Aramark — Call Transcript 2026

Good morning, and welcome to Aramark's second quarter fiscal 2026 earnings results conference call. My name is Kevin, and I'll be your operator for today's call. At this time, I'd like to inform you this conference is being recorded for rebroadcast and that all participants are on a listen-only mode. We will open the conference call for questions at the conclusion of the company's remarks. I will now turn the call over to Felise Kissell, Senior Vice President, Investor Relations and Corporate Development. Ms. Kissell, please proceed. Thank you, welcome to Aramark's earnings conference call and webcast. This morning, we'll be hearing from our CEO, John Zillmer, as well as our CFO, Jim Tarangelo. As always, there are accompanying slides for this call that can be viewed through the webcast and are also available on the IR website for easy access. Our notice regarding forward-looking statements is scheduled in our press release. During this call, we will be making comments that are forward looking. Actual results may differ materially from those expressed or implied as a result of various risks, uncertainties, and important factors, including those discussed in the Risk Factors, MD&A, and other sections of our annual report on Form 10-K and SEC filings. We will be discussing certain non-GAAP financial measures. A reconciliation of these items to U.S. GAAP can be found in our press release and IR website. With that, I will now turn the call over to John. Good morning, everyone, and welcome to our fiscal 2nd quarter earnings call. Thank you for joining us. Our financial results underscore the continued momentum occurring at the company, driven by our unwavering focus on growth through delivering hospitality excellence. Jim and I will review the key contributors to the quarter's outperformance and our confidence in achieving the outlook for fiscal 2026. We enter the second half of the year with exceptionally strong business trends, including, first, a client retention rate exceeding 98% across the company. Second, organic revenue growth at record levels in both FSS U.S. and international. Third, new client wins that have already reached an unprecedented total of $1 billion this fiscal year to date. Lastly, we're very excited about our entry into the hyperscale AI data center market, where we believe Aramark is uniquely positioned to deliver an integrated suite of capabilities. As we execute on our newly awarded multi-year engagement with a top global hyperscaler to provide comprehensive hospitality and facility services across multiple AI data center locations, this client is expected to become the largest in our portfolio. We see significant runway for additional growth with this client and other hyperscalers. In the second quarter, Aramark's organic revenue grew 12% to $4.8 billion, including an estimated 3% benefit from the calendar shift. As a reminder, the calendar shift will ultimately have no bearing on the full year results. Our strong revenue performance was due to broad-based net new business and base business growth across sectors and geographies. Throughout the organization, our client-led growth strategies consistently offer a differentiated guest experience while providing operational rigor, unparalleled supply chain capabilities, and advanced technology solutions. Moving to the business segments. FSS U.S. organic revenue increased 12% to $3.4 billion. Would have increased approximately 8% without the calendar shift benefit, which occurred primarily in education, with collegiate hospitality also experiencing growth in residential meal plans associated with higher student enrollment. Revenue growth in the second quarter for the U.S. was additionally driven by sports and entertainment, which had a strong opening day for Major League Baseball, with increased fan attendance and record per capita spending. Sports and Entertainment also participated in several marquee events, including the World Baseball Classic and the NCAA basketball tournament. Workplace Experience sustained double-digit growth as a result of significant new business contributions, exceptionally high retention rates, and elevated catering demand. Refreshments expanded its client base, building incremental route density across several key geographic areas, including Central New York, the Southeast, the Pacific Northwest, while increasing the average size of new wins by 15%. Healthcare completed the successful launch of Penn Medicine, which is now fully operational. As reviewed on the last earnings call, the team is set to mobilize RWJBarnabas Health this summer. During the quarter, FSS U.S. achieved several notable client wins, including Suffolk University and the University of Wisconsin–Oshkosh in Collegiate Hospitality, which will fully launch in the new academic year. Toyota in Workplace Experience, where we recently began operations at their North American headquarters. The Oklahoma Department of Corrections, an example of our expanding presence in state-run correctional facilities. Stone Mountain in Destinations, the most visited attraction in Georgia, where we start offering food and beverage, lodging, retail, tours, and camping next month ahead of the peak summer tourist season. As hyperscale AI data center development accelerates and demand for support services grows in tandem, we launched Aramark Nexus, a new platform delivering integrated hospitality and workforce support services in large scale, complex, and often remote operating environments where we believe we have proven expertise. We've been selected by a top global hyperscaler to support thousands of workers in providing employee housing, dining and hospitality hubs with modern lifestyle amenities and entertainment, transportation to and from construction sites, and full housekeeping and guest services delivered through a unified management structure. Our engagement is underway and set to begin this fiscal year. We expect this new suite of services to generate margins above the company average and achieve attractive investment returns. The significant growth opportunity currently is not reflected in our fiscal 26 financial outlook. We will provide updates as we launch, grow, and scale the business. As I mentioned earlier, we see substantial growth potential in hyperscale data and operation centers. The international segment achieved another quarter of consistent compounded growth, with organic revenue increasing 13% to $1.4 billion, inclusive of an estimated 1% benefit from the calendar shift. This exceptional revenue performance was broad-based across every region, attributed to double-digit growth in Europe and Canada and high single-digit growth in emerging markets. Business momentum was led by sports and entertainment, education, extractive services, and business and industry, highlighting the depth of our in-country expertise and strong cross-border collaboration. All countries within our international portfolio are driving favorable net new business underpinned by an extensive sales pipeline. Second quarter new client awards ranged from an increased presence in festivals such as Brockwell Live in the U.K., serving hundreds of thousands of visitors, to the new T-Mobile Arena in the Czech Republic, scheduled to host its first event later this fall, and XinHua Hospital in China, a leading institution in clinical care and medical education. Now to global supply chain. We continue to see rapid GPO expansion in multiple categories, including sizable growth in golf and spa destinations within the U.S. and internationally across the hospitality industry. Inflation continues to track in line with our expectations throughout all regions. Aramark remains resilient amid geopolitical uncertainty, including the recent volatility occurring in the energy markets. The significant scale of our food service agreements provides efficient cost flexibility and enables us to remain proactive in managing strategic pricing and sourcing actions. Bottom line, we believe the organization is well equipped to navigate a broader macro backdrop. Before handing the call over to Jim, I want to reinforce the message we've been sharing with our teams across the country. We are executing our growth strategies with focus and discipline. Our ambitions for Aramark have never been higher, and we are consistently setting new milestones. We're proud of the performance the teams have delivered, and we remain fully committed to working together to build on this continued momentum and drive the business to even greater levels of success. Jim, I'll now turn the call over to you. Thanks, John, and good morning, everyone. We've made great progress across our key operating metrics during the first half of fiscal 2026, delivering strong financial performance. Our results in the second quarter reflected continued momentum in driving both top and bottom line results from strategies that have not only advanced the current state of the business, but we believe have also positioned us for sustained success. As we move into the second half of fiscal 2026, we remain focused on disciplined execution of our growth efforts across the organization with a mindset of creating significant shareholder value. As John reviewed, we reported organic revenue growth in the second quarter of more than 12% versus the prior year period, led by broad-based net new business, higher like-for-like volumes, and the favorable impact of the calendar shift, which was approximately 3%. For the first half of fiscal 2026, organic revenue growth was 8.5%, with the calendar shift having no effect on the first half growth results. Regarding second quarter profit growth, operating income was $220 million, up 26% versus the prior year. Adjusted operating income was $258 million, up 24% on a constant currency basis, and AOI margins increased 50 basis points. The strong profit growth was a result of higher revenue, productivity gains in food and labor supported by our technology capabilities, supply chain efficiencies, and disciplined above-unit cost management. The calendar shift also benefited AOI in the quarter by an estimated $25 million or 12%. Turning to the business segments, the U.S. reported AOI growth of 27% compared to the same period last year. Growth was driven by increased revenue levels, technology-enabled productivity gains in food and labor, supply chain efficiencies, and disciplined above-unit cost management. The calendar shift also benefited AOI growth by approximately 13%. Once again, the international segment had double-digit AOI growth in the quarter, increasing 12% on a constant currency basis. This performance reflected higher base business volume, new business maturity, and strengthened supply chain economics, which more than offset some in-country investments during the quarter to support significant growth. Turning to the remainder of the income statement, interest expense was $82 million in the quarter, and the adjusted tax rate was 25.3%. Our quarterly performance resulted in GAAP EPS of $0.38 and adjusted EPS of $0.49, an increase of 40% compared to the prior year period on a constant currency basis. The calendar shift benefited adjusted EPS growth in the quarter by approximately 20%. With respect to cash flow, we generated a significant cash inflow in the quarter from the contribution of higher earnings and favorable working capital. Net cash provided by operating activities in the second quarter was $400 million, an increase of $144 million or 56% compared to the prior year period. Free cash flow was $305 million, which improved by $164 million or 116% year-over-year. The strong free cash flow in the quarter enabled us to proactively repay $55 million of term loans. We also continued to repurchase shares under our current share repurchase program. To date, we have repurchased approximately $194 million of Aramark stock. We remain disciplined in our capital allocation priorities as we are committed to reaching a leverage ratio below 3x by the end of the fiscal year. At quarter end, the company had more than $1.4 billion in cash availability. Finally, let me wrap up with our performance expectations for the remainder of fiscal 2026. We are extremely pleased with our year-to-date financial results and the positive trends occurring in the business, including a strong revenue trajectory from the net new business and continued base business expansion. As a result, we have updated our fiscal 2026 outlook for organic revenue growth to the high end of our 7%-9% range, and we are reaffirming our expectations for AOI growth to be up 12%-17% and adjusted EPS growth between 20% and 25%. We continue to expect accelerated AOI margin expansion this fiscal year consistent with our expectations, capitalizing on the company's multiple operating levers while mobilizing a record level of new business openings. As John mentioned, the outlook for fiscal 2026 does not currently reflect the multi-year engagement with a top global hyperscaler that is currently underway. In summary, we are seeing strong momentum throughout the company as our teams continue to execute our growth strategies led by extensive new business wins and high client retention rates. We also believe our entry into the hyperscale data center market further advances the company's growth opportunities. These positive trends in the business are translating into strong revenue and profitability, positioning the company well for continued success this year. We are confident in our ability to build on this momentum into fiscal 2027. As John always says, we wouldn't be where we are today without our teams around the world, and we thank them for all their efforts. We could not be more excited about the future. Thank you, everyone. Operator, we will now open the call for questions. Thank you. We'll now begin the question and answer session. If you have a question, please press star then one one on your touch-tone phone. If you're using a speakerphone, you may need to pick up a handset before pressing the numbers. In order to accommodate participants in the question queue, please limit yourself to one question, one follow-up. To remove yourself from the queue, please press star one one again. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Jaafar Mestari with BNP Paribas. Your line is open. Hi. Good morning. I had two questions, please. Firstly, on your $1 billion of signings to date, we don't have the exact context for where you were at the same stage last year, but it certainly looks strong. You ended the year at $1.6 billion last year. If you look at the fabric of what you counted in this $1 billion, would you say that the timeline over which these signings are expected to ramp up is fully comparable to historical signings? It's big numbers. Just wondering if to some extent there are some longer projects in there, things that would ramp up over 2027, 2028, for example. On your guidance updates, small upgrades to where you see organic growth, no change to where you see adjusted EBITs and EPS for the full year. It's a very small delta, but effectively you're implying 5 basis points lower margins if my math is correct. Am I splitting hair or are you accounting for contract startups, or just some caution because another year of record signings would mean another year, of high incentive compensation for your sales teams eventually? Yeah, John. Sure. Go ahead, John. Okay. I'll take it. Yeah. I'll start, John, and you can chime in. Yeah, in terms of the pacing, Jaafar, we are certainly ahead of schedule with the $1 billion of signings. As you noted last year, the total was $1.6 billion. We are ahead of where we expect it to be at this point. With those signings, we signed a number of large accounts this year, and opening RWJBarnabas and Stone Mountain, Oklahoma Department of Corrections. Very large accounts which are opening in year. One of the good things is, right, we signed a lot of large accounts. We're opening many of those accounts in the second half of the year, and that leads to your second question on margin. Thanks to the success we've seen in selling we're opening a record level of new business in year, and we're still covering those start-up costs and expect to achieve the 30 basis points to 40 basis points of margin improvement that we've been generating. Those margins will scale up as they normally do, and yeah, we'll continue to provide tailwinds into fiscal 2027. I would just add that, you know, I think the scale-up of that new business obviously is very important to us. We haven't included in the projection in the second half of the year any revenues and/or profitability from the hyperscaler ramp-up, which will take place beginning very soon. There'll be some impact from that that hasn't been projected into the forecast. I think all in all, we do expect continued margin acceleration through the balance of the year. You know, we think it was prudent to go ahead and be slightly conservative, but we have very strong expectations for the business going forward. Thank you. Our next question comes from Ian Zaffino with Oppenheimer. Your line is open. Hi, great. Thank you very much. You know, really nice quarter here. Seems like these are some of the best results, you know, really trajectory of the business that you've delivered since I've effectively been covering the stock. It's been a while here. It seems like you're firing on all cylinders. Is that kind of the right and accurate read? You know, maybe talk about the sustainability of kind of what we're seeing now into future quarters. Thanks. Yeah, thank you very much, Ian. Absolutely, we believe in the sustainability of the business. You know, we think we have a very strong leadership team delivering across the board in all geographies and just the continued momentum throughout the business. You know, we have worked very hard to build the organization. It's delivering on those commitments and on those results. So yes, I do believe we're operating on all cylinders. That does not mean that we don't have opportunities for continued improvement and continued growth in the organization. I think the company is very disciplined and focused on that. We are proud of where we are, but wanna get better every day. I do think, you know, that this quarter was very important to us. You know, we believed in the growth narrative that we had been describing over the last several quarters, and what you're seeing is it coming to fruition and us delivering on those expectations. We're confident in our ability to maintain this trajectory and to continue into, 2027 and beyond. Okay. Thank you. If I could just drill down on Nexus a little bit. You know, I know you have some agreement and confidentiality stuff going on here, but can you maybe give us an idea of, you know, maybe a little bit more of the economics here as far as, you know, will you be doing or it's overseeing any of the construction? I'm just trying to think about it from a CapEx perspective. Also, can you talk about maybe your market position here, your competitive advantage, and maybe also what margins might look like in this business vis-à-vis your other businesses? I know there's a lot there, but any color you could give me would be helpful. Thanks. I'll start off, and Jim can add to this as well. You know, first of all, yes, we are under a confidentiality agreement with the this customer, and so we can't disclose the terms of the agreement. I think what we've talked about is the fact that they'll be above company average margins and we expect very strong financial returns. I would characterize this as a capital-light business for us. We are not investing in the construction process, you know, as partners in this engagement. That will limit our capital requirement for it. We won't be overseeing the actual construction, but we'll be overseeing all the activities that support the workforce doing the work. It's very comprehensive, you know, from hospitality with lodging, entertainment, food, support services, you name it, we'll be doing it. It's a one-stop solution for the company buying these services. That's what's attractive to them. This unique set of capabilities is what we deliver in the national parks. It's what we deliver in extractive services in the mines in Chile, in the remote camps in Canada. It's something we're very good at and have strong management disciplines and capabilities around it. As you know, there are hundreds of these kinds of projects under consideration in the U.S. alone and many more globally. We see it as a very significant addition to the total addressable market that is uniquely positioned against the capabilities that we have. We like the growth trajectory coming from it. We're investing significant resources and talent in the execution of this. That's also why this company selected us because they saw the commitment we were willing to make to it right up front. It's exciting, and we'll be able to talk more and disclose more as the summer goes on. I would say at the simplest or lowest possible level, it is going to be accretive to margins and going to be accretive to earnings significantly. All right. Great work. Thank you very much. Thank you. Our next question comes from Andrew Steinerman with JPMorgan. Your line is open. Hi there. I just wanna go back to the quarter, the second fiscal quarter organic revenue growth. Could you just give us a sense of quantity of how much net new and base growth contributed to the quarter, and which drove the kind of upside to budgeted figures? Sure. It's Morning, Andrew. For Q2, specifically, the contribution from new was about 5%. Base business was about 4%. That was comprised of 3% pricing and about 1% volume, so that totals to 9%. Then as we mentioned, there's a 3% benefit from the 53rd week which gets you to the 12%. Year to date, I would say similar, more like 4.5% on the new business. I would say a combination of in terms of exceeding expectations, a little bit on the new, as we mentioned, opening more than we expected in year. Then good base business performance, particularly in sports. You know, we talked about a great successful opening of the baseball season. The season did open a little bit earlier this year with a few more games in Q2 than Q3. Those are the main drivers. Okay, thank you. Our next question comes from Toni Kaplan with Morgan Stanley. Your line is open. Hi, good morning. This is Yehuda Silverman on for Toni Kaplan. Just wanted to focus on retention a little bit. Like, 98% extremely high following similar path to last year so far. Can you talk about what particularly is driving your customers to remain for longer? Are you seeing any difference in terms of contract duration or cost and deal structure with new renewals? I'm sorry, you were breaking up a little bit on the second half of the question. Could you repeat that? Yeah, sorry. I'll repeat it. Retention, 98% was very high following a similar path to last year. I was just curious if you could talk about what's driving customers to remain for longer and if you're seeing any difference in terms of contract duration or cost or deal structure with these new contracts. Yeah, no, first of all, I think it's performance related. We are retaining more business because our customers recognize the value that Aramark brings to their operations. That's always when you retain customers, it's generally 'cause you're doing a good job. We are hyper-focused on that discipline, on making sure that we're delivering on our customers' expectations, and that's leading to these higher retention levels that occurred both last year and are occurring this year. We're, you know, feel very good about that discipline. I would say no difference in terms of tenure of contracts. Those contracts that have expiration dates are coming up as they normally would. We continue to try to proactively retain that business and renew those contracts. I would say in general, the trends we're seeing in the retention rate are basically aligned to our improved performance overall and our continued discipline around customer relationship management. It's really driving the results. Great. Thank you. Just one quick follow-up on facilities. You've highlighted the commitment to sales opportunities within B&I and education. Can you talk about how these have gone so far and when we could expect this to meaningfully show? I'm sorry. Again, I'm having trouble. I am remote unfortunately today, so the speaker phone that I'm on is not working very well. Could you repeat that? Sorry about that. Just highlighting facilities, I was curious if you could talk a little bit more about the commitment to sales opportunities within B&I and education, and how these have gone so far and what the expectations for this could be going forward. Sure, absolutely. I apologize for my miss. No, there is a significant commitment to selling facility services in the B&I marketplace and in higher education. We continue to be very successful in that regard. Our B&I sales for facilities are generally focused on large institutions and providing services to the food production industry and others. We are not doing facility services, white collar building cleaning. This is not a janitorial company. This is a fully integrated suite of facility services that we bring to large customers. We've had very good results across the board in all the verticals that we serve. It's a business we're very committed to and will continue to invest in it. Thank you. Our next question comes from Andrew Wittmann with Baird. Your line is open. Yeah. Excuse me. Thanks for taking my questions. I wanted to continue to go on more Nexus questions, I guess. But I guess, I mean, just for a clarify, did I hear you say that you believe that this contract could be the largest in the company? Are you saying that to this customer specifically or for this idea of these types of services to data centers? Just related to that, I'm curious as to, now that you've got this contract, why you didn't put it in guidance yet. Is it start timing? Is it something else? Those things would, I think, be helpful for us to understand. Thank you. Yeah. Yeah. Good questions, Andy. Thank you. Each of these data center locations represents potential value in the hundreds of millions of dollars over the life of the contract. This first contract with