar provisions. As of October 3, 2025, we were in compliance with these covenants. As stated above, the Credit Agreement and the indentures governing our senior notes contain provisions that restrict our ability to pay dividends and repurchase stock (collectively, "Restricted Payments").
Vestis is now an independent public company under the symbol “VSTS” on the NYSE. The historical results of the Uniform segment have been reflected as discontinued operations in our audited consolidated financial statements for all periods prior to the separation and distribution.
Vestis is now an independent public company under the symbol “VSTS” on the NYSE. The historical results of the Uniform segment have been reflected as discontinued operations in our audited consolidated financial statements for all periods prior to the separation and distribution. Additional disclosures regarding the separation and distribution are provided in Note 2 to the audited consolidated financial statements.
The Captive is subject to the regulations within its domicile of Bermuda, including regulations established by the Bermuda Monetary Authority (the "BMA") relating to levels of liquidity and solvency as such concepts are defined by the BMA. The Captive was in compliance with these regulations as of September 27, 2024.
The Captive is subject to the regulations within its domicile of Bermuda, including regulations established by the Bermuda Monetary Authority (the "BMA") relating to levels of liquidity and solvency as such concepts are defined by the BMA. The Captive was in compliance with these regulations as of October 3, 2025.
Cash Flows (Used in) Provided by Investing Activities The net cash flows used in investing activities during fiscal 2024 was primarily impacted by purchases of property and equipment and other ($427.4 million), acquisitions of certain businesses ($148.7 million) and purchases of United States Treasury securities related to our captive insurance subsidiary ($113.3 million), partially offset by proceeds from the maturity of United States Treasury securities related to our captive insurance subsidiary ($186.4 million) and proceeds from sale of equity investments ($101.2 million) (see Note 1 to the audited consolidated financial statements).
The net cash flows used in investing activities during the prior year period was primarily impacted by purchases of property and equipment and other ($427.4 million), acquisitions of certain businesses ($148.7 million), purchases of United States Treasury securities related to our captive insurance subsidiary ($113.3 million) and acquisition of certain equity investments ($34.2 million), partially offset by proceeds from the maturity of United States Treasury securities related to our captive insurance subsidiary ($186.4 million), proceeds from sale of equity investments ($101.2 million) (see Note 1 to the audited consolidated financial statements) and proceeds from disposal of property and equipment ($23.9 million).
Revenue for each of these sectors is summarized as follows (in millions): Fiscal Year Ended Change September 27, 2024 September 29, 2023 % Business & Industry $ 1,627.2 $ 1,407.2 15.6 % Education 3,650.4 3,437.0 6.2 % Healthcare (1) 1,620.3 1,667.7 (2.8) % Sports, Leisure & Corrections 3,981.2 3,537.1 12.6 % Facilities & Other (1) 1,697.6 1,672.4 1.5 % $ 12,576.7 $ 11,721.4 7.3 % (1) In fiscal 2024, management began reporting results for healthcare facility services within "Healthcare," whereas the results were previously reported within "Facilities & Other." As such, the "Healthcare" and "Facilities & Other" results for the fiscal year ended September 29, 2023 were recast to reflect this change.
The five sectors of the FSS United States reportable segment are Business & Industry, Education, Healthcare, Sports, Leisure & Corrections and Facilities & Other. 33 Table of Contents Revenue for each of these sectors is summarized as follows (in millions): Fiscal Year Ended Change Change September 27, 2024 September 29, 2023 $ % Business & Industry $ 1,627.2 $ 1,407.2 $ 220.0 15.6 % Education 3,650.4 3,437.0 213.4 6.2 % Healthcare (1) 1,620.3 1,667.7 (47.4) (2.8) % Sports, Leisure & Corrections 3,981.2 3,537.1 444.1 12.6 % Facilities & Other (1) 1,697.6 1,672.4 25.2 1.5 % $ 12,576.7 $ 11,721.4 $ 855.3 7.3 % (1) In fiscal 2024, management began reporting results for healthcare facility services within "Healthcare," whereas the results were previously reported within "Facilities & Other." As such, the "Healthcare" and "Facilities & Other" results for the fiscal year ended September 29, 2023 were recast to reflect this change.
Our covenant requirements and actual ratios for the twelve months ended September 27, 2024 are as follows: Covenant Requirements Actual Ratios Consolidated Secured Debt Ratio (1) ≤ 5.125x 1.99x Interest Coverage Ratio (Fixed Charge Coverage Ratio) (2) ≥ 2.000x 3.73x (1) The Credit Agreement requires ASI to maintain a maximum Consolidated Secured Debt Ratio, defined as consolidated total indebtedness secured by a lien to Covenant Adjusted EBITDA, not to exceed 5.125x.
Our covenant requirements and actual ratios for the twelve months ended October 3, 2025 are as follows: Covenant Requirements Actual Ratios Consolidated Secured Debt Ratio (1) ≤ 5.125x 2.26x Interest Coverage Ratio (Fixed Charge Coverage Ratio) (2) ≥ 2.000x 4.12x (1) The Credit Agreement requires ASI to maintain a maximum Consolidated Secured Debt Ratio, defined as consolidated total indebtedness secured by a lien to Covenant Adjusted EBITDA, not to exceed 5.125x.