this particular hyperscaler is initially for multiple locations and will scale up to being several hundred million dollars on an annualized basis. Yes, this particular contract will be the largest in the company's portfolio when it's fully ramped. The reason for really not including it yet is we're still understanding the ramp-up period in terms of when employment starts in the location, when the housing begins. There's two different time frames, two different locations, and a couple of different entry points and start points. You know, we're making significant progress. The work is already beginning. The team's already engaged, but we're still working through the scale up, if you will, in terms of how rapidly we can begin to recognize revenues coming from the employment and the delivery of services to those customers. That's really all there is. It's just a question of how fast does it scale up and when do we have definitive information that we can provide. That's really helpful. I'm gonna keep going on this one a little bit more. Just for all of our benefits, what is the duration of a typical site on one of these things? Maybe for context here, once the center is built, do you anticipate maintaining some level of what I'd call base revenue, recognizing that I have to imagine that revenue is going to be down significantly if you're not having to transport a lot of people and house them and, you know, just be kind of normal day-to-day. I was wondering, is there an opportunity there? Is that part of this? Is that material at all? Any of those kind of thoughts would be helpful as well, I think. Yeah, you bet. Obviously, during the construction phase, that's when the real revenue production will take place. These are multiple year developments, if you will. The time frame for building these is variable depending on the size and the complexity of the operation. It's multiple years. It could be three to five, dependent upon the size and scale and the timing of construction. They do have a shelf life, if you will. Our anticipation is that as we expand our share of this market and our capabilities in this market and our relationship with these customers, is that we'll be moving from one location to the next as they begin to move on to their next opportunity and their next construction site. We see it as kind of a rolling process here, moving forward, starting with these first two and moving on to other opportunities as that process continues. There will be opportunities to serve the location for normal services, whether it be Refreshment Services or Workplace Experience Group or, you know, food service of the like, on a continuing basis for a smaller number of employees. The real revenue and profit opportunity is in the construction phase on these particular sites. You know, we'll ramp these and then we'll rotate on to new opportunities. As I said, there are several hundred of these projects on the boards, as you know, across the U.S. I think some count as high as 700 projects. It remains to be seen how many actually get built. In the meantime, there is a lot of opportunity for us to pursue and significant profitability for us to earn. Thank you very much. Our next question comes from Faiza Alwy with Deutsche Bank. Yes. Hi. Thank you. Following up around the same line of questioning, are you anticipating sort of just, you know, you talked about the ramp up in revenues and costs. I'm curious, you know, given that you talked about an asset light model, like, are you expecting costs to come before the revenues roll in? You know, if you could talk about the timing of that, or is it gonna be more of a, you know, one-to-one situation where you incur the costs when you start getting the revenues? Yeah, I would say, I'll let Jim talk a little bit about the accounting of it. Generally these contracts will be cost reimbursable. You know, so it's the costs that we incur to start up, you know, while there won't be any customers initially, and we'll be ramping to serve those people either lodging and/or working on site, that will incur no operating costs in the early stages. Jim, do you wanna talk about the accounting of this? I mean, I'll keep it, you know, pretty high level again for competitive reasons. Our model does not entail investing significant capital for housing or lodging as part of our balance sheet per se. With that, it's not a situation where there's significant costs in advance of the revenues ramping up. Again, the way we've structured this is more aligned with, you know, our costs will be ramp up in line with the revenues and services that we are providing. It's a situation where there is not significant startup cost. It reaches the targeted margins very quickly. As John mentioned, you know, those margins are above average for the company. It's a light capital, so low capital investment. Generally, the working capital is favorable as well. Okay, wonderful. That's very helpful. I guess I'm curious, like there are some companies out there that seem to be in a similar line of business, but are taking on sort of more CapEx and, you know, so a more asset-heavy approach. I'm curious competitively, you know, what are you hearing from your customers? Is there a reason for them to prefer companies, you know, that are willing to take on that CapEx investment or, you know, are they neutral? Just give us some context around that piece. I would say, you know, first of all, I think that's a philosophical decision for the potential client to make. We would not necessarily be opposed to investing if the client desired it and we could earn appropriate returns attached to that investment. It's not the way we've engaged to date, and it's not anticipated that it would be a significant requirement going forward. That, you know, these projects are so significant and require so much capital that this, and there's such a degree of uncertainty in terms of the ramp-up schedules, construction schedules, permitting, all those things that go into the development process, that the capital investment is not a significant consideration for those clients. Their costs of capital are lower, and frankly, the investment that they're making is very significant. The housing is a, pardon the expression, but a drop in the bucket compared to the actual total cost of building a hyperscale data center. You know, I think, we're positioned well and we believe that this is a significant opportunity that we can scale, that we've got these unique advantages and capabilities that we can bring to bear. We can offer a very, call it a one-stop-shop solution, reduce a lot of complexity in the process so that they're not having to deal with multiple subcontractors and the like, and I think they find that option attractive. We're gonna build it and we're very excited about it. Great. Thank you so much. Our next question comes from Curtis Nagle with Bank of America. Your line is open. Hi, good morning. This is Ryan Rivera on for Curtis Nagle. Can you touch on the sports event calendar for the remainder of FY 2026? Any upcoming events that can meaningfully impact revenue or profit? Would you say that growth is more dependent on adding new stadiums and teams? Finally, is the World Cup still expected to be a neutral event for the company? Thank you. Sure. Yeah, John, I can kick it off. As I mentioned, the second quarter did benefit from MLB schedule starting early. We also had strong per caps and good performance with the opening of that baseball season. We did have the World Baseball Classic in Q2 as well, I think that maybe contributed about 1% to the second quarter growth. In terms of the outlook, in terms of FIFA, as we've mentioned, we see that relatively neutral versus the prior year, as there'll be less concert events as we roll out those games. I think there's 17 games scheduled as part of FIFA operating across four Aramark stadiums. If I can squeeze in another one. Can you touch on the enhanced tech capabilities that are driving productivity? What are these key initiatives behind this? How are they tracking versus expectations? What inning would you say that you're in on these productivity benefits? Thanks. We've targeted our tech and our AI really at the most impactful areas for the organization and the performance, right? Targeting food and labor in particular and price. With respect to food, we've talked in the past about, you know, Culinary Co-Pilot, a tool that optimizes our menu planning, factoring in contractual requirements, consumer preferences, and the most optimal cost structure. Really, I'd say going forward, we're implementing a tool called LaborIQ, which is an insights based dashboard and facilitates our General Managers and frontline to essentially plan and optimize labor better. As an example, it allows us to fill roles, labor scheduling across Aramark employees and reduces reliance on agency labor, as this tool makes it easier to find Aramark employees to fill shifts. It helps our GMs to staff labor based on peak and non-peak time. It's a tool that's rolling out very rapidly across the U.S. At this point, we're seeing favorable trends in labor and favorable trends in labor productivity as we continue to roll this tool out. Thank you. Our next question comes from Jasper Bibb with Truist Securities. Your line is open. Hey, good morning, everyone. Maybe I'll follow up on Nexus too. I think you said the $100 million plus earlier was multiple projects. I just wanted to ask if we could break it down to a typical kind of data center construction project and how much revenue you can expect per location. I think some of these larger ones, there might be like a 1,000+ people on site building these things. It sounds like a lot of opportunity there. Just any more detail on the scope of kind of a normal site and the drivers of revenue opportunity there from all the services you're providing would be helpful. Thank you. Sure. You bet. Well, the size and scale can vary rather dramatically. Some locations with thousands of employees, up to 9 or 10,000. Yeah, they can be They can vary significantly site to site. There's no average data center site. Each of these contracts will look very different, based on the size, scale, location, and the degree of complexity. Is it a remote site? Is it an urban site? Those are, you know, what kind of workforce needs to be brought to bear? Very difficult to give you an average. You know, I would say the best data that we can give you is related to the sites that we have currently under agreement. As I said, we see the revenues for those to be well over $100 million each annually, and over the life of the contract, several hundred million dollars in terms of size and scale. Again, I apologize for not being able to be more definitive. As I said, we're under an NDA. We have two issues here. First of all, we have a customer who we are absolutely committed to doing the right thing with respect to their confidentiality. We also have a competitive environment where we want to maintain the ability to go ahead and to have first mover advantage, to have competitive advantage. We're being very careful not to disclose a number of things from a competitive perspective. As the business ramps and the results become clear in our results, it'll be much more transparent for our investors and clients to see. This first opportunity, many hundreds of millions of dollars of opportunity over the course of this particular contract. Well, awesome. That's helpful. I wanted to pivot to higher education. I think in the past month or so, you picked up a new contract at Texas State, also impacted by some restructuring at the University of Kentucky. I guess, how did you do from a net new perspective so far in the selling season? I think you're not all the way through that. Are there potentially some more opportunities that could come through for fall 2026 on the new business front? Yeah, I would say we're positioned again for another record net new performance in the aggregate for the company and in their respective businesses, very positive results. As you said, Texas State was also an award that we had. And University of Kentucky is a disappointment, and, but I will say this, that we saw the opportunity to rebid Kentucky as an opportunity for us to improve the overall financial returns for that contract, which frankly, has been the worst performing contract we've had since it was sold. You know, we saw the opportunity to potentially grow the relationship by taking on either healthcare facilities and keeping the current agreement for higher education. Failing that, we saw the opportunity to improve returns of the company and to redeploy the capital to higher return opportunities, that's precisely what happened. You know, we never like to lose, this is one where I feel like ultimately the financial returns for the company are better as a result of not moving forward in that relationship, having to commit significantly greater sums of capital and operating it on very thin margins. On a total basis, net new, again, we've had extraordinary results year to date and expect to achieve another record net new performance this year. Very helpful. Thank you for taking the questions. Our next question comes from Joshua Chan with UBS. Your line is open. Hi, good morning, John, Jim. Thanks for taking the questions. Maybe a broader question on kind of customer inquiry levels on some of these new businesses that you have won, you know, in terms of Aramark Nexus, but also in healthcare. Are you seeing similar types of customers, you know, inquiring about, you know, your services in these types of offerings since you have announced them? How have those been trending? Yeah, we see momentum. Yes. Short answer is yes. We see obviously momentum in the healthcare space, particularly with the successful opening and scaling up of Penn, as and well as the anticipated opening of RWJBarnabas. We do have significant momentum in the healthcare space, and we're very pleased with that. Yes, the announcement of Nexus and its and the award of the initial contract has opened the door to a number of other opportunities that we're currently engaged in and evaluating, none of which I'm prepared to disclose right now. Sure. Sure. That, that sounds great. I think around now is when you start to have pricing discussions with your customers that reset annually. Could you just talk about posture and what might be a reasonable outcome in terms of those pricing discussions? Yeah. Sure. Yeah. I'll start with, you know, inflation. You know, we're seeing total inflation come in in line with our expectations at about 3.5% or so. As we've talked about, if we don't price for profit, we essentially, you know, price to mitigate inflation. The discussions we're having are in that range of, you know, 3.5%-4% on the contractual base portion of the business. As you know, about two-thirds of the business, as we refer to, as dynamic pricing, that is sort of more rapidly adjusted to the inflation expectations. Inflation is coming in line with the expectations. We have tools at our disposal to counter inflation should it escalate in the second half of the year. Great. Thank you both for the color, and congrats on a good quarter. Thank you. Thank you. Our next question comes from Karl Green with RBC Capital Markets. Your line is open. Thanks very much. Good morning to you both. Just a couple of questions on U.S. organic growth. Firstly, just in sports and entertainment, the higher per cap spending. I just wondered if you could indicate if you're seeing any limits to how high you can push that in terms of price elasticity, or is it still kind of powering along at levels you've seen over the last 12 to 18 months? Then on B&I, within that segment in the U.S., clearly new business and very, you describe it as exceptionally high client retention rates are doing the heaviest of lifting there for double-digit growth. Could you just talk a little bit more about how like-for-like volumes are trending there, just in terms of higher participation rates, your expanded formats, et cetera, just to give us a sense of seeing how robust that like-for-like volume position is, please? Thank you. I'll take it off on sports and entertainment, you know, a good quarter in sports. Sports leisure and corrections growing at about 7% underlying, a really great start to the MLB season. I'd say base business growth and volumes, more or less in line with what I mentioned earlier. The 3%-4% for the company is what we're seeing in sports. We obviously have to be sensitive to pricing there and making sure we're providing, you know, experience and economics that are good with the team and appropriate and so forth. Within B&I, again, we've grew over a 20% year to date. Really strong outlook. The new business at the end of the day, I think is the main driver there, along with the exceptional retention levels. We had a nice performance with premium catering in the quarter benefiting from the partnership we did with Daniel Boulud. Refreshment services and micro markets also falls into the B&I segment as well, and that business is growing at a similar level. We've seen nice geographic e-expansion in the West Coast and in the New York area in particular, and continue to enhance and increase the route density of that business as well. Some of the drivers with a strong performance there. Okay, thank you. Our next question comes from Neil Tyler with Rothschild & Co and Redburn. Your line is open. Yeah, thanks. Good morning. Just one left for me, really. I wanted to go back to the topic of inflation and ask you about sort of learnings that you take from perhaps 2022, 2023 in terms of identifying areas in, in the customer suite of friction that might create opportunities and whether there's, you know, you know, how you expect those to materialize, manifest over the, over the next year or two. We have a number of levers at our disposal. As I mentioned, we generally try to have pricing in line with inflation. On that contractual-based portion of the business, where the pricing is locked in a little bit longer. We have a number of operating levers. We can substitute our menu. The tool I just mentioned a little bit earlier with LaborIQ allows us to flex and optimize our staffing levels. Those are some of the other tools we have at our disposal to counter inflation. It's a very flexible business model. I think the organization is well equipped based on, you know, the experience we had a few years ago. It's a topic of all of our operating reviews. Our supply chain team does a nice job, first of all, mitigating inflation. We tend to have longer term contracts given our scale. As part of all the business reviews that we have, we're always talking about the inflation outlook and what are we doing to mitigate that impact. Yeah, I'll just. Sorry, John. Go on. I was just gonna say, yeah, in terms of where the, you know, new growth opportunities from first time outsourcing, you know, might be shaken out by a sort of a higher inflation environment. Yeah, I think that that's a very good point. I think it's not just the inflation environment, it's the total macro environment with respect to things. That's why you're seeing higher levels of outsourcing in healthcare because not only are they challenged with overall inflation in that backdrop, but they're also significantly under pressure from reduced reimbursements from the governments that they where we operate. There's an overall cost pressure that's occurring that's been really building for a number of years. More and more institutions have recognized that they are disadvantaged. That's one of the reasons you're seeing significant outsourcing from people like Penn and RWJBarnabas, you know, to systemize the outsourcing approach to take advantage of that ability to reduce cost in the long run, not only from a product cost perspective, but from an operations administration and efficiency perspective as well. Integrating all those services that, you know, helps to really manage the total employment level and the ability to deliver the right outcomes for patients. There is significant opportunity there, and we see that manifesting itself in particular in healthcare, but we see that in other segments as well. Okay. Yeah, great. Thanks. That makes total sense. Our next question comes from Ajay Nandal with Citi. Your line is open. Hi, good morning. This is Ajay on for Leo. One question for me, please. Compass Group at its earnings call alluded to adverse weather conditions impacting their business to some extent in the U.S. during the months of February and March. Did you see any such impact on your business? If yes, can you kind of quantify that? Thank you. We had a little trouble hearing. Could you just repeat that question, please? Yeah, sure. Just wanted to check that Compass Group at its call alluded to adverse weather conditions. Oh. Business development during the months of February and March. Yes. Got it. Okay. Did you see any such impact? Sure. We, you know, we did have an unusual amount of snow and ice, particularly in the Northeast, a little bit of the South on the quarter, which, you know, did have an impact on our higher ed and K-12 business. I'd say maybe $15 million-$20 million of revenue and a few million of AOI. You know, despite the weather concerns, we still, you know, achieved the targets that we had communicated. Should that reverse in this quarter? Yeah, that was in the second quarter. Oh. Understood. Thank you. That doesn't come back. That would be something we'll lap next year. Got it. Thank you. Our last question comes from Stephanie Moore with Jefferies. Your line is open. Great. Thank you so much. I wanted to touch a little bit on what you might be seeing from just a base standpoint and general customer health. Clearly, it's not embedded in your results at all, but I think there's some, you know, maybe, you know, questioning or skepticism out there about the overall health of the consumer, just given higher fuel prices and the like. Just curious and, you know, maybe the aspects of your business where you would be more sensitive to discretionary income by the consumer, if you've seen anything in the last couple of months that could suggest any kind of pulling back of activity. That'd be helpful. Thanks. Yeah. Happy to take that. As a matter of fact, we are still seeing strong consumer demand in those consumer sensitive businesses that we operate. When you think about us, think about sports and entertainment, that's clearly an area where there's some customer sensitivity or the potential for it. We're seeing very strong results both in per capita spending as well as in attendance. We're seeing strong reservation capacity in the national parks, you know, significant, you know, consumer. Those businesses are generally significantly impacted by a consumer behavior. Strong reservations and the outlook very good for those businesses as well. The short answer is we're not really seeing a consumer impacted yet in those businesses. We see the consumer as being very resilient at this point and not seeing it impact our business to date. You know, we do believe that this business has been historically very resilient in times of higher inflation, and generally, you know, we're serving people where they work, where they, where they are getting medical care, where they're studying. People are gonna continue to consume in those environments, and we're not seeing a significant impact as a result of a change in the consumer's attitudes at this stage. Understood. Thank you. Then just a follow-up. You touched a little bit about this, but clearly really strong new wins and performance. Could you kind of maybe speak to the competitive environment? You know, if you know, how you would frame some of your increased wins from your own obviously actions over the last several years, which have been, you know, very favorable, but at the same time, you know, maybe due to any kind of competitive changes as well where, you know, you're able to kinda capture some incremental share. Any way to frame that would be helpful. Thanks. Sure. You know, I would say we are continuing to enjoy significant success, and in all the markets where we operate, both domestically and internationally, and across all the different businesses. I think it's as a result of the investment that we've continued to make in the growth algorithm, if you will, and the growth initiatives inside the organization. The competitive environment has always been robust. We've always had the competitors that are very interested in growth as well, but we've always been able to maintain a solid growth rate. I think it's a result of our increased investment in growth, our performance throughout the services that we provide to our customers and the unique proposals that we develop for those prospective customers and the quality of the capabilities that we bring to bear. This has always been a competitive marketplace. I think we are well-positioned to compete in it. We're seeing enhanced throughput as a result of first-time outsourcing. It is a significant proportion of our new wins. We're also still maintaining the competitive dynamic against our large competitors as well as the regional competitors. We're being very successful, we're being very diligent, and we're being very focused on growth. Right now, we continue to win disproportionate numbers of these opportunities. We're hyper-focused on it, and we continue to enjoy success. Absolutely. Thank you, everybody. I'm not showing any further questions. I'll turn the call back over to Mr. Zillmer for any further remarks. Perfect. Thank you very much. Thank you all for your support of the company and participating this morning. We are extraordinarily excited about the results that we've delivered and about the prospects for the balance of fiscal 2026 and 2027. We're executing our growth strategies with focus and discipline. As I said earlier, our ambitions for Aramark have never been higher, and we are consistently setting new milestones. We expect to continue to do that, and we believe that we have all the capabilities and the best team in the industry, and we're gonna make that happen. Thank you very much. Thank you for participating. This does conclude today's presentation. You may now disconnect, and have a wonderful day.

Speaker 14: Good morning, and welcome to Aramark's second quarter fiscal 2026 earnings results conference call. My name is Kevin, and I'll be your operator for today's call. At this time, I'd like to inform you this conference is being recorded for rebroadcast and that all participants are on a listen-only mode. We will open the conference call for questions at the conclusion of the company's remarks. I will now turn the call over to Felise Kissell, Senior Vice President, Investor Relations and Corporate Development. Ms. Kissell, please proceed. Good morning, and welcome to Aramark's second quarter fiscal 2026 earnings results conference call. good morning and welcome to aramark's second quarter fiscal 2026 earnings results conference call My name is Kevin, and I'll be your operator for today's call. my name is kevin and i'll be your operator for today's call At this time, I'd like to inform you this conference is being recorded for rebroadcast and that all participants are on a listen-only mode. at this time i'd like to inform you this conference is being recorded for rebroadcast and that all participants are on a listen-only mode We will open the conference call for questions at the conclusion of the company's remarks. we will open the conference call for questions at the conclusion of the company's remarks I will now turn the call over to Felise Kissell, Senior Vice President, Investor Relations and Corporate Development. i will now turn the call over to felise kissell senior vice president investor relations and corporate development Ms. Kissell, please proceed. ms kissell please proceed

Speaker 5: Thank you, welcome to Aramark's earnings conference call and webcast. This morning, we'll be hearing from our CEO, John Zillmer, as well as our CFO, Jim Tarangelo. As always, there are accompanying slides for this call that can be viewed through the webcast and are also available on the IR website for easy access. Our notice regarding forward-looking statements is scheduled in our press release. During this call, we will be making comments that are forward looking. Actual results may differ materially from those expressed or implied as a result of various risks, uncertainties, and important factors, including those discussed in the Risk Factors, MD&A, and other sections of our annual report on Form 10-K and SEC filings. We will be discussing certain non-GAAP financial measures. A reconciliation of these items to U.S. GAAP can be found in our press release and IR website. Thank you, welcome to Aramark's earnings conference call and webcast. thank you welcome to aramark's earnings conference call and webcast This morning, we'll be hearing from our CEO, John Zillmer, as well as our CFO, Jim Tarangelo. this morning we'll be hearing from our ceo john zillmer as well as our cfo jim tarangelo As always, there are accompanying slides for this call that can be viewed through the webcast and are also available on the IR website for easy access. as always there are accompanying slides for this call that can be viewed through the webcast and are also available on the ir website for easy access Our notice regarding forward-looking statements is scheduled in our press release. our notice regarding forward-looking statements is scheduled in our press release During this call, we will be making comments that are forward looking. during this call we will be making comments that are forward looking Actual results may differ materially from those expressed or implied as a result of various risks, uncertainties, and important factors, including those discussed in the Risk Factors, MD&A, and other sections of our annual report on Form 10-K and SEC filings. actual results may differ materially from those expressed or implied as a result of various risks uncertainties and important factors including those discussed in the risk factors md&a and other sections of our annual report on form 10-k and sec filings We will be discussing certain non-GAAP financial measures. we will be discussing certain non-gaap financial measures A reconciliation of these items to U.S. a reconciliation of these items to u.s GAAP can be found in our press release and IR website. gaap can be found in our press release and ir website With that, I will now turn the call over to John. With that, I will now turn the call over to John. with that i will now turn the call over to john