Pursuant to the Receivables Facility, we formed ARAMARK Receivables, LLC, a wholly-owned, consolidated, bankruptcy-remote subsidiary. ARAMARK Receivables, LLC was formed for the sole purpose of buying and selling receivables generated by certain of our subsidiaries.
Pursuant to the Receivables Facility, we formed ARAMARK Receivables, LLC, a wholly-owned, consolidated, bankruptcy-remote subsidiary. ARAMARK Receivables, LLC was formed for the sole purpose of buying and selling receivables generated by certain of our subsidiaries. Under the Receivables Facility, we and certain of our subsidiaries transfer without recourse all of our accounts receivable to ARAMARK Receivables, LLC.
The maximum amount available under the Receivables Facility as of September 27, 2024 is $600.0 million. As of September 27, 2024, there are no outstanding borrowings under the Receivables Facility. Amounts borrowed under the Receivables Facility may fluctuate monthly based on our funding requirements and the level of qualified receivables available to collateralize the Receivables Facility.
The maximum amount available under the Receivables Facility as of October 3, 2025 is $625.0 million. As of October 3, 2025, there are no outstanding borrowings under the Receivables Facility. Amounts borrowed under the Receivables Facility may fluctuate monthly based on our funding requirements and the level of qualified receivables available to collateralize the Receivables Facility.
Fiscal 2023 also includes debt issuance costs of $8.2 million related to United States Term B-6 Loans due 2030. 38 Table of Contents Covenant Compliance The Credit Agreement contains a number of covenants that, among other things, restrict, subject to certain exceptions, our ability and the ability of our subsidiaries to: incur additional indebtedness; issue preferred stock or provide guarantees; create liens on assets; engage in mergers or consolidations; sell assets; pay dividends, make distributions or repurchase our capital stock; make investments, loans or advances; repay or repurchase any subordinated debt, except as scheduled or at maturity; create restrictions on the payment of dividends or other amounts to us from our restricted subsidiaries; make certain acquisitions; engage in certain transactions with affiliates; amend material agreements governing our subordinated debt (or any indebtedness that refinances our subordinated debt); and fundamentally change our business.
Covenant Compliance The Credit Agreement contains a number of covenants that, among other things, restrict, subject to certain exceptions, our ability and the ability of our subsidiaries to: incur additional indebtedness; issue preferred stock or provide guarantees; create liens on assets; engage in mergers or consolidations; sell assets; pay dividends, make distributions or repurchase our capital stock; make investments, loans or advances; repay or repurchase any subordinated debt, except as scheduled or at maturity; create restrictions on the payment of dividends or other amounts to us from our restricted subsidiaries; make certain acquisitions; engage in certain transactions with affiliates; amend material agreements governing our subordinated debt (or any indebtedness that refinances our subordinated debt); and fundamentally change our business.
These increases in operating income more than offset the following: • prior year labor related tax credits provided from governmental assistance programs ($12.5 million); • unfavorable impact of foreign currency translation ($11.6 million); • decline in profit related to the sale of our 50% ownership interest in AIM Services Co., Ltd.; • charges related to a ruling on a foreign tax matter ($6.8 million); and • higher personnel costs from incentive expenses related to the annual bonus.
The increase in adjusted operating income more than offset the prior year labor related tax credits provided from governmental assistance programs ($12.5 million), an unfavorable impact of foreign currency translation ($11.6 million), a decline in profit related to the sale of our 50% ownership interest in AIM Services Co., Ltd. and higher incentive expenses related to the annual bonus.
As of September 27, 2024 and September 29, 2023, our valuation allowance reserves recorded against deferred tax assets were $80.6 million and $78.2 million, respectively (see Note 11 to the audited consolidated financial statements). 44 Table of Contents New Accounting Standards Updates See Note 1 to the audited consolidated financial statements for a full description of recent accounting standards updates, including the expected dates of adoption.
As of October 3, 2025 and September 27, 2024, our valuation allowance reserves recorded against deferred tax assets were $62.3 million and $80.6 million, respectively (see Note 10 to the audited consolidated financial statements). 42 Table of Contents New Accounting Standards Updates See Note 1 to the audited consolidated financial statements for a full description of recent accounting standards updates, including the expected dates of adoption.
For additional information regarding the risks associated with our liquidity and capital resources, see Part I, Item 1A, "Risk Factors." 35 Table of Contents The table below summarizes our cash activity (in millions): Fiscal Year Ended September 27, 2024 September 29, 2023 September 30, 2022 Net cash provided by operating activities of Continuing Operations $ 726.5 $ 511.6 $ 463.9 Net cash (used in) provided by investing activities of Continuing Operations (415.9) 223.7 (745.2) Net cash (used in) provided by financing activities of Continuing Operations (1,561.2) 659.6 (34.6) Reference to the audited Consolidated Statements of Cash Flows will facilitate understanding of the discussion that follows.