Speaker 10: Good morning, everyone, and welcome to our fiscal 2nd quarter earnings call. Thank you for joining us. Our financial results underscore the continued momentum occurring at the company, driven by our unwavering focus on growth through delivering hospitality excellence. Jim and I will review the key contributors to the quarter's outperformance and our confidence in achieving the outlook for fiscal 2026. We enter the second half of the year with exceptionally strong business trends, including, first, a client retention rate exceeding 98% across the company. Second, organic revenue growth at record levels in both FSS U.S. and international. Third, new client wins that have already reached an unprecedented total of $1 billion this fiscal year to date. Lastly, we're very excited about our entry into the hyperscale AI data center market, where we believe Aramark is uniquely positioned to deliver an integrated suite of capabilities. Good morning, everyone, and welcome to our fiscal 2nd quarter earnings call. good morning everyone and welcome to our fiscal 2nd quarter earnings call Thank you for joining us. thank you for joining us Our financial results underscore the continued momentum occurring at the company, driven by our unwavering focus on growth through delivering hospitality excellence. our financial results underscore the continued momentum occurring at the company driven by our unwavering focus on growth through delivering hospitality excellence Jim and I will review the key contributors to the quarter's outperformance and our confidence in achieving the outlook for fiscal 2026. jim and i will review the key contributors to the quarter's outperformance and our confidence in achieving the outlook for fiscal 2026 We enter the second half of the year with exceptionally strong business trends, including, first, a client retention rate exceeding 98% across the company. we enter the second half of the year with exceptionally strong business trends including first a client retention rate exceeding 98% across the company Second, organic revenue growth at record levels in both FSS U.S. and international. second organic revenue growth at record levels in both fss u.s and international Third, new client wins that have already reached an unprecedented total of $1 billion this fiscal year to date. third new client wins that have already reached an unprecedented total of $1 billion this fiscal year to date Lastly, we're very excited about our entry into the hyperscale AI data center market, where we believe Aramark is uniquely positioned to deliver an integrated suite of capabilities. lastly we're very excited about our entry into the hyperscale ai data center market where we believe aramark is uniquely positioned to deliver an integrated suite of capabilities As we execute on our newly awarded multi-year engagement with a top global hyperscaler to provide comprehensive hospitality and facility services across multiple AI data center locations, this client is expected to become the largest in our portfolio. We see significant runway for additional growth with this client and other hyperscalers. In the second quarter, Aramark's organic revenue grew 12% to $4.8 billion, including an estimated 3% benefit from the calendar shift. As a reminder, the calendar shift will ultimately have no bearing on the full year results. Our strong revenue performance was due to broad-based net new business and base business growth across sectors and geographies. Throughout the organization, our client-led growth strategies consistently offer a differentiated guest experience while providing operational rigor, unparalleled supply chain capabilities, and advanced technology solutions. Moving to the business segments. As we execute on our newly awarded multi-year engagement with a top global hyperscaler to provide comprehensive hospitality and facility services across multiple AI data center locations, this client is expected to become the largest in our portfolio. as we execute on our newly awarded multi-year engagement with a top global hyperscaler to provide comprehensive hospitality and facility services across multiple ai data center locations this client is expected to become the largest in our portfolio We see significant runway for additional growth with this client and other hyperscalers. we see significant runway for additional growth with this client and other hyperscalers In the second quarter, Aramark's organic revenue grew 12% to $4.8 billion, including an estimated 3% benefit from the calendar shift. in the second quarter aramark's organic revenue grew 12% to $4.8 billion including an estimated 3% benefit from the calendar shift As a reminder, the calendar shift will ultimately have no bearing on the full year results. as a reminder the calendar shift will ultimately have no bearing on the full year results Our strong revenue performance was due to broad-based net new business and base business growth across sectors and geographies. our strong revenue performance was due to broad-based net new business and base business growth across sectors and geographies Throughout the organization, our client-led growth strategies consistently offer a differentiated guest experience while providing operational rigor, unparalleled supply chain capabilities, and advanced technology solutions. throughout the organization our client-led growth strategies consistently offer a differentiated guest experience while providing operational rigor unparalleled supply chain capabilities and advanced technology solutions Moving to the business segments. moving to the business segments FSS U.S. organic revenue increased 12% to $3.4 billion. Would have increased approximately 8% without the calendar shift benefit, which occurred primarily in education, with collegiate hospitality also experiencing growth in residential meal plans associated with higher student enrollment. Revenue growth in the second quarter for the U.S. was additionally driven by sports and entertainment, which had a strong opening day for Major League Baseball, with increased fan attendance and record per capita spending. Sports and Entertainment also participated in several marquee events, including the World Baseball Classic and the NCAA basketball tournament. Workplace Experience sustained double-digit growth as a result of significant new business contributions, exceptionally high retention rates, and elevated catering demand. FSS U.S. organic revenue increased 12% to $3.4 billion. fss u.s organic revenue increased 12% to $3.4 billion Would have increased approximately 8% without the calendar shift benefit, which occurred primarily in education, with collegiate hospitality also experiencing growth in residential meal plans associated with higher student enrollment. would have increased approximately 8% without the calendar shift benefit which occurred primarily in education with collegiate hospitality also experiencing growth in residential meal plans associated with higher student enrollment Revenue growth in the second quarter for the U.S. was additionally driven by sports and entertainment, which had a strong opening day for Major League Baseball, with increased fan attendance and record per capita spending. revenue growth in the second quarter for the u.s was additionally driven by sports and entertainment which had a strong opening day for major league baseball with increased fan attendance and record per capita spending Sports and Entertainment also participated in several marquee events, including the World Baseball Classic and the NCAA basketball tournament. sports and entertainment also participated in several marquee events including the world baseball classic and the ncaa basketball tournament Workplace Experience sustained double-digit growth as a result of significant new business contributions, exceptionally high retention rates, and elevated catering demand. workplace experience sustained double-digit growth as a result of significant new business contributions exceptionally high retention rates and elevated catering demand Refreshments expanded its client base, building incremental route density across several key geographic areas, including Central New York, the Southeast, the Pacific Northwest, while increasing the average size of new wins by 15%. Healthcare completed the successful launch of Penn Medicine, which is now fully operational. As reviewed on the last earnings call, the team is set to mobilize RWJBarnabas Health this summer. During the quarter, FSS U.S. achieved several notable client wins, including Suffolk University and the University of Wisconsin–Oshkosh in Collegiate Hospitality, which will fully launch in the new academic year. Toyota in Workplace Experience, where we recently began operations at their North American headquarters. The Oklahoma Department of Corrections, an example of our expanding presence in state-run correctional facilities. Refreshments expanded its client base, building incremental route density across several key geographic areas, including Central New York, the Southeast, the Pacific Northwest, while increasing the average size of new wins by 15%. refreshments expanded its client base building incremental route density across several key geographic areas including central new york the southeast the pacific northwest while increasing the average size of new wins by 15% Healthcare completed the successful launch of Penn Medicine, which is now fully operational. healthcare completed the successful launch of penn medicine which is now fully operational As reviewed on the last earnings call, the team is set to mobilize RWJBarnabas Health this summer. as reviewed on the last earnings call the team is set to mobilize rwjbarnabas health this summer During the quarter, FSS U.S. achieved several notable client wins, including Suffolk University and the University of Wisconsin–Oshkosh in Collegiate Hospitality, which will fully launch in the new academic year. during the quarter fss u.s achieved several notable client wins including suffolk university and the university of wisconsin–oshkosh in collegiate hospitality which will fully launch in the new academic year Toyota in Workplace Experience, where we recently began operations at their North American headquarters. toyota in workplace experience where we recently began operations at their north american headquarters The Oklahoma Department of Corrections, an example of our expanding presence in state-run correctional facilities. the oklahoma department of corrections an example of our expanding presence in state-run correctional facilities Stone Mountain in Destinations, the most visited attraction in Georgia, where we start offering food and beverage, lodging, retail, tours, and camping next month ahead of the peak summer tourist season. As hyperscale AI data center development accelerates and demand for support services grows in tandem, we launched Aramark Nexus, a new platform delivering integrated hospitality and workforce support services in large scale, complex, and often remote operating environments where we believe we have proven expertise. We've been selected by a top global hyperscaler to support thousands of workers in providing employee housing, dining and hospitality hubs with modern lifestyle amenities and entertainment, transportation to and from construction sites, and full housekeeping and guest services delivered through a unified management structure. Our engagement is underway and set to begin this fiscal year. Stone Mountain in Destinations, the most visited attraction in Georgia, where we start offering food and beverage, lodging, retail, tours, and camping next month ahead of the peak summer tourist season. stone mountain in destinations the most visited attraction in georgia where we start offering food and beverage lodging retail tours and camping next month ahead of the peak summer tourist season As hyperscale AI data center development accelerates and demand for support services grows in tandem, we launched Aramark Nexus, a new platform delivering integrated hospitality and workforce support services in large scale, complex, and often remote operating environments where we believe we have proven expertise. as hyperscale ai data center development accelerates and demand for support services grows in tandem we launched aramark nexus a new platform delivering integrated hospitality and workforce support services in large scale complex and often remote operating environments where we believe we have proven expertise We've been selected by a top global hyperscaler to support thousands of workers in providing employee housing, dining and hospitality hubs with modern lifestyle amenities and entertainment, transportation to and from construction sites, and full housekeeping and guest services delivered through a unified management structure. we've been selected by a top global hyperscaler to support thousands of workers in providing employee housing dining and hospitality hubs with modern lifestyle amenities and entertainment transportation to and from construction sites and full housekeeping and guest services delivered through a unified management structure Our engagement is underway and set to begin this fiscal year. our engagement is underway and set to begin this fiscal year We expect this new suite of services to generate margins above the company average and achieve attractive investment returns. The significant growth opportunity currently is not reflected in our fiscal 26 financial outlook. We will provide updates as we launch, grow, and scale the business. As I mentioned earlier, we see substantial growth potential in hyperscale data and operation centers. The international segment achieved another quarter of consistent compounded growth, with organic revenue increasing 13% to $1.4 billion, inclusive of an estimated 1% benefit from the calendar shift. This exceptional revenue performance was broad-based across every region, attributed to double-digit growth in Europe and Canada and high single-digit growth in emerging markets. Business momentum was led by sports and entertainment, education, extractive services, and business and industry, highlighting the depth of our in-country expertise and strong cross-border collaboration. We expect this new suite of services to generate margins above the company average and achieve attractive investment returns. we expect this new suite of services to generate margins above the company average and achieve attractive investment returns The significant growth opportunity currently is not reflected in our fiscal 26 financial outlook. the significant growth opportunity currently is not reflected in our fiscal 26 financial outlook We will provide updates as we launch, grow, and scale the business. we will provide updates as we launch grow and scale the business As I mentioned earlier, we see substantial growth potential in hyperscale data and operation centers. as i mentioned earlier we see substantial growth potential in hyperscale data and operation centers The international segment achieved another quarter of consistent compounded growth, with organic revenue increasing 13% to $1.4 billion, inclusive of an estimated 1% benefit from the calendar shift. the international segment achieved another quarter of consistent compounded growth with organic revenue increasing 13% to $1.4 billion inclusive of an estimated 1% benefit from the calendar shift This exceptional revenue performance was broad-based across every region, attributed to double-digit growth in Europe and Canada and high single-digit growth in emerging markets. this exceptional revenue performance was broad-based across every region attributed to double-digit growth in europe and canada and high single-digit growth in emerging markets Business momentum was led by sports and entertainment, education, extractive services, and business and industry, highlighting the depth of our in-country expertise and strong cross-border collaboration. business momentum was led by sports and entertainment education extractive services and business and industry highlighting the depth of our in-country expertise and strong cross-border collaboration All countries within our international portfolio are driving favorable net new business underpinned by an extensive sales pipeline. Second quarter new client awards ranged from an increased presence in festivals such as Brockwell Live in the U.K., serving hundreds of thousands of visitors, to the new T-Mobile Arena in the Czech Republic, scheduled to host its first event later this fall, and XinHua Hospital in China, a leading institution in clinical care and medical education. Now to global supply chain. We continue to see rapid GPO expansion in multiple categories, including sizable growth in golf and spa destinations within the U.S. and internationally across the hospitality industry. Inflation continues to track in line with our expectations throughout all regions. Aramark remains resilient amid geopolitical uncertainty, including the recent volatility occurring in the energy markets. All countries within our international portfolio are driving favorable net new business underpinned by an extensive sales pipeline. all countries within our international portfolio are driving favorable net new business underpinned by an extensive sales pipeline Second quarter new client awards ranged from an increased presence in festivals such as Brockwell Live in the U.K., serving hundreds of thousands of visitors, to the new T-Mobile Arena in the Czech Republic, scheduled to host its first event later this fall, and XinHua Hospital in China, a leading institution in clinical care and medical education. second quarter new client awards ranged from an increased presence in festivals such as brockwell live in the u.k serving hundreds of thousands of visitors to the new t-mobile arena in the czech republic scheduled to host its first event later this fall and xinhua hospital in china a leading institution in clinical care and medical education Now to global supply chain. now to global supply chain We continue to see rapid GPO expansion in multiple categories, including sizable growth in golf and spa destinations within the U.S. and internationally across the hospitality industry. we continue to see rapid gpo expansion in multiple categories including sizable growth in golf and spa destinations within the u.s and internationally across the hospitality industry Inflation continues to track in line with our expectations throughout all regions. inflation continues to track in line with our expectations throughout all regions Aramark remains resilient amid geopolitical uncertainty, including the recent volatility occurring in the energy markets. aramark remains resilient amid geopolitical uncertainty including the recent volatility occurring in the energy markets The significant scale of our food service agreements provides efficient cost flexibility and enables us to remain proactive in managing strategic pricing and sourcing actions. Bottom line, we believe the organization is well equipped to navigate a broader macro backdrop. Before handing the call over to Jim, I want to reinforce the message we've been sharing with our teams across the country. We are executing our growth strategies with focus and discipline. Our ambitions for Aramark have never been higher, and we are consistently setting new milestones. We're proud of the performance the teams have delivered, and we remain fully committed to working together to build on this continued momentum and drive the business to even greater levels of success. Jim, I'll now turn the call over to you. The significant scale of our food service agreements provides efficient cost flexibility and enables us to remain proactive in managing strategic pricing and sourcing actions. the significant scale of our food service agreements provides efficient cost flexibility and enables us to remain proactive in managing strategic pricing and sourcing actions Bottom line, we believe the organization is well equipped to navigate a broader macro backdrop. bottom line we believe the organization is well equipped to navigate a broader macro backdrop Before handing the call over to Jim, I want to reinforce the message we've been sharing with our teams across the country. before handing the call over to jim i want to reinforce the message we've been sharing with our teams across the country We are executing our growth strategies with focus and discipline. we are executing our growth strategies with focus and discipline Our ambitions for Aramark have never been higher, and we are consistently setting new milestones. our ambitions for aramark have never been higher and we are consistently setting new milestones We're proud of the performance the teams have delivered, and we remain fully committed to working together to build on this continued momentum and drive the business to even greater levels of success. we're proud of the performance the teams have delivered and we remain fully committed to working together to build on this continued momentum and drive the business to even greater levels of success Jim, I'll now turn the call over to you. jim i'll now turn the call over to you