For additional information regarding the risks associated with our liquidity and capital resources, see Part I, Item 1A, "Risk Factors." 35 Table of Contents The table below summarizes our cash activity (in millions): Fiscal Year Ended October 3, 2025 September 27, 2024 Net cash provided by operating activities of Continuing Operations $ 921.0 $ 726.5 Net cash used in investing activities of Continuing Operations (722.4) (415.9) Net cash used in financing activities of Continuing Operations (234.6) (1,561.2) Reference to the audited Consolidated Statements of Cash Flows will facilitate understanding of the discussion that follows.
The increase was primarily attributable to base business growth, including contract price increases, and net new business growth. The growth in revenue was offset by the unfavorable impact of foreign currency translation by 5.0%. Operating income increased by $2.0 million during fiscal 2023 compared to fiscal 2022.
The increase was primarily attributable to base business growth, including volume growth and contract price increases, and net new business growth. The growth in revenue was offset by the unfavorable impact of foreign currency translation by 6.3%. Adjusted operating income Adjusted operating income increased by $42.6 million during fiscal 2024 compared to fiscal 2023.
Operating income increased by $81.5 million during fiscal 2024 compared to the prior year period, which was driven by base business volume growth, cost management, improved supply chain economics and favorable recovery of inflationary costs as compared to the prior year period.
Adjusted operating income increased by $92.0 million during fiscal 2024 compared to fiscal 2023. The increase was attributable to base business volume growth, cost management and improved supply chain economics and favorable recovery of inflationary costs as compared to the prior year period.
As of September 27, 2024 and September 29, 2023, our self-insurance reserves were $248.6 million and $262.0 million, respectively. Income Taxes We are subject to income taxes in the United States and in many foreign jurisdictions.
As of October 3, 2025 and September 27, 2024, our self-insurance reserves were $267.7 million and $248.6 million, respectively. Income Taxes We are subject to income taxes in the United States and in many foreign jurisdictions.
The Captive also invests in United States Treasury securities where the amount of these investments as of September 27, 2024 and September 29, 2023 was $42.3 million and $110.7 million, respectively, and recorded in "Prepayments and other current assets" on the Consolidated Balance Sheets.
The Captive previously invested in United States Treasury securities where the amount of these investments as of October 3, 2025 and September 27, 2024 was zero and $42.3 million, respectively, and recorded in "Prepayments and other current assets" on the Consolidated Balance Sheets.
Self-Insurance Reserves We self-insure for obligations related to certain risks that we retain under our casualty program, which includes general liability, automobile liability and workers’ compensation liability, as well as for certain property damage risks and employee healthcare benefit programs.
See Note 14 to the audited consolidated financial statements. 41 Table of Contents Self-Insurance Reserves We self-insure for obligations related to certain risks that we retain under our casualty program, which includes general liability, automobile liability and workers’ compensation liability, as well as for certain property damage risks and employee healthcare benefit programs.
The Facilities & Other sector increase was attributable to base business growth, which was partially offset by lost business occurring late in fiscal 2024. The Healthcare sector decrease was primarily attributable to portfolio optimization occurring late in fiscal 2023. Operating income increased by $9.9 million during fiscal 2024 compared to the prior year period.
The Facilities & Other sector increase was attributable to base business growth, which was partially offset by lost business occurring late in fiscal 2024. The Healthcare sector decrease was primarily attributable to portfolio optimization occurring late in fiscal 2023.
As of September 27, 2024, we have gross uncertain tax liabilities of $70.2 million (see Note 11 to the audited consolidated financial statements). We have a Receivables Facility agreement with four financial institutions where we sell on a continuous basis an undivided interest in all eligible accounts receivable, as defined in the Receivables Facility.
As of October 3, 2025, we have gross uncertain tax liabilities of $88.6 million (see Note 10 to the audited consolidated financial statements). 39 Table of Contents We have a Receivables Facility agreement with four financial institutions where we sell on a continuous basis an undivided interest in all eligible accounts receivable, as defined in the Receivables Facility.
Foreign currency translation unfavorably impacted revenue during fiscal 2023 by 1.4%.
Foreign currency translation unfavorably impacted revenue during fiscal 2024 by 1.7%.
Fiscal 2024 also includes the payment of a call premium on the 6.375% 2025 Notes ($23.9 million) and debt issuance costs mainly related to the refinancing of the revolving credit facility and Term A Loans ($8.5 million). Fiscal 2023 also includes debt issuance costs of $8.2 million related to United States Term B-6 Loans due 2030.
Term B-8 Loans due 2030 and the issuance of the 4.375% 2033 Notes ($16.3 million) in fiscal 2025. The prior year period includes the payment of a call premium on the 6.375% 2025 Notes ($23.9 million) and debt issuance costs mainly related to the refinancing of the revolving credit facility and Term A Loans ($8.5 million).
Fiscal 2024 Compared to Fiscal 2023 Cash Flows Provided by Operating Activities Cash provided by operating activities increased by $214.9 million during fiscal 2024 compared to the prior year period.
Cash Flows Provided by Operating Activities Cash provided by operating activities increased by $194.5 million during fiscal 2025 compared to the prior year period.
The decrease was primarily due to lower interest expense related to the repayment of the 6.375% Senior Notes due May 1, 2025 ("6.375% 2025 Notes").
Interest Expense, net Interest Expense, net, decreased 16.2% during fiscal 2024 compared to fiscal 2023. The decrease was primarily due to lower interest expense related to the repayment of the 6.375% Senior Notes due May 1, 2025 ("6.375% 2025 Notes").
Twelve Months Ended (in millions) September 27, 2024 September 29, 2023 Net income attributable to ASI stockholders $ 262.5 $ 674.1 Interest expense, net 366.7 439.6 Provision for income taxes 103.0 177.6 Depreciation and amortization 435.5 546.4 Share-based compensation expense (1) 62.6 86.9 Unusual or non-recurring (gains) and losses (2) (22.8) (422.6) Pro forma EBITDA for certain transactions (3) 0.8 4.0 Other (4)(5) 126.7 100.7 Covenant Adjusted EBITDA $ 1,335.0 $ 1,606.7 (1) Represents share-based compensation expense resulting from the application of accounting for stock options, restricted stock units, performance stock units, deferred stock units awards and employee stock purchases (see Note 13 to the audited consolidated financial statements).
Covenant Adjusted EBITDA is a measure of ASI and its restricted subsidiaries only and does not include the results of Aramark. 37 Table of Contents Twelve Months Ended (in millions) October 3, 2025 September 27, 2024 Net income attributable to ASI stockholders $ 326.4 $ 262.5 Interest expense, net 341.9 366.7 Provision for income taxes 103.6 103.0 Depreciation and amortization 476.3 435.5 Share-based compensation expense (1) 58.1 62.6 Unusual or non-recurring losses and (gains) (2) 19.5 (22.8) Pro forma EBITDA for certain transactions (3) 13.4 0.8 Other (4)(5) 125.6 126.7 Covenant Adjusted EBITDA $ 1,464.8 $ 1,335.0 (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 units awards (see Note 12 to the audited consolidated financial statements).
The increase was primarily attributable to base business growth, including higher volume within our Business & Industry and Sports, Leisure & Corrections sectors. Additionally, contract price increases, especially within our Higher Education and Corrections businesses, contributed to year-over-year growth.
FSS United States segment revenue increased by approximately 7.3% during fiscal 2024 compared to fiscal 2023. The increase was primarily attributable to base business growth, including higher volume within our Business & Industry and Sports, Leisure & Corrections sectors. Additionally, contract price increases, especially within our Higher Education and Corrections businesses, contributed to year-over-year growth.
Segment Results FSS United States Segment The FSS United States reportable segment consists of five sectors which have similar economic characteristics and comprise a single operating segment. The five sectors of the FSS United States reportable segment are Business & Industry, Education, Healthcare, Sports, Leisure & Corrections and Facilities & Other.
The five sectors of the FSS United States reportable segment are Business & Industry, Education, Healthcare, Sports, Leisure & Corrections and Facilities & Other.
As of September 27, 2024 and September 29, 2023, cash and cash equivalents at the Captive were $94.7 million and $32.8 million, respectively.
As of October 3, 2025 and September 27, 2024, cash and cash equivalents at the Captive were $133.5 million and $94.7 million, respectively.
The amounts provided relate only to existing debt obligations and do not assume the refinancing or replacement of such debt. The weighted average debt balance for each fiscal year from 2025 through 2030 is $4,835.4 million, $4,316.2 million, $3,854.5 million, $2,272.3 million, $1,284.5 million and $536.6 million, respectively.
The amounts provided relate only to existing debt obligations and do not assume the refinancing or replacement of such debt. The weighted average debt balance for each fiscal year from 2026 through 2031 is $5,421.9 million, $5,391.8 million, $4,243.7 million, $3,102.8 million, $1,678.6 million and $495.6 million, respectively.
The fiscal years ended September 27, 2024, September 29, 2023 and September 30, 2022 were each a fifty-two week period.
The fiscal year ended October 3, 2025 is a fifty-three week period, while the fiscal years ended September 27, 2024 and September 29, 2023 were each fifty-two week periods.
The Provision for Income Taxes for fiscal 2024 and fiscal 2023 was recorded at an effective tax rate of 28.2% and 20.7%, respectively. The higher effective tax rate in the current year compared to the prior year was driven by prior year favorable tax effects from the sale of our equity investment in AIM Services Co., Ltd.
The higher effective tax rate in fiscal 2024 compared to fiscal 2023 was driven by fiscal 2023 favorable tax effects from the sale of our equity investment in AIM Services Co., Ltd.
These increases in operating income more than offset: • lower non-cash income from the reduction of the contingent consideration liabilities related to acquisition earn outs, net of expense ($77.5 million) (see Note 17 to the audited consolidated financial statements); • prior year income from proceeds associated with possessory interest at one of the National Park sites ($36.3 million) (see Note 1 to the audited consolidated financial statements); • higher personnel costs from incentive expenses related to the annual bonus; • lower income related to favorable loss experience under our general liability, automobile liability and workers' compensation liability programs when compared to the prior year ($21.1 million); • non-cash inventory adjustment based on expected usage for certain products within the Corrections business ($18.2 million); • prior year labor related tax credits provided from governmental assistance programs ($12.5 million); and • negative impact of foreign currency translation ($12.0 million).