Speaker 9: Thanks, John, and good morning, everyone. We've made great progress across our key operating metrics during the first half of fiscal 2026, delivering strong financial performance. Our results in the second quarter reflected continued momentum in driving both top and bottom line results from strategies that have not only advanced the current state of the business, but we believe have also positioned us for sustained success. As we move into the second half of fiscal 2026, we remain focused on disciplined execution of our growth efforts across the organization with a mindset of creating significant shareholder value. As John reviewed, we reported organic revenue growth in the second quarter of more than 12% versus the prior year period, led by broad-based net new business, higher like-for-like volumes, and the favorable impact of the calendar shift, which was approximately 3%. Thanks, John, and good morning, everyone. thanks john and good morning everyone We've made great progress across our key operating metrics during the first half of fiscal 2026, delivering strong financial performance. we've made great progress across our key operating metrics during the first half of fiscal 2026 delivering strong financial performance Our results in the second quarter reflected continued momentum in driving both top and bottom line results from strategies that have not only advanced the current state of the business, but we believe have also positioned us for sustained success. our results in the second quarter reflected continued momentum in driving both top and bottom line results from strategies that have not only advanced the current state of the business but we believe have also positioned us for sustained success As we move into the second half of fiscal 2026, we remain focused on disciplined execution of our growth efforts across the organization with a mindset of creating significant shareholder value. as we move into the second half of fiscal 2026 we remain focused on disciplined execution of our growth efforts across the organization with a mindset of creating significant shareholder value As John reviewed, we reported organic revenue growth in the second quarter of more than 12% versus the prior year period, led by broad-based net new business, higher like-for-like volumes, and the favorable impact of the calendar shift, which was approximately 3%. as john reviewed we reported organic revenue growth in the second quarter of more than 12% versus the prior year period led by broad-based net new business higher like-for-like volumes and the favorable impact of the calendar shift which was approximately 3% For the first half of fiscal 2026, organic revenue growth was 8.5%, with the calendar shift having no effect on the first half growth results. Regarding second quarter profit growth, operating income was $220 million, up 26% versus the prior year. Adjusted operating income was $258 million, up 24% on a constant currency basis, and AOI margins increased 50 basis points. The strong profit growth was a result of higher revenue, productivity gains in food and labor supported by our technology capabilities, supply chain efficiencies, and disciplined above-unit cost management. The calendar shift also benefited AOI in the quarter by an estimated $25 million or 12%. Turning to the business segments, the U.S. reported AOI growth of 27% compared to the same period last year. For the first half of fiscal 2026, organic revenue growth was 8.5%, with the calendar shift having no effect on the first half growth results. for the first half of fiscal 2026 organic revenue growth was 8.5% with the calendar shift having no effect on the first half growth results Regarding second quarter profit growth, operating income was $220 million, up 26% versus the prior year. regarding second quarter profit growth operating income was $220 million up 26% versus the prior year Adjusted operating income was $258 million, up 24% on a constant currency basis, and AOI margins increased 50 basis points. adjusted operating income was $258 million up 24% on a constant currency basis and aoi margins increased 50 basis points The strong profit growth was a result of higher revenue, productivity gains in food and labor supported by our technology capabilities, supply chain efficiencies, and disciplined above-unit cost management. the strong profit growth was a result of higher revenue productivity gains in food and labor supported by our technology capabilities supply chain efficiencies and disciplined above-unit cost management The calendar shift also benefited AOI in the quarter by an estimated $25 million or 12%. the calendar shift also benefited aoi in the quarter by an estimated $25 million or 12% Turning to the business segments, the U.S. reported AOI growth of 27% compared to the same period last year. turning to the business segments the u.s reported aoi growth of 27% compared to the same period last year Growth was driven by increased revenue levels, technology-enabled productivity gains in food and labor, supply chain efficiencies, and disciplined above-unit cost management. The calendar shift also benefited AOI growth by approximately 13%. Once again, the international segment had double-digit AOI growth in the quarter, increasing 12% on a constant currency basis. This performance reflected higher base business volume, new business maturity, and strengthened supply chain economics, which more than offset some in-country investments during the quarter to support significant growth. Turning to the remainder of the income statement, interest expense was $82 million in the quarter, and the adjusted tax rate was 25.3%. Our quarterly performance resulted in GAAP EPS of $0.38 and adjusted EPS of $0.49, an increase of 40% compared to the prior year period on a constant currency basis. Growth was driven by increased revenue levels, technology-enabled productivity gains in food and labor, supply chain efficiencies, and disciplined above-unit cost management. growth was driven by increased revenue levels technology-enabled productivity gains in food and labor supply chain efficiencies and disciplined above-unit cost management The calendar shift also benefited AOI growth by approximately 13%. the calendar shift also benefited aoi growth by approximately 13% Once again, the international segment had double-digit AOI growth in the quarter, increasing 12% on a constant currency basis. once again the international segment had double-digit aoi growth in the quarter increasing 12% on a constant currency basis This performance reflected higher base business volume, new business maturity, and strengthened supply chain economics, which more than offset some in-country investments during the quarter to support significant growth. this performance reflected higher base business volume new business maturity and strengthened supply chain economics which more than offset some in-country investments during the quarter to support significant growth Turning to the remainder of the income statement, interest expense was $82 million in the quarter, and the adjusted tax rate was 25.3%. turning to the remainder of the income statement interest expense was $82 million in the quarter and the adjusted tax rate was 25.3% Our quarterly performance resulted in GAAP EPS of $0.38 and adjusted EPS of $0.49, an increase of 40% compared to the prior year period on a constant currency basis. our quarterly performance resulted in gaap eps of $0.38 and adjusted eps of $0.49 an increase of 40% compared to the prior year period on a constant currency basis The calendar shift benefited adjusted EPS growth in the quarter by approximately 20%. With respect to cash flow, we generated a significant cash inflow in the quarter from the contribution of higher earnings and favorable working capital. Net cash provided by operating activities in the second quarter was $400 million, an increase of $144 million or 56% compared to the prior year period. Free cash flow was $305 million, which improved by $164 million or 116% year-over-year. The strong free cash flow in the quarter enabled us to proactively repay $55 million of term loans. We also continued to repurchase shares under our current share repurchase program. To date, we have repurchased approximately $194 million of Aramark stock. The calendar shift benefited adjusted EPS growth in the quarter by approximately 20%. the calendar shift benefited adjusted eps growth in the quarter by approximately 20% With respect to cash flow, we generated a significant cash inflow in the quarter from the contribution of higher earnings and favorable working capital. with respect to cash flow we generated a significant cash inflow in the quarter from the contribution of higher earnings and favorable working capital Net cash provided by operating activities in the second quarter was $400 million, an increase of $144 million or 56% compared to the prior year period. net cash provided by operating activities in the second quarter was $400 million an increase of $144 million or 56% compared to the prior year period Free cash flow was $305 million, which improved by $164 million or 116% year-over-year. free cash flow was $305 million which improved by $164 million or 116% year-over-year The strong free cash flow in the quarter enabled us to proactively repay $55 million of term loans. the strong free cash flow in the quarter enabled us to proactively repay $55 million of term loans We also continued to repurchase shares under our current share repurchase program. we also continued to repurchase shares under our current share repurchase program To date, we have repurchased approximately $194 million of Aramark stock. to date we have repurchased approximately $194 million of aramark stock We remain disciplined in our capital allocation priorities as we are committed to reaching a leverage ratio below 3x by the end of the fiscal year. At quarter end, the company had more than $1.4 billion in cash availability. Finally, let me wrap up with our performance expectations for the remainder of fiscal 2026. We are extremely pleased with our year-to-date financial results and the positive trends occurring in the business, including a strong revenue trajectory from the net new business and continued base business expansion. As a result, we have updated our fiscal 2026 outlook for organic revenue growth to the high end of our 7%-9% range, and we are reaffirming our expectations for AOI growth to be up 12%-17% and adjusted EPS growth between 20% and 25%. We remain disciplined in our capital allocation priorities as we are committed to reaching a leverage ratio below 3x by the end of the fiscal year. we remain disciplined in our capital allocation priorities as we are committed to reaching a leverage ratio below 3x by the end of the fiscal year At quarter end, the company had more than $1.4 billion in cash availability. at quarter end the company had more than $1.4 billion in cash availability Finally, let me wrap up with our performance expectations for the remainder of fiscal 2026. finally let me wrap up with our performance expectations for the remainder of fiscal 2026 We are extremely pleased with our year-to-date financial results and the positive trends occurring in the business, including a strong revenue trajectory from the net new business and continued base business expansion. we are extremely pleased with our year-to-date financial results and the positive trends occurring in the business including a strong revenue trajectory from the net new business and continued base business expansion As a result, we have updated our fiscal 2026 outlook for organic revenue growth to the high end of our 7%-9% range, and we are reaffirming our expectations for AOI growth to be up 12%-17% and adjusted EPS growth between 20% and 25%. as a result we have updated our fiscal 2026 outlook for organic revenue growth to the high end of our 7%-9% range and we are reaffirming our expectations for aoi growth to be up 12%-17% and adjusted eps growth between 20% and 25% We continue to expect accelerated AOI margin expansion this fiscal year consistent with our expectations, capitalizing on the company's multiple operating levers while mobilizing a record level of new business openings. As John mentioned, the outlook for fiscal 2026 does not currently reflect the multi-year engagement with a top global hyperscaler that is currently underway. In summary, we are seeing strong momentum throughout the company as our teams continue to execute our growth strategies led by extensive new business wins and high client retention rates. We also believe our entry into the hyperscale data center market further advances the company's growth opportunities. These positive trends in the business are translating into strong revenue and profitability, positioning the company well for continued success this year. We are confident in our ability to build on this momentum into fiscal 2027. We continue to expect accelerated AOI margin expansion this fiscal year consistent with our expectations, capitalizing on the company's multiple operating levers while mobilizing a record level of new business openings. we continue to expect accelerated aoi margin expansion this fiscal year consistent with our expectations capitalizing on the company's multiple operating levers while mobilizing a record level of new business openings As John mentioned, the outlook for fiscal 2026 does not currently reflect the multi-year engagement with a top global hyperscaler that is currently underway. as john mentioned the outlook for fiscal 2026 does not currently reflect the multi-year engagement with a top global hyperscaler that is currently underway In summary, we are seeing strong momentum throughout the company as our teams continue to execute our growth strategies led by extensive new business wins and high client retention rates. in summary we are seeing strong momentum throughout the company as our teams continue to execute our growth strategies led by extensive new business wins and high client retention rates We also believe our entry into the hyperscale data center market further advances the company's growth opportunities. we also believe our entry into the hyperscale data center market further advances the company's growth opportunities These positive trends in the business are translating into strong revenue and profitability, positioning the company well for continued success this year. these positive trends in the business are translating into strong revenue and profitability positioning the company well for continued success this year We are confident in our ability to build on this momentum into fiscal 2027. we are confident in our ability to build on this momentum into fiscal 2027 As John always says, we wouldn't be where we are today without our teams around the world, and we thank them for all their efforts. We could not be more excited about the future. Thank you, everyone. Operator, we will now open the call for questions. As John always says, we wouldn't be where we are today without our teams around the world, and we thank them for all their efforts. as john always says we wouldn't be where we are today without our teams around the world and we thank them for all their efforts We could not be more excited about the future. we could not be more excited about the future Thank you, everyone. thank you everyone Operator, we will now open the call for questions. operator we will now open the call for questions

Speaker 14: Thank you. We'll now begin the question and answer session. If you have a question, please press star then one one on your touch-tone phone. If you're using a speakerphone, you may need to pick up a handset before pressing the numbers. In order to accommodate participants in the question queue, please limit yourself to one question, one follow-up. To remove yourself from the queue, please press star one one again. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Jaafar Mestari with BNP Paribas. Your line is open. Thank you. thank you We'll now begin the question and answer session. we'll now begin the question and answer session If you have a question, please press star then one one on your touch-tone phone. if you have a question please press star then one one on your touch-tone phone If you're using a speakerphone, you may need to pick up a handset before pressing the numbers. if you're using a speakerphone you may need to pick up a handset before pressing the numbers In order to accommodate participants in the question queue, please limit yourself to one question, one follow-up. in order to accommodate participants in the question queue please limit yourself to one question one follow-up To remove yourself from the queue, please press star one one again. to remove yourself from the queue please press star one one again We'll pause for a moment while we compile our Q&A roster. we'll pause for a moment while we compile our q&a roster Our first question comes from Jaafar Mestari with BNP Paribas. our first question comes from jaafar mestari with bnp paribas Your line is open. your line is open

Speaker 7: Hi. Good morning. I had two questions, please. Firstly, on your $1 billion of signings to date, we don't have the exact context for where you were at the same stage last year, but it certainly looks strong. You ended the year at $1.6 billion last year. If you look at the fabric of what you counted in this $1 billion, would you say that the timeline over which these signings are expected to ramp up is fully comparable to historical signings? It's big numbers. Just wondering if to some extent there are some longer projects in there, things that would ramp up over 2027, 2028, for example. Hi. hi Good morning. good morning I had two questions, please. i had two questions please Firstly, on your $1 billion of signings to date, we don't have the exact context for where you were at the same stage last year, but it certainly looks strong. firstly on your $1 billion of signings to date we don't have the exact context for where you were at the same stage last year but it certainly looks strong You ended the year at $1.6 billion last year. you ended the year at $1.6 billion last year If you look at the fabric of what you counted in this $1 billion, would you say that the timeline over which these signings are expected to ramp up is fully comparable to historical signings? if you look at the fabric of what you counted in this $1 billion would you say that the timeline over which these signings are expected to ramp up is fully comparable to historical signings It's big numbers. it's big numbers Just wondering if to some extent there are some longer projects in there, things that would ramp up over 2027, 2028, for example. just wondering if to some extent there are some longer projects in there things that would ramp up over 2027 2028 for example On your guidance updates, small upgrades to where you see organic growth, no change to where you see adjusted EBITs and EPS for the full year. It's a very small delta, but effectively you're implying 5 basis points lower margins if my math is correct. Am I splitting hair or are you accounting for contract startups, or just some caution because another year of record signings would mean another year, of high incentive compensation for your sales teams eventually? On your guidance updates, small upgrades to where you see organic growth, no change to where you see adjusted EBITs and EPS for the full year. on your guidance updates small upgrades to where you see organic growth no change to where you see adjusted ebits and eps for the full year It's a very small delta, but effectively you're implying 5 basis points lower margins if my math is correct. it's a very small delta but effectively you're implying 5 basis points lower margins if my math is correct Am I splitting hair or are you accounting for contract startups, or just some caution because another year of record signings would mean another year, of high incentive compensation for your sales teams eventually? am i splitting hair or are you accounting for contract startups or just some caution because another year of record signings would mean another year of high incentive compensation for your sales teams eventually

Speaker 9: Yeah, John. Yeah, John. yeah john

Speaker 10: Sure. Sure. sure

Speaker 9: Go ahead, John. Okay. I'll take it. Yeah. I'll start, John, and you can chime in. Yeah, in terms of the pacing, Jaafar, we are certainly ahead of schedule with the $1 billion of signings. As you noted last year, the total was $1.6 billion. We are ahead of where we expect it to be at this point. With those signings, we signed a number of large accounts this year, and opening RWJBarnabas and Stone Mountain, Oklahoma Department of Corrections. Very large accounts which are opening in year. One of the good things is, right, we signed a lot of large accounts. We're opening many of those accounts in the second half of the year, and that leads to your second question on margin. Go ahead, John. go ahead john Okay. okay I'll take it. i'll take it Yeah. yeah I'll start, John, and you can chime in. i'll start john and you can chime in Yeah, in terms of the pacing, Jaafar, we are certainly ahead of schedule with the $1 billion of signings. yeah in terms of the pacing jaafar we are certainly ahead of schedule with the $1 billion of signings As you noted last year, the total was $1.6 billion. as you noted last year the total was $1.6 billion We are ahead of where we expect it to be at this point. we are ahead of where we expect it to be at this point With those signings, we signed a number of large accounts this year, and opening RWJBarnabas and Stone Mountain, Oklahoma Department of Corrections. with those signings we signed a number of large accounts this year and opening rwjbarnabas and stone mountain oklahoma department of corrections Very large accounts which are opening in year. very large accounts which are opening in year One of the good things is, right, we signed a lot of large accounts. one of the good things is right we signed a lot of large accounts We're opening many of those accounts in the second half of the year, and that leads to your second question on margin. we're opening many of those accounts in the second half of the year and that leads to your second question on margin Thanks to the success we've seen in selling we're opening a record level of new business in year, and we're still covering those start-up costs and expect to achieve the 30 basis points to 40 basis points of margin improvement that we've been generating. Those margins will scale up as they normally do, and yeah, we'll continue to provide tailwinds into fiscal 2027. Thanks to the success we've seen in selling we're opening a record level of new business in year, and we're still covering those start-up costs and expect to achieve the 30 basis points to 40 basis points of margin improvement that we've been generating. thanks to the success we've seen in selling we're opening a record level of new business in year and we're still covering those start-up costs and expect to achieve the 30 basis points to 40 basis points of margin improvement that we've been generating Those margins will scale up as they normally do, and yeah, we'll continue to provide tailwinds into fiscal 2027. those margins will scale up as they normally do and yeah we'll continue to provide tailwinds into fiscal 2027