Key drivers of the year-over-year increase include: • Food and support service costs increased by $332.9 million due to higher food and beverage costs associated with business growth and non-cash adjustments to inventory based on expected usage for certain products within the Corrections business ($18.2 million). • Personnel costs increased by $449.5 million due to overall business expansion, the absence of prior year labor-related tax credits provided from governmental assistance programs ($12.5 million) and a charge related to a ruling on a foreign payroll tax matter in fiscal 2024 ($6.8 million), partially offset by lower net severance charges ($19.9 million). • Other direct costs grew by $417.9 million, driven by: business growth; lower non-cash income from the reduction of the contingent consideration liabilities related to acquisition earn outs, net of expense ($77.5 million) (see Note 16 to the audited consolidated financial statements); prior year income from proceeds associated with possessory interest at one of the National Park sites ($36.3 million) (see Note 1 to the audited consolidated financial statements); higher incentive expenses related to the annual bonus; and lower income related to favorable loss experience under our general liability, automobile liability, and workers' compensation liability programs ($21.1 million).
The Facilities & Other and Healthcare sectors had high-single digit operating income margins, consistent with prior year. The Education sector had high-single digit operating income margins compared to mid-single digit operating income margins in the prior year. The Sports, Leisure & Corrections sector had mid-single digit operating income margins, consistent with prior year.
The Healthcare and Education sectors had high-single digit adjusted operating income margins, consistent in both fiscal 2025 and the prior year period. The Business & Industry sector had high-single digit adjusted operating income margins in fiscal 2025 compared to mid-single digit adjusted operating income margins in the prior year period.
The weighted average interest rate of our existing debt obligations for each fiscal year from 2025 through 2030 is 2.19%, 2.97%, 3.83%, 5.53%, 6.89% and 6.96%, respectively (see Note 6 to the audited consolidated financial statements for the terms and maturities of existing debt obligations).
The weighted average interest rate of our existing debt obligations for each fiscal year from 2026 through 2031 is 4.03%, 4.32%, 5.03%, 5.73%, 5.56% and 4.15%, respectively (see Note 5 to the audited consolidated financial statements for the terms and maturities of existing debt obligations).
Operating income increased by $72.8 million during fiscal 2024 compared to the prior year period. The increase was mainly attributable to the volume growth in base business, net new business and improved supply chain economics.
Adjusted operating income Adjusted operating income increased by $41.7 million during fiscal 2025 compared to the prior year period. The increase was mainly attributable to growth in base business and improved supply chain economics. The increase in adjusted operating income more than offset higher expenses incurred related to new business and higher depreciation expense.
Cash Flows Provided by (Used in) Investing Activities The net cash flows provided by investing activities during fiscal 2023 was primarily impacted by proceeds from the sales of equity investments ($633.2 million) (see Note 1 to the audited consolidated financial statements) and proceeds from the maturity of United States Treasury securities related to our captive insurance subsidiary ($80.0 million), partially offset by purchases of property and equipment and other ($383.5 million), purchases of United States Treasury securities related to our captive insurance subsidiary ($110.0 million) and acquisitions of certain businesses ($50.2 million).
Cash Flows Used in Investing Activities The net cash flows used in investing activities during fiscal 2025 was primarily impacted by purchases of property and equipment and other ($489.2 million), acquisitions of certain businesses ($263.6 million) and acquisition of certain equity investments ($25.9 million), partially offset by proceeds from the maturity of United States Treasury securities related to our captive insurance subsidiary ($43.9 million) and proceeds from disposal of property and equipment ($22.7 million).
As of September 27, 2024, we had $672.5 million of cash and cash equivalents, $42.3 million of marketable securities, $1,341.6 million of availability under our senior secured revolving credit facility and $600.0 million of availability under the Receivables Facility. A significant portion of our cash and cash equivalents are held in mature, liquid geographies where we have operations.
As of October 3, 2025, we had approximately $2.4 billion of liquidity comprised of $639.1 million of cash and cash equivalents, $1,161.7 million of availability under our senior secured revolving credit facility and $625.0 million of availability under the Receivables Facility. A significant portion of our cash and cash equivalents are held in mature, liquid geographies where we have operations.
These increases in operating income more than offset the following: 30 Table of Contents • lower non-cash income from the reduction of the contingent consideration liabilities related to acquisition earn outs, net of expense ($77.5 million) (see Note 17 to the audited consolidated financial statements); • prior year income from proceeds associated with possessory interest at one of the National Park sites ($36.3 million) (see Note 1 to the audited consolidated financial statements); • lower income related to favorable loss experience under our general liability, automobile liability and workers' compensation liability programs ($21.1 million); • higher personnel costs from incentive expenses related to the annual bonus; and • non-cash inventory adjustment based on expected usage for certain products within the Corrections business ($18.2 million).