Speaker 10: I would just add that, you know, I think the scale-up of that new business obviously is very important to us. We haven't included in the projection in the second half of the year any revenues and/or profitability from the hyperscaler ramp-up, which will take place beginning very soon. There'll be some impact from that that hasn't been projected into the forecast. I think all in all, we do expect continued margin acceleration through the balance of the year. You know, we think it was prudent to go ahead and be slightly conservative, but we have very strong expectations for the business going forward. I would just add that, you know, I think the scale-up of that new business obviously is very important to us. i would just add that you know i think the scale-up of that new business obviously is very important to us We haven't included in the projection in the second half of the year any revenues and/or profitability from the hyperscaler ramp-up, which will take place beginning very soon. we haven't included in the projection in the second half of the year any revenues and/or profitability from the hyperscaler ramp-up which will take place beginning very soon There'll be some impact from that that hasn't been projected into the forecast. there'll be some impact from that that hasn't been projected into the forecast I think all in all, we do expect continued margin acceleration through the balance of the year. i think all in all we do expect continued margin acceleration through the balance of the year You know, we think it was prudent to go ahead and be slightly conservative, but we have very strong expectations for the business going forward. you know we think it was prudent to go ahead and be slightly conservative but we have very strong expectations for the business going forward

Speaker 9: Thank you. Thank you. thank you

Speaker 14: Our next question comes from Ian Zaffino with Oppenheimer. Your line is open. Our next question comes from Ian Zaffino with Oppenheimer. our next question comes from ian zaffino with oppenheimer Your line is open. your line is open

Speaker 6: Hi, great. Thank you very much. You know, really nice quarter here. Seems like these are some of the best results, you know, really trajectory of the business that you've delivered since I've effectively been covering the stock. It's been a while here. It seems like you're firing on all cylinders. Is that kind of the right and accurate read? You know, maybe talk about the sustainability of kind of what we're seeing now into future quarters. Thanks. Hi, great. hi great Thank you very much. thank you very much You know, really nice quarter here. you know really nice quarter here Seems like these are some of the best results, you know, really trajectory of the business that you've delivered since I've effectively been covering the stock. seems like these are some of the best results you know really trajectory of the business that you've delivered since i've effectively been covering the stock It's been a while here. it's been a while here It seems like you're firing on all cylinders. it seems like you're firing on all cylinders Is that kind of the right and accurate read? is that kind of the right and accurate read You know, maybe talk about the sustainability of kind of what we're seeing now into future quarters. you know maybe talk about the sustainability of kind of what we're seeing now into future quarters Thanks. thanks

Speaker 10: Yeah, thank you very much, Ian. Absolutely, we believe in the sustainability of the business. You know, we think we have a very strong leadership team delivering across the board in all geographies and just the continued momentum throughout the business. You know, we have worked very hard to build the organization. It's delivering on those commitments and on those results. So yes, I do believe we're operating on all cylinders. That does not mean that we don't have opportunities for continued improvement and continued growth in the organization. I think the company is very disciplined and focused on that. We are proud of where we are, but wanna get better every day. I do think, you know, that this quarter was very important to us. Yeah, thank you very much, Ian. yeah thank you very much ian Absolutely, we believe in the sustainability of the business. absolutely we believe in the sustainability of the business You know, we think we have a very strong leadership team delivering across the board in all geographies and just the continued momentum throughout the business. you know we think we have a very strong leadership team delivering across the board in all geographies and just the continued momentum throughout the business You know, we have worked very hard to build the organization. you know we have worked very hard to build the organization It's delivering on those commitments and on those results. it's delivering on those commitments and on those results So yes, I do believe we're operating on all cylinders. so yes i do believe we're operating on all cylinders That does not mean that we don't have opportunities for continued improvement and continued growth in the organization. that does not mean that we don't have opportunities for continued improvement and continued growth in the organization I think the company is very disciplined and focused on that. i think the company is very disciplined and focused on that We are proud of where we are, but wanna get better every day. we are proud of where we are but wanna get better every day I do think, you know, that this quarter was very important to us. i do think you know that this quarter was very important to us You know, we believed in the growth narrative that we had been describing over the last several quarters, and what you're seeing is it coming to fruition and us delivering on those expectations. We're confident in our ability to maintain this trajectory and to continue into, 2027 and beyond. You know, we believed in the growth narrative that we had been describing over the last several quarters, and what you're seeing is it coming to fruition and us delivering on those expectations. you know we believed in the growth narrative that we had been describing over the last several quarters and what you're seeing is it coming to fruition and us delivering on those expectations We're confident in our ability to maintain this trajectory and to continue into, 2027 and beyond. we're confident in our ability to maintain this trajectory and to continue into 2027 and beyond

Speaker 6: Okay. Thank you. If I could just drill down on Nexus a little bit. You know, I know you have some agreement and confidentiality stuff going on here, but can you maybe give us an idea of, you know, maybe a little bit more of the economics here as far as, you know, will you be doing or it's overseeing any of the construction? I'm just trying to think about it from a CapEx perspective. Also, can you talk about maybe your market position here, your competitive advantage, and maybe also what margins might look like in this business vis-à-vis your other businesses? I know there's a lot there, but any color you could give me would be helpful. Thanks. Okay. okay Thank you. thank you If I could just drill down on Nexus a little bit. if i could just drill down on nexus a little bit You know, I know you have some agreement and confidentiality stuff going on here, but can you maybe give us an idea of, you know, maybe a little bit more of the economics here as far as, you know, will you be doing or it's overseeing any of the construction? you know i know you have some agreement and confidentiality stuff going on here but can you maybe give us an idea of you know maybe a little bit more of the economics here as far as you know will you be doing or it's overseeing any of the construction I'm just trying to think about it from a CapEx perspective. i'm just trying to think about it from a capex perspective Also, can you talk about maybe your market position here, your competitive advantage, and maybe also what margins might look like in this business vis-à-vis your other businesses? also can you talk about maybe your market position here your competitive advantage and maybe also what margins might look like in this business vis-à-vis your other businesses I know there's a lot there, but any color you could give me would be helpful. i know there's a lot there but any color you could give me would be helpful Thanks. thanks

Speaker 10: I'll start off, and Jim can add to this as well. You know, first of all, yes, we are under a confidentiality agreement with the this customer, and so we can't disclose the terms of the agreement. I think what we've talked about is the fact that they'll be above company average margins and we expect very strong financial returns. I would characterize this as a capital-light business for us. We are not investing in the construction process, you know, as partners in this engagement. That will limit our capital requirement for it. We won't be overseeing the actual construction, but we'll be overseeing all the activities that support the workforce doing the work. I'll start off, and Jim can add to this as well. i'll start off and jim can add to this as well You know, first of all, yes, we are under a confidentiality agreement with the this customer, and so we can't disclose the terms of the agreement. you know first of all yes we are under a confidentiality agreement with the this customer and so we can't disclose the terms of the agreement I think what we've talked about is the fact that they'll be above company average margins and we expect very strong financial returns. i think what we've talked about is the fact that they'll be above company average margins and we expect very strong financial returns I would characterize this as a capital-light business for us. i would characterize this as a capital-light business for us We are not investing in the construction process, you know, as partners in this engagement. we are not investing in the construction process you know as partners in this engagement That will limit our capital requirement for it. that will limit our capital requirement for it We won't be overseeing the actual construction, but we'll be overseeing all the activities that support the workforce doing the work. we won't be overseeing the actual construction but we'll be overseeing all the activities that support the workforce doing the work It's very comprehensive, you know, from hospitality with lodging, entertainment, food, support services, you name it, we'll be doing it. It's a one-stop solution for the company buying these services. That's what's attractive to them. This unique set of capabilities is what we deliver in the national parks. It's what we deliver in extractive services in the mines in Chile, in the remote camps in Canada. It's something we're very good at and have strong management disciplines and capabilities around it. As you know, there are hundreds of these kinds of projects under consideration in the U.S. alone and many more globally. We see it as a very significant addition to the total addressable market that is uniquely positioned against the capabilities that we have. It's very comprehensive, you know, from hospitality with lodging, entertainment, food, support services, you name it, we'll be doing it. it's very comprehensive you know from hospitality with lodging entertainment food support services you name it we'll be doing it It's a one-stop solution for the company buying these services. it's a one-stop solution for the company buying these services That's what's attractive to them. that's what's attractive to them This unique set of capabilities is what we deliver in the national parks. this unique set of capabilities is what we deliver in the national parks It's what we deliver in extractive services in the mines in Chile, in the remote camps in Canada. it's what we deliver in extractive services in the mines in chile in the remote camps in canada It's something we're very good at and have strong management disciplines and capabilities around it. it's something we're very good at and have strong management disciplines and capabilities around it As you know, there are hundreds of these kinds of projects under consideration in the U.S. alone and many more globally. as you know there are hundreds of these kinds of projects under consideration in the u.s alone and many more globally We see it as a very significant addition to the total addressable market that is uniquely positioned against the capabilities that we have. we see it as a very significant addition to the total addressable market that is uniquely positioned against the capabilities that we have We like the growth trajectory coming from it. We're investing significant resources and talent in the execution of this. That's also why this company selected us because they saw the commitment we were willing to make to it right up front. It's exciting, and we'll be able to talk more and disclose more as the summer goes on. I would say at the simplest or lowest possible level, it is going to be accretive to margins and going to be accretive to earnings significantly. We like the growth trajectory coming from it. we like the growth trajectory coming from it We're investing significant resources and talent in the execution of this. we're investing significant resources and talent in the execution of this That's also why this company selected us because they saw the commitment we were willing to make to it right up front. that's also why this company selected us because they saw the commitment we were willing to make to it right up front It's exciting, and we'll be able to talk more and disclose more as the summer goes on. it's exciting and we'll be able to talk more and disclose more as the summer goes on I would say at the simplest or lowest possible level, it is going to be accretive to margins and going to be accretive to earnings significantly. i would say at the simplest or lowest possible level it is going to be accretive to margins and going to be accretive to earnings significantly

Speaker 6: All right. Great work. Thank you very much. All right. all right Great work. great work Thank you very much. thank you very much

Speaker 10: Thank you. Thank you. thank you

Speaker 14: Our next question comes from Andrew Steinerman with JPMorgan. Your line is open. Our next question comes from Andrew Steinerman with JP Morgan. our next question comes from andrew steinerman with jp morgan Your line is open. your line is open

Speaker 2: Hi there. I just wanna go back to the quarter, the second fiscal quarter organic revenue growth. Could you just give us a sense of quantity of how much net new and base growth contributed to the quarter, and which drove the kind of upside to budgeted figures? Hi there. hi there I just wanna go back to the quarter, the second fiscal quarter organic revenue growth. i just wanna go back to the quarter the second fiscal quarter organic revenue growth Could you just give us a sense of quantity of how much net new and base growth contributed to the quarter, and which drove the kind of upside to budgeted figures? could you just give us a sense of quantity of how much net new and base growth contributed to the quarter and which drove the kind of upside to budgeted figures

Speaker 9: Sure. It's Morning, Andrew. For Q2, specifically, the contribution from new was about 5%. Base business was about 4%. That was comprised of 3% pricing and about 1% volume, so that totals to 9%. Then as we mentioned, there's a 3% benefit from the 53rd week which gets you to the 12%. Year to date, I would say similar, more like 4.5% on the new business. I would say a combination of in terms of exceeding expectations, a little bit on the new, as we mentioned, opening more than we expected in year. Then good base business performance, particularly in sports. You know, we talked about a great successful opening of the baseball season. Sure. sure It's Morning, Andrew. it's morning andrew For Q2, specifically, the contribution from new was about 5%. for q2 specifically the contribution from new was about 5% Base business was about 4%. base business was about 4% That was comprised of 3% pricing and about 1% volume, so that totals to 9%. that was comprised of 3% pricing and about 1% volume so that totals to 9% Then as we mentioned, there's a 3% benefit from the 53rd week which gets you to the 12%. then as we mentioned there's a 3% benefit from the 53rd week which gets you to the 12% Year to date, I would say similar, more like 4.5% on the new business. year to date i would say similar more like 4.5% on the new business I would say a combination of in terms of exceeding expectations, a little bit on the new, as we mentioned, opening more than we expected in year. i would say a combination of in terms of exceeding expectations a little bit on the new as we mentioned opening more than we expected in year Then good base business performance, particularly in sports. then good base business performance particularly in sports You know, we talked about a great successful opening of the baseball season. you know we talked about a great successful opening of the baseball season The season did open a little bit earlier this year with a few more games in Q2 than Q3. Those are the main drivers. The season did open a little bit earlier this year with a few more games in Q2 than Q3. the season did open a little bit earlier this year with a few more games in q2 than q3 Those are the main drivers. those are the main drivers

Speaker 2: Okay, thank you. Okay, thank you. okay thank you

Speaker 14: Our next question comes from Toni Kaplan with Morgan Stanley. Your line is open. Our next question comes from Toni Kaplan with Morgan Stanley. our next question comes from toni kaplan with morgan stanley Your line is open. your line is open

Speaker 17: Hi, good morning. This is Yehuda Silverman on for Toni Kaplan. Just wanted to focus on retention a little bit. Like, 98% extremely high following similar path to last year so far. Can you talk about what particularly is driving your customers to remain for longer? Are you seeing any difference in terms of contract duration or cost and deal structure with new renewals? Hi, good morning. hi good morning This is Yehuda Silverman on for Toni Kaplan. this is yehuda silverman on for toni kaplan Just wanted to focus on retention a little bit. just wanted to focus on retention a little bit Like, 98% extremely high following similar path to last year so far. like 98% extremely high following similar path to last year so far Can you talk about what particularly is driving your customers to remain for longer? can you talk about what particularly is driving your customers to remain for longer Are you seeing any difference in terms of contract duration or cost and deal structure with new renewals? are you seeing any difference in terms of contract duration or cost and deal structure with new renewals

Speaker 10: I'm sorry, you were breaking up a little bit on the second half of the question. Could you repeat that? I'm sorry, you were breaking up a little bit on the second half of the question. i'm sorry you were breaking up a little bit on the second half of the question Could you repeat that? could you repeat that

Speaker 17: Yeah, sorry. I'll repeat it. Retention, 98% was very high following a similar path to last year. I was just curious if you could talk about what's driving customers to remain for longer and if you're seeing any difference in terms of contract duration or cost or deal structure with these new contracts. Yeah, sorry. yeah sorry I'll repeat it. i'll repeat it Retention, 98% was very high following a similar path to last year. retention 98% was very high following a similar path to last year I was just curious if you could talk about what's driving customers to remain for longer and if you're seeing any difference in terms of contract duration or cost or deal structure with these new contracts. i was just curious if you could talk about what's driving customers to remain for longer and if you're seeing any difference in terms of contract duration or cost or deal structure with these new contracts