The increase in adjusted operating income more than offset the prior year income related to proceeds associated with possessory interest at one of the National Park sites ($36.3 million) (see Note 1 to the audited consolidated financial statements), lower income related to favorable loss experience under our general liability, automobile liability and workers' compensation liability programs ($21.1 million) and higher incentive expenses related to the annual bonus.
The Healthcare and Facilities & Other sectors had high-single digit operating income margins, consistent in both fiscal 2023 and fiscal 2022. The Education and Sports, Leisure & Corrections sectors had mid-single digit operating income margins, consistent in both fiscal 2023 and fiscal 2022.
The Education and Sports, Leisure & Corrections sectors had high-single digit adjusted operating income margins in fiscal 2024 compared to mid-single digit adjusted operating income margins in fiscal 2023. The Business & Industry sector had mid-single digit adjusted operating income margins in fiscal 2024, compared to low-single digit adjusted operating income margins in fiscal 2023.
These increases in operating income more than offset the following: • increased inflationary costs in food and labor; • non-cash charges for the impairment of operating lease right-of-use assets and property and equipment related to certain real estate properties ($19.0 million) (see Note 1 to the audited consolidated financial statements); and • non-cash charge for the impairment of computer software assets ($8.2 million). 34 Table of Contents FSS International Segment FSS International segment revenue increased by approximately 19.3% during fiscal 2023 compared to fiscal 2022.
These increases were partially offset by prior year non-cash charges for the impairment of operating lease right-of-use assets and property and equipment related to certain real estate properties ($19.0 million) (see Note 1 to the audited consolidated financial statements). Depreciation and amortization Depreciation and amortization expenses increased by $25.8 million in fiscal 2024 compared to fiscal 2023.
Changes in judgment due to the evaluation of new information resulting in the recognition, derecognition or remeasurement of a tax position taken in a prior annual period are recognized separately in the quarter of the change. 27 Table of Contents Foreign Currency Fluctuations The impact from foreign currency translation 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.
Changes in judgment due to the evaluation of new information resulting in the recognition, derecognition or remeasurement of a tax position taken in a prior annual period are recognized separately in the quarter of the change.
We expect these conditions to continue in the near-term, and we regularly evaluate and believe we take appropriate actions to mitigate risk in these areas. These actions include management of operating costs, including supply chain initiatives and pricing actions, and managing interest rate risk through the use of interest rate swaps.
These actions include management of operating costs, including supply chain initiatives and pricing actions, and managing interest rate risk through the use of interest rate swaps and other risk mitigation strategies.
During fiscal 2024 and fiscal 2023, we received proceeds of $6.5 million and $21.4 million, respectively, related to favorable loss experience in older insurance years under our general liability, automobile liability and workers' compensation programs.
During the prior year period, we received proceeds of $6.5 million related to favorable loss experience in older insurance years under our general liability, automobile liability and workers' compensation programs. "Payments made to clients on contracts" resulted in a lower use of cash during fiscal 2025 due to timing of client contract commitments.
Under the Receivables Facility, we and certain of our subsidiaries transfer without recourse all of 41 Table of Contents our accounts receivable to ARAMARK Receivables, LLC. As collections reduce previously transferred interests, interests in new, eligible receivables are transferred to ARAMARK Receivables, LLC, subject to meeting certain conditions.
As collections reduce previously transferred interests, interests in new, eligible receivables are transferred to ARAMARK Receivables, LLC, subject to meeting certain conditions.
Cash used in financing activities more than offset proceeds from the issuance of new domestic and foreign term loans due 2029 ($499.1 million). See Note 6 to the audited consolidated financial statements for additional information on borrowing activities during fiscal 2024.
Cash used in financing activities more than offset proceeds from the issuance of new domestic and foreign term loans due 2029 ($499.1 million). The "Other financing activities" caption reflects a use of cash during fiscal 2025, primarily related to debt issuance costs related to the refinancing of the U.S.
The Business & Industry sector had mid-single digit operating income margins compared to low-single digit operating income margins in the prior year. FSS United States segment revenue increased by approximately 7.3% during fiscal 2024 compared to the prior year period.
The Sports, Leisure & Corrections sector had mid-single digit adjusted operating income margins in fiscal 2025 compared to high-single digit adjusted operating income margins in the prior year period. Adjusted operating income increased by $65.8 million during fiscal 2025 compared to the prior year period.
The increase was attributable to higher expenses related to the separation and distribution of the Uniform segment ($9.1 million) (see Note 2 to the audited consolidated financial statements) and higher personnel costs from incentive expenses related to the annual bonus, partially offset by lower share-based compensation expense ($13.7 million) compared to the prior year period (see Note 13 to the audited consolidated financial statements). 31 Table of Contents Fiscal 2023 Compared to Fiscal 2022 The following tables present an overview of our results on a consolidated and segment basis with the amount of and percentage change between periods for the fiscal years 2023 and 2022 (dollars in millions).
Selling and general corporate expenses Selling and general corporate expenses increased by $9.9 million during fiscal 2024 compared to fiscal 2023 primarily driven by higher selling personnel costs, higher expenses related to the separation and distribution of the Uniform Segment ($9.1 million) (see Note 2 to the audited consolidated financial statements) and higher incentive expenses related to the annual bonus, partially offset by lower share-based compensation expenses ($13.7 million) compared to fiscal 2023 (see Note 12 to the audited consolidated financial statements).