Speaker 10: Yeah, no, first of all, I think it's performance related. We are retaining more business because our customers recognize the value that Aramark brings to their operations. That's always when you retain customers, it's generally 'cause you're doing a good job. We are hyper-focused on that discipline, on making sure that we're delivering on our customers' expectations, and that's leading to these higher retention levels that occurred both last year and are occurring this year. We're, you know, feel very good about that discipline. I would say no difference in terms of tenure of contracts. Those contracts that have expiration dates are coming up as they normally would. We continue to try to proactively retain that business and renew those contracts. Yeah, no, first of all, I think it's performance related. yeah no first of all i think it's performance related We are retaining more business because our customers recognize the value that Aramark brings to their operations. we are retaining more business because our customers recognize the value that aramark brings to their operations That's always when you retain customers, it's generally 'cause you're doing a good job. that's always when you retain customers it's generally 'cause you're doing a good job We are hyper-focused on that discipline, on making sure that we're delivering on our customers' expectations, and that's leading to these higher retention levels that occurred both last year and are occurring this year. we are hyper-focused on that discipline on making sure that we're delivering on our customers' expectations and that's leading to these higher retention levels that occurred both last year and are occurring this year We're, you know, feel very good about that discipline. we're you know feel very good about that discipline I would say no difference in terms of tenure of contracts. i would say no difference in terms of tenure of contracts Those contracts that have expiration dates are coming up as they normally would. those contracts that have expiration dates are coming up as they normally would We continue to try to proactively retain that business and renew those contracts. we continue to try to proactively retain that business and renew those contracts I would say in general, the trends we're seeing in the retention rate are basically aligned to our improved performance overall and our continued discipline around customer relationship management. It's really driving the results. I would say in general, the trends we're seeing in the retention rate are basically aligned to our improved performance overall and our continued discipline around customer relationship management. i would say in general the trends we're seeing in the retention rate are basically aligned to our improved performance overall and our continued discipline around customer relationship management It's really driving the results. it's really driving the results

Speaker 17: Great. Thank you. Just one quick follow-up on facilities. You've highlighted the commitment to sales opportunities within B&I and education. Can you talk about how these have gone so far and when we could expect this to meaningfully show? Great. great Thank you. thank you Just one quick follow-up on facilities. just one quick follow-up on facilities You've highlighted the commitment to sales opportunities within B&I and education. you've highlighted the commitment to sales opportunities within b&i and education Can you talk about how these have gone so far and when we could expect this to meaningfully show? can you talk about how these have gone so far and when we could expect this to meaningfully show

Speaker 10: I'm sorry. Again, I'm having trouble. I am remote unfortunately today, so the speaker phone that I'm on is not working very well. Could you repeat that? I'm sorry. i'm sorry Again, I'm having trouble. again i'm having trouble I am remote unfortunately today, so the speaker phone that I'm on is not working very well. i am remote unfortunately today so the speaker phone that i'm on is not working very well Could you repeat that? could you repeat that

Speaker 17: Sorry about that. Just highlighting facilities, I was curious if you could talk a little bit more about the commitment to sales opportunities within B&I and education, and how these have gone so far and what the expectations for this could be going forward. Sorry about that. sorry about that Just highlighting facilities, I was curious if you could talk a little bit more about the commitment to sales opportunities within B&I and education, and how these have gone so far and what the expectations for this could be going forward. just highlighting facilities i was curious if you could talk a little bit more about the commitment to sales opportunities within b&i and education and how these have gone so far and what the expectations for this could be going forward

Speaker 10: Sure, absolutely. I apologize for my miss. No, there is a significant commitment to selling facility services in the B&I marketplace and in higher education. We continue to be very successful in that regard. Our B&I sales for facilities are generally focused on large institutions and providing services to the food production industry and others. We are not doing facility services, white collar building cleaning. This is not a janitorial company. This is a fully integrated suite of facility services that we bring to large customers. We've had very good results across the board in all the verticals that we serve. It's a business we're very committed to and will continue to invest in it. Sure, absolutely. sure absolutely I apologize for my miss. i apologize for my miss No, there is a significant commitment to selling facility services in the B&I marketplace and in higher education. no there is a significant commitment to selling facility services in the b&i marketplace and in higher education We continue to be very successful in that regard. we continue to be very successful in that regard Our B&I sales for facilities are generally focused on large institutions and providing services to the food production industry and others. our b&i sales for facilities are generally focused on large institutions and providing services to the food production industry and others We are not doing facility services, white collar building cleaning. we are not doing facility services white collar building cleaning This is not a janitorial company. this is not a janitorial company This is a fully integrated suite of facility services that we bring to large customers. this is a fully integrated suite of facility services that we bring to large customers We've had very good results across the board in all the verticals that we serve. we've had very good results across the board in all the verticals that we serve It's a business we're very committed to and will continue to invest in it. it's a business we're very committed to and will continue to invest in it

Speaker 17: Thank you. Thank you. thank you

Speaker 14: Our next question comes from Andrew Wittmann with Baird. Your line is open. Our next question comes from Andrew Wittmann with Baird. our next question comes from andrew wittmann with baird Your line is open. your line is open

Speaker 3: Yeah. Excuse me. Thanks for taking my questions. I wanted to continue to go on more Nexus questions, I guess. But I guess, I mean, just for a clarify, did I hear you say that you believe that this contract could be the largest in the company? Are you saying that to this customer specifically or for this idea of these types of services to data centers? Just related to that, I'm curious as to, now that you've got this contract, why you didn't put it in guidance yet. Is it start timing? Is it something else? Those things would, I think, be helpful for us to understand. Thank you. Yeah. yeah Excuse me. excuse me Thanks for taking my questions. thanks for taking my questions I wanted to continue to go on more Nexus questions, I guess. i wanted to continue to go on more nexus questions i guess But I guess, I mean, just for a clarify, did I hear you say that you believe that this contract could be the largest in the company? but i guess i mean just for a clarify did i hear you say that you believe that this contract could be the largest in the company Are you saying that to this customer specifically or for this idea of these types of services to data centers? are you saying that to this customer specifically or for this idea of these types of services to data centers Just related to that, I'm curious as to, now that you've got this contract, why you didn't put it in guidance yet. just related to that i'm curious as to now that you've got this contract why you didn't put it in guidance yet Is it start timing? is it start timing Is it something else? is it something else Those things would, I think, be helpful for us to understand. those things would i think be helpful for us to understand Thank you. thank you

Speaker 10: Yeah. Yeah. Good questions, Andy. Thank you. Each of these data center locations represents potential value in the hundreds of millions of dollars over the life of the contract. This first contract with this particular hyperscaler is initially for multiple locations and will scale up to being several hundred million dollars on an annualized basis. Yes, this particular contract will be the largest in the company's portfolio when it's fully ramped. The reason for really not including it yet is we're still understanding the ramp-up period in terms of when employment starts in the location, when the housing begins. There's two different time frames, two different locations, and a couple of different entry points and start points. Yeah. yeah Yeah. yeah Good questions, Andy. good questions andy Thank you. thank you Each of these data center locations represents potential value in the hundreds of millions of dollars over the life of the contract. each of these data center locations represents potential value in the hundreds of millions of dollars over the life of the contract This first contract with this particular hyperscaler is initially for multiple locations and will scale up to being several hundred million dollars on an annualized basis. this first contract with this particular hyperscaler is initially for multiple locations and will scale up to being several hundred million dollars on an annualized basis Yes, this particular contract will be the largest in the company's portfolio when it's fully ramped. yes this particular contract will be the largest in the company's portfolio when it's fully ramped The reason for really not including it yet is we're still understanding the ramp-up period in terms of when employment starts in the location, when the housing begins. the reason for really not including it yet is we're still understanding the ramp-up period in terms of when employment starts in the location when the housing begins There's two different time frames, two different locations, and a couple of different entry points and start points. there's two different time frames two different locations and a couple of different entry points and start points You know, we're making significant progress. The work is already beginning. The team's already engaged, but we're still working through the scale up, if you will, in terms of how rapidly we can begin to recognize revenues coming from the employment and the delivery of services to those customers. That's really all there is. It's just a question of how fast does it scale up and when do we have definitive information that we can provide. You know, we're making significant progress. you know we're making significant progress The work is already beginning. the work is already beginning The team's already engaged, but we're still working through the scale up, if you will, in terms of how rapidly we can begin to recognize revenues coming from the employment and the delivery of services to those customers. the team's already engaged but we're still working through the scale up if you will in terms of how rapidly we can begin to recognize revenues coming from the employment and the delivery of services to those customers That's really all there is. that's really all there is It's just a question of how fast does it scale up and when do we have definitive information that we can provide. it's just a question of how fast does it scale up and when do we have definitive information that we can provide

Speaker 3: That's really helpful. I'm gonna keep going on this one a little bit more. Just for all of our benefits, what is the duration of a typical site on one of these things? Maybe for context here, once the center is built, do you anticipate maintaining some level of what I'd call base revenue, recognizing that I have to imagine that revenue is going to be down significantly if you're not having to transport a lot of people and house them and, you know, just be kind of normal day-to-day. I was wondering, is there an opportunity there? Is that part of this? Is that material at all? Any of those kind of thoughts would be helpful as well, I think. That's really helpful. that's really helpful I'm gonna keep going on this one a little bit more. i'm gonna keep going on this one a little bit more Just for all of our benefits, what is the duration of a typical site on one of these things? just for all of our benefits what is the duration of a typical site on one of these things Maybe for context here, once the center is built, do you anticipate maintaining some level of what I'd call base revenue, recognizing that I have to imagine that revenue is going to be down significantly if you're not having to transport a lot of people and house them and, you know, just be kind of normal day-to-day. maybe for context here once the center is built do you anticipate maintaining some level of what i'd call base revenue recognizing that i have to imagine that revenue is going to be down significantly if you're not having to transport a lot of people and house them and you know just be kind of normal day-to-day I was wondering, is there an opportunity there? i was wondering is there an opportunity there Is that part of this? is that part of this Is that material at all? is that material at all Any of those kind of thoughts would be helpful as well, I think. any of those kind of thoughts would be helpful as well i think

Speaker 10: Yeah, you bet. Obviously, during the construction phase, that's when the real revenue production will take place. These are multiple year developments, if you will. The time frame for building these is variable depending on the size and the complexity of the operation. It's multiple years. It could be three to five, dependent upon the size and scale and the timing of construction. They do have a shelf life, if you will. Our anticipation is that as we expand our share of this market and our capabilities in this market and our relationship with these customers, is that we'll be moving from one location to the next as they begin to move on to their next opportunity and their next construction site. Yeah, you bet. yeah you bet Obviously, during the construction phase, that's when the real revenue production will take place. obviously during the construction phase that's when the real revenue production will take place These are multiple year developments, if you will. these are multiple year developments if you will The time frame for building these is variable depending on the size and the complexity of the operation. the time frame for building these is variable depending on the size and the complexity of the operation It's multiple years. it's multiple years It could be three to five, dependent upon the size and scale and the timing of construction. it could be three to five dependent upon the size and scale and the timing of construction They do have a shelf life, if you will. they do have a shelf life if you will Our anticipation is that as we expand our share of this market and our capabilities in this market and our relationship with these customers, is that we'll be moving from one location to the next as they begin to move on to their next opportunity and their next construction site. our anticipation is that as we expand our share of this market and our capabilities in this market and our relationship with these customers is that we'll be moving from one location to the next as they begin to move on to their next opportunity and their next construction site We see it as kind of a rolling process here, moving forward, starting with these first two and moving on to other opportunities as that process continues. There will be opportunities to serve the location for normal services, whether it be Refreshment Services or Workplace Experience Group or, you know, food service of the like, on a continuing basis for a smaller number of employees. The real revenue and profit opportunity is in the construction phase on these particular sites. You know, we'll ramp these and then we'll rotate on to new opportunities. As I said, there are several hundred of these projects on the boards, as you know, across the U.S. I think some count as high as 700 projects. It remains to be seen how many actually get built. We see it as kind of a rolling process here, moving forward, starting with these first two and moving on to other opportunities as that process continues. we see it as kind of a rolling process here moving forward starting with these first two and moving on to other opportunities as that process continues There will be opportunities to serve the location for normal services, whether it be Refreshment Services or Workplace Experience Group or, you know, food service of the like, on a continuing basis for a smaller number of employees. there will be opportunities to serve the location for normal services whether it be refreshment services or workplace experience group or you know food service of the like on a continuing basis for a smaller number of employees The real revenue and profit opportunity is in the construction phase on these particular sites. the real revenue and profit opportunity is in the construction phase on these particular sites You know, we'll ramp these and then we'll rotate on to new opportunities. you know we'll ramp these and then we'll rotate on to new opportunities As I said, there are several hundred of these projects on the boards, as you know, across the U.S. as i said there are several hundred of these projects on the boards as you know across the u.s I think some count as high as 700 projects. i think some count as high as 700 projects It remains to be seen how many actually get built. it remains to be seen how many actually get built In the meantime, there is a lot of opportunity for us to pursue and significant profitability for us to earn. In the meantime, there is a lot of opportunity for us to pursue and significant profitability for us to earn. in the meantime there is a lot of opportunity for us to pursue and significant profitability for us to earn

Speaker 3: Thank you very much. Thank you very much. thank you very much

Speaker 14: Our next question comes from Faiza Alwy with Deutsche Bank. Our next question comes from Faiza Alwy with Deutsche Bank. our next question comes from faiza alwy with deutsche bank

Speaker 4: Yes. Hi. Thank you. Following up around the same line of questioning, are you anticipating sort of just, you know, you talked about the ramp up in revenues and costs. I'm curious, you know, given that you talked about an asset light model, like, are you expecting costs to come before the revenues roll in? You know, if you could talk about the timing of that, or is it gonna be more of a, you know, one-to-one situation where you incur the costs when you start getting the revenues? Yes. yes Hi. hi Thank you. thank you Following up around the same line of questioning, are you anticipating sort of just, you know, you talked about the ramp up in revenues and costs. following up around the same line of questioning are you anticipating sort of just you know you talked about the ramp up in revenues and costs I'm curious, you know, given that you talked about an asset light model, like, are you expecting costs to come before the revenues roll in? i'm curious you know given that you talked about an asset light model like are you expecting costs to come before the revenues roll in You know, if you could talk about the timing of that, or is it gonna be more of a, you know, one-to-one situation where you incur the costs when you start getting the revenues? you know if you could talk about the timing of that or is it gonna be more of a you know one-to-one situation where you incur the costs when you start getting the revenues

Speaker 10: Yeah, I would say, I'll let Jim talk a little bit about the accounting of it. Generally these contracts will be cost reimbursable. You know, so it's the costs that we incur to start up, you know, while there won't be any customers initially, and we'll be ramping to serve those people either lodging and/or working on site, that will incur no operating costs in the early stages. Jim, do you wanna talk about the accounting of this? Yeah, I would say, I'll let Jim talk a little bit about the accounting of it. yeah i would say i'll let jim talk a little bit about the accounting of it Generally these contracts will be cost reimbursable. generally these contracts will be cost reimbursable You know, so it's the costs that we incur to start up, you know, while there won't be any customers initially, and we'll be ramping to serve those people either lodging and/or working on site, that will incur no operating costs in the early stages. you know so it's the costs that we incur to start up you know while there won't be any customers initially and we'll be ramping to serve those people either lodging and/or working on site that will incur no operating costs in the early stages Jim, do you wanna talk about the accounting of this? jim do you wanna talk about the accounting of this