FSS International Segment FSS International segment revenue increased by approximately 10.6% during fiscal 2024 compared to the prior year period. The increase was primarily attributable to base business growth, including volume growth and contract price increases, and net new business growth. The growth in revenue was offset by the unfavorable impact of foreign currency translation by 6.3%.
The increase was primarily attributable to both base business and net new business growth, as well as the estimated impact of the fifty-third week (approximately 1%). The growth in revenue was offset by the unfavorable impact of foreign currency translation by 1.4%.
Fiscal Year Ended September 27, 2024 September 29, 2023 Cost of services provided (exclusive of depreciation and amortization) $ % of Revenue $ % of Revenue FSS United States $ 11,432.3 90.9 % $ 10,615.6 90.6 % FSS International 4,542.7 94.2 % 4,159.1 95.4 % $ 15,975.0 91.8 % $ 14,774.7 91.9 % The following table presents the percentages attributable to the components in cost of services provided (exclusive of depreciation and amortization) for fiscal 2024 and fiscal 2023.
Cost of services provided (exclusive of depreciation and amortization) The following table presents the components in cost of services provided (exclusive of depreciation and amortization) for fiscal 2024 as compared to fiscal 2023 (in millions): Cost of services provided (exclusive of depreciation and amortization) components Fiscal Year Ended Change As Percentage of Revenue September 27, 2024 September 29, 2023 $ % September 27, 2024 September 29, 2023 Food and support service costs $ 4,771.6 $ 4,438.7 $ 332.9 7.5 % 27.4 % 27.6 % Personnel costs 7,109.1 6,659.6 449.5 6.7 % 40.9 % 41.4 % Other direct costs 4,094.3 3,676.4 417.9 11.4 % 23.5 % 22.9 % $ 15,975.0 $ 14,774.7 $ 1,200.3 8.1 % 91.8 % 91.9 % Cost of services provided (exclusive of depreciation and amortization) increased by $1.2 billion in fiscal 2024 compared to fiscal 2023, primarily driven by an increase in revenue as discussed above.
(5) "Other" for the twelve months ended September 29, 2023 includes the reversal of contingent consideration liabilities related to acquisition earn outs, net of expense ($85.7 million), charges related to our spin-off of the Uniform segment ($51.1 million), 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 ($47.5 million), net severance charges ($37.5 million), non-cash charges for the impairment of operating lease right-of-use assets and property and equipment related to certain real estate properties ($29.3 million), income related to non-United States governmental wage subsidies ($12.5 million), the impact of hyperinflation in Argentina ($10.4 million), non-cash charges related to information technology assets ($8.2 million), the gain from the sale of land ($6.8 million), net multiemployer pension plan withdrawal charges ($5.9 million), labor charges and other expenses associated with closed or partially closed locations from adverse weather ($5.4 million), legal settlement charges ($2.7 million), non-cash charges for inventory write-downs ($2.6 million), the gain from the change in fair value related to certain gasoline and diesel agreements ($1.9 million) and other miscellaneous expenses.
(4) "Other" for the twelve months ended October 3, 2025 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 ($54.2 million), severance charges ($36.4 million), contingent consideration expense related to acquisition earn outs ($11.1 million), non-cash charges for the impairments of assets ($8.9 million), the impact of hyperinflation in Argentina ($5.7 million), merger and integration charges ($4.1 million), legal charges related to an anti-trust review ($2.5 million) and other miscellaneous expenses.
The increase was primarily due to higher interest rates related to our senior secured term loan facilities, our Receivables Facility and our revolving credit facility. The Provision for Income Taxes for fiscal 2023 and fiscal 2022 was recorded at an effective tax rate of 20.7% and 17.9%, respectively.
Provision for Income Taxes from Continuing Operations The Provision for Income Taxes for fiscal 2024 and fiscal 2023 was recorded at an effective tax rate of 28.2% and 20.7%, respectively.
These changes in operating assets and liabilities more than offset accrued expenses by $72.8 million resulting in a lower source of cash during fiscal 2024 compared to the prior year period primarily due to the increase in income tax payments, higher commission payments in our Sports & Entertainment business, timing of interest payments on lower borrowings, lower advances received in our Higher Education business, the timing of insurance and other payments; partially offset by lower payments related to the annual bonus and timing of payroll taxes.
Additionally, cash provided by operating activities was favorably impacted by the change in operating assets and liabilities compared to the prior year period by $37.4 million, which was primarily due to: • Accrued expenses by $66.1 million, resulting in a greater source of cash primarily due to the timing of interest, insurance and lower commission payments, partially offset by higher employee incentive payments. • Receivables by $25.3 million, resulting in a lower use of cash due to the timing of collections; and • Accounts payable by $9.7 million, resulting in a greater source of cash due to the timing of disbursements These changes in operating assets and liabilities more than offset: • Prepayments by $43.4 million, resulting in a higher use of cash due to the timing of insurance and other annual contractual payments compared to the prior year period; and • Inventories by $20.3 million, resulting in a higher use of cash due to increased purchases from new business.
See Note 6 to the audited consolidated financial statements for additional information on borrowing activities during fiscal 2023. During fiscal 2022, cash used in financing activities was driven by payments of dividends ($113.1 million) and the repayment of 5.000% 2025 Senior Notes and foreign term loans ($66.7 million), partially offset by borrowing under the Receivables Facility ($104.9 million).
See Note 5 to the audited consolidated financial statements for additional information on borrowing activities during fiscal 2025. 36 Table of Contents During the prior year period, cash used in financing activities was primarily driven by the repayment of debt instruments, including the 6.375% 2025 Notes ($1,500.0 million), the foreign denominated term loans due 2026 ($259.4 million) and the revolving credit facility ($166.1 million), the payments of dividends ($99.9 million) and the repurchase of common stock through taxes paid by us when we withhold shares upon an employee's exercise or vesting of equity awards to cover income taxes ($14.4 million).
During fiscal 2023, we recognized a $377.1 million pre-tax gain on the sale of our 50% ownership interest in AIM Services Co., Ltd., which was partially offset by a $1.1 million pre-tax loss from the sale of a portion of our equity investment in the San 29 Table of Contents Antonio Spurs NBA franchise.
Operating income Operating income increased by $81.5 million during fiscal 2024 compared to fiscal 2023 as a result of the aforementioned changes. 32 Table of Contents Gain on Equity Investments, net During fiscal 2024, we sold our remaining equity investment ownership interest in the San Antonio Spurs NBA franchise in a taxable transaction resulting in a pre-tax gain on sale of this equity investment of $25.1 million (see Note 1 to the audited consolidated financial statements).

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

4 edited+0 added−0 removed2 unchanged
Biggest change(US$ equivalent in millions) Expected Fiscal Year of Maturity As of September 27, 2024 2025 2026 2027 2028 2029 Thereafter Total Fair Value Debt: Fixed rate $ 923 $ 7 $ 6 $ 1,153 $ 3 $ 35 $ 2,127 $ 2,097 Average interest rate 4.3 % 6.0 % 6.0 % 5.0 % 6.0 % 6.0 % 4.7 % Variable rate $ 45 $ 38 $ 877 $ 767 $ 440 $ 1,031 $ 3,198 $ 3,204 Average interest rate 5.8 % 6.1 % 7.1 % 7.2 % 6.0 % 7.2 % 7.0 % Interest Rate Swaps: Receive variable/pay fixed $ 800 $ — $ 950 $ 500 $ — $ — $ 2,250 $ 49 Average pay rate 1.5 % — % 2.6 % 1.5 % — % — % Average receive rate 5.2 % — % 5.2 % 5.2 % — % — % All our gasoline and diesel fuel agreements matured during fiscal 2024.
Biggest change(US$ equivalent in millions) Expected Fiscal Year of Maturity As of October 3, 2025 2026 2027 2028 2029 2030 Thereafter Total Fair Value Debt: Fixed rate $ 12 $ 11 $ 1,159 $ 6 $ 5 $ 510 $ 1,703 $ 1,674 Average interest rate 5.8 % 5.8 % 5.0 % 5.8 % 5.8 % 4.5 % 4.9 % Variable rate $ 23 $ 19 $ 748 $ 610 $ 2,359 $ — $ 3,759 $ 3,772 Average interest rate 4.0 % 4.6 % 5.9 % 4.5 % 6.2 % — % 5.8 % Interest Rate Swaps: Receive variable/pay fixed $ — $ 950 $ 1,500 $ — $ — $ — $ 2,450 $ 16 Average pay rate — % 2.6 % 3.0 % — % — % — % Average receive rate — % 4.2 % 4.2 % — % — % — % Item 8.
Item 8. Financial Statements and Supplementary Data See Financial Statements and Schedule beginning on page S-1. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Not applicable. 45 Table of Contents
Financial Statements and Supplementary Data See Financial Statements and Schedule beginning on page S-1. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Not applicable. 43 Table of Contents
The information below summarizes our market risks associated with debt obligations and other significant financial instruments as of September 27, 2024 (see Notes 6 and 7 to the audited consolidated financial statements). Fair values were computed using market quotes, if available, or based on discounted cash flows using market interest rates as of the end of the respective periods.
The information below summarizes our market risks associated with debt obligations and other significant financial instruments as of October 3, 2025 (see Notes 5 and 6 to the audited consolidated financial statements). Fair values were computed using market quotes, if available, or based on discounted cash flows using market interest rates as of the end of the respective periods.
For debt obligations, the table presents principal cash flows and related interest rates by contractual fiscal year of maturity. Variable interest rates disclosed represent the weighted-average rates of the portfolio at September 27, 2024. For interest rate swaps, the table presents the notional amounts and related weighted-average interest rates by fiscal year of maturity.
For debt obligations, the table presents principal cash flows and related interest rates by contractual fiscal year of maturity. Variable interest rates disclosed represent the weighted-average rates of the portfolio at October 3, 2025. For interest rate swaps, the table presents the notional amounts and related weighted-average interest rates by fiscal year of maturity.

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