Speaker 9: I mean, I'll keep it, you know, pretty high level again for competitive reasons. Our model does not entail investing significant capital for housing or lodging as part of our balance sheet per se. With that, it's not a situation where there's significant costs in advance of the revenues ramping up. Again, the way we've structured this is more aligned with, you know, our costs will be ramp up in line with the revenues and services that we are providing. It's a situation where there is not significant startup cost. It reaches the targeted margins very quickly. As John mentioned, you know, those margins are above average for the company. It's a light capital, so low capital investment. I mean, I'll keep it, you know, pretty high level again for competitive reasons. i mean i'll keep it you know pretty high level again for competitive reasons Our model does not entail investing significant capital for housing or lodging as part of our balance sheet per se. our model does not entail investing significant capital for housing or lodging as part of our balance sheet per se With that, it's not a situation where there's significant costs in advance of the revenues ramping up. with that it's not a situation where there's significant costs in advance of the revenues ramping up Again, the way we've structured this is more aligned with, you know, our costs will be ramp up in line with the revenues and services that we are providing. again the way we've structured this is more aligned with you know our costs will be ramp up in line with the revenues and services that we are providing It's a situation where there is not significant startup cost. it's a situation where there is not significant startup cost It reaches the targeted margins very quickly. it reaches the targeted margins very quickly As John mentioned, you know, those margins are above average for the company. as john mentioned you know those margins are above average for the company It's a light capital, so low capital investment. it's a light capital so low capital investment Generally, the working capital is favorable as well. Generally, the working capital is favorable as well. generally the working capital is favorable as well

Speaker 4: Okay, wonderful. That's very helpful. I guess I'm curious, like there are some companies out there that seem to be in a similar line of business, but are taking on sort of more CapEx and, you know, so a more asset-heavy approach. I'm curious competitively, you know, what are you hearing from your customers? Is there a reason for them to prefer companies, you know, that are willing to take on that CapEx investment or, you know, are they neutral? Just give us some context around that piece. Okay, wonderful. okay wonderful That's very helpful. that's very helpful I guess I'm curious, like there are some companies out there that seem to be in a similar line of business, but are taking on sort of more CapEx and, you know, so a more asset-heavy approach. i guess i'm curious like there are some companies out there that seem to be in a similar line of business but are taking on sort of more capex and you know so a more asset-heavy approach I'm curious competitively, you know, what are you hearing from your customers? i'm curious competitively you know what are you hearing from your customers Is there a reason for them to prefer companies, you know, that are willing to take on that CapEx investment or, you know, are they neutral? is there a reason for them to prefer companies you know that are willing to take on that capex investment or you know are they neutral Just give us some context around that piece. just give us some context around that piece

Speaker 10: I would say, you know, first of all, I think that's a philosophical decision for the potential client to make. We would not necessarily be opposed to investing if the client desired it and we could earn appropriate returns attached to that investment. It's not the way we've engaged to date, and it's not anticipated that it would be a significant requirement going forward. That, you know, these projects are so significant and require so much capital that this, and there's such a degree of uncertainty in terms of the ramp-up schedules, construction schedules, permitting, all those things that go into the development process, that the capital investment is not a significant consideration for those clients. I would say, you know, first of all, I think that's a philosophical decision for the potential client to make. i would say you know first of all i think that's a philosophical decision for the potential client to make We would not necessarily be opposed to investing if the client desired it and we could earn appropriate returns attached to that investment. we would not necessarily be opposed to investing if the client desired it and we could earn appropriate returns attached to that investment It's not the way we've engaged to date, and it's not anticipated that it would be a significant requirement going forward. it's not the way we've engaged to date and it's not anticipated that it would be a significant requirement going forward That, you know, these projects are so significant and require so much capital that this, and there's such a degree of uncertainty in terms of the ramp-up schedules, construction schedules, permitting, all those things that go into the development process, that the capital investment is not a significant consideration for those clients. that you know these projects are so significant and require so much capital that this and there's such a degree of uncertainty in terms of the ramp-up schedules construction schedules permitting all those things that go into the development process that the capital investment is not a significant consideration for those clients Their costs of capital are lower, and frankly, the investment that they're making is very significant. The housing is a, pardon the expression, but a drop in the bucket compared to the actual total cost of building a hyperscale data center. You know, I think, we're positioned well and we believe that this is a significant opportunity that we can scale, that we've got these unique advantages and capabilities that we can bring to bear. We can offer a very, call it a one-stop-shop solution, reduce a lot of complexity in the process so that they're not having to deal with multiple subcontractors and the like, and I think they find that option attractive. We're gonna build it and we're very excited about it. Their costs of capital are lower, and frankly, the investment that they're making is very significant. their costs of capital are lower and frankly the investment that they're making is very significant The housing is a, pardon the expression, but a drop in the bucket compared to the actual total cost of building a hyperscale data center. the housing is a pardon the expression but a drop in the bucket compared to the actual total cost of building a hyperscale data center You know, I think, we're positioned well and we believe that this is a significant opportunity that we can scale, that we've got these unique advantages and capabilities that we can bring to bear. you know i think we're positioned well and we believe that this is a significant opportunity that we can scale that we've got these unique advantages and capabilities that we can bring to bear We can offer a very, call it a one-stop-shop solution, reduce a lot of complexity in the process so that they're not having to deal with multiple subcontractors and the like, and I think they find that option attractive. we can offer a very call it a one-stop-shop solution reduce a lot of complexity in the process so that they're not having to deal with multiple subcontractors and the like and i think they find that option attractive We're gonna build it and we're very excited about it. we're gonna build it and we're very excited about it

Speaker 4: Great. Thank you so much. Great. great Thank you so much. thank you so much

Speaker 14: Our next question comes from Curtis Nagle with Bank of America. Your line is open. Our next question comes from Curtis Nagle with Bank of America. our next question comes from curtis nagle with bank of america Your line is open. your line is open

Speaker 15: Hi, good morning. This is Ryan Rivera on for Curtis Nagle. Can you touch on the sports event calendar for the remainder of FY 2026? Any upcoming events that can meaningfully impact revenue or profit? Would you say that growth is more dependent on adding new stadiums and teams? Finally, is the World Cup still expected to be a neutral event for the company? Thank you. Hi, good morning. hi good morning This is Ryan Rivera on for Curtis Nagle. this is ryan rivera on for curtis nagle Can you touch on the sports event calendar for the remainder of FY 2026? can you touch on the sports event calendar for the remainder of fy 2026 Any upcoming events that can meaningfully impact revenue or profit? any upcoming events that can meaningfully impact revenue or profit Would you say that growth is more dependent on adding new stadiums and teams? would you say that growth is more dependent on adding new stadiums and teams Finally, is the World Cup still expected to be a neutral event for the company? finally is the world cup still expected to be a neutral event for the company Thank you. thank you

Speaker 9: Sure. Yeah, John, I can kick it off. As I mentioned, the second quarter did benefit from MLB schedule starting early. We also had strong per caps and good performance with the opening of that baseball season. We did have the World Baseball Classic in Q2 as well, I think that maybe contributed about 1% to the second quarter growth. In terms of the outlook, in terms of FIFA, as we've mentioned, we see that relatively neutral versus the prior year, as there'll be less concert events as we roll out those games. I think there's 17 games scheduled as part of FIFA operating across four Aramark stadiums. Sure. sure Yeah, John, I can kick it off. yeah john i can kick it off As I mentioned, the second quarter did benefit from MLB schedule starting early. as i mentioned the second quarter did benefit from mlb schedule starting early We also had strong per caps and good performance with the opening of that baseball season. we also had strong per caps and good performance with the opening of that baseball season We did have the World Baseball Classic in Q2 as well, I think that maybe contributed about 1% to the second quarter growth. we did have the world baseball classic in q2 as well i think that maybe contributed about 1% to the second quarter growth In terms of the outlook, in terms of FIFA, as we've mentioned, we see that relatively neutral versus the prior year, as there'll be less concert events as we roll out those games. in terms of the outlook in terms of fifa as we've mentioned we see that relatively neutral versus the prior year as there'll be less concert events as we roll out those games I think there's 17 games scheduled as part of FIFA operating across four Aramark stadiums. i think there's 17 games scheduled as part of fifa operating across four aramark stadiums

Speaker 15: If I can squeeze in another one. Can you touch on the enhanced tech capabilities that are driving productivity? What are these key initiatives behind this? How are they tracking versus expectations? What inning would you say that you're in on these productivity benefits? Thanks. If I can squeeze in another one. if i can squeeze in another one Can you touch on the enhanced tech capabilities that are driving productivity? can you touch on the enhanced tech capabilities that are driving productivity What are these key initiatives behind this? what are these key initiatives behind this How are they tracking versus expectations? how are they tracking versus expectations What inning would you say that you're in on these productivity benefits? what inning would you say that you're in on these productivity benefits Thanks. thanks

Speaker 9: We've targeted our tech and our AI really at the most impactful areas for the organization and the performance, right? Targeting food and labor in particular and price. With respect to food, we've talked in the past about, you know, Culinary Co-Pilot, a tool that optimizes our menu planning, factoring in contractual requirements, consumer preferences, and the most optimal cost structure. Really, I'd say going forward, we're implementing a tool called LaborIQ, which is an insights based dashboard and facilitates our General Managers and frontline to essentially plan and optimize labor better. We've targeted our tech and our AI really at the most impactful areas for the organization and the performance, right? we've targeted our tech and our ai really at the most impactful areas for the organization and the performance right Targeting food and labor in particular and price. targeting food and labor in particular and price With respect to food, we've talked in the past about, you know, Culinary Co-Pilot, a tool that optimizes our menu planning, factoring in contractual requirements, consumer preferences, and the most optimal cost structure. with respect to food we've talked in the past about you know culinary co-pilot a tool that optimizes our menu planning factoring in contractual requirements consumer preferences and the most optimal cost structure Really, I'd say going forward, we're implementing a tool called LaborIQ, which is an insights based dashboard and facilitates our General Managers and frontline to essentially plan and optimize labor better. really i'd say going forward we're implementing a tool called laboriq which is an insights based dashboard and facilitates our general managers and frontline to essentially plan and optimize labor better As an example, it allows us to fill roles, labor scheduling across Aramark employees and reduces reliance on agency labor, as this tool makes it easier to find Aramark employees to fill shifts. It helps our GMs to staff labor based on peak and non-peak time. It's a tool that's rolling out very rapidly across the U.S. At this point, we're seeing favorable trends in labor and favorable trends in labor productivity as we continue to roll this tool out. As an example, it allows us to fill roles, labor scheduling across Aramark employees and reduces reliance on agency labor, as this tool makes it easier to find Aramark employees to fill shifts. as an example it allows us to fill roles labor scheduling across aramark employees and reduces reliance on agency labor as this tool makes it easier to find aramark employees to fill shifts It helps our GMs to staff labor based on peak and non-peak time. it helps our gms to staff labor based on peak and non-peak time It's a tool that's rolling out very rapidly across the U.S. it's a tool that's rolling out very rapidly across the u.s At this point, we're seeing favorable trends in labor and favorable trends in labor productivity as we continue to roll this tool out. at this point we're seeing favorable trends in labor and favorable trends in labor productivity as we continue to roll this tool out

Speaker 14: Thank you. Our next question comes from Jasper Bibb with Truist Securities. Your line is open. Thank you. thank you Our next question comes from Jasper Bibb with Truist Securities. our next question comes from jasper bibb with truist securities Your line is open. your line is open

Speaker 8: Hey, good morning, everyone. Maybe I'll follow up on Nexus too. I think you said the $100 million plus earlier was multiple projects. I just wanted to ask if we could break it down to a typical kind of data center construction project and how much revenue you can expect per location. I think some of these larger ones, there might be like a 1,000+ people on site building these things. It sounds like a lot of opportunity there. Just any more detail on the scope of kind of a normal site and the drivers of revenue opportunity there from all the services you're providing would be helpful. Thank you. Hey, good morning, everyone. hey good morning everyone Maybe I'll follow up on Nexus too. maybe i'll follow up on nexus too I think you said the $100 million plus earlier was multiple projects. i think you said the $100 million plus earlier was multiple projects I just wanted to ask if we could break it down to a typical kind of data center construction project and how much revenue you can expect per location. i just wanted to ask if we could break it down to a typical kind of data center construction project and how much revenue you can expect per location I think some of these larger ones, there might be like a 1,000 + people on site building these things. i think some of these larger ones there might be like a 1,000 + people on site building these things It sounds like a lot of opportunity there. it sounds like a lot of opportunity there Just any more detail on the scope of kind of a normal site and the drivers of revenue opportunity there from all the services you're providing would be helpful. just any more detail on the scope of kind of a normal site and the drivers of revenue opportunity there from all the services you're providing would be helpful Thank you. thank you

Speaker 10: Sure. You bet. Well, the size and scale can vary rather dramatically. Some locations with thousands of employees, up to 9 or 10,000. Yeah, they can be They can vary significantly site to site. There's no average data center site. Each of these contracts will look very different, based on the size, scale, location, and the degree of complexity. Is it a remote site? Is it an urban site? Those are, you know, what kind of workforce needs to be brought to bear? Very difficult to give you an average. You know, I would say the best data that we can give you is related to the sites that we have currently under agreement. Sure. sure You bet. you bet Well, the size and scale can vary rather dramatically. well the size and scale can vary rather dramatically Some locations with thousands of employees, up to 9 or 10,000. some locations with thousands of employees up to 9 or 10,000 Yeah, they can be They can vary significantly site to site. yeah they can be they can vary significantly site to site There's no average data center site. there's no average data center site Each of these contracts will look very different, based on the size, scale, location, and the degree of complexity. each of these contracts will look very different based on the size scale location and the degree of complexity Is it a remote site? is it a remote site Is it an urban site? is it an urban site Those are, you know, what kind of workforce needs to be brought to bear? those are you know what kind of workforce needs to be brought to bear Very difficult to give you an average. very difficult to give you an average You know, I would say the best data that we can give you is related to the sites that we have currently under agreement. you know i would say the best data that we can give you is related to the sites that we have currently under agreement As I said, we see the revenues for those to be well over $100 million each annually, and over the life of the contract, several hundred million dollars in terms of size and scale. Again, I apologize for not being able to be more definitive. As I said, we're under an NDA. We have two issues here. First of all, we have a customer who we are absolutely committed to doing the right thing with respect to their confidentiality. We also have a competitive environment where we want to maintain the ability to go ahead and to have first mover advantage, to have competitive advantage. We're being very careful not to disclose a number of things from a competitive perspective. As I said, we see the revenues for those to be well over $100 million each annually, and over the life of the contract, several hundred million dollars in terms of size and scale. as i said we see the revenues for those to be well over $100 million each annually and over the life of the contract several hundred million dollars in terms of size and scale Again, I apologize for not being able to be more definitive. again i apologize for not being able to be more definitive As I said, we're under an NDA. as i said we're under an nda We have two issues here. we have two issues here First of all, we have a customer who we are absolutely committed to doing the right thing with respect to their confidentiality. first of all we have a customer who we are absolutely committed to doing the right thing with respect to their confidentiality We also have a competitive environment where we want to maintain the ability to go ahead and to have first mover advantage, to have competitive advantage. we also have a competitive environment where we want to maintain the ability to go ahead and to have first mover advantage to have competitive advantage We're being very careful not to disclose a number of things from a competitive perspective. we're being very careful not to disclose a number of things from a competitive perspective As the business ramps and the results become clear in our results, it'll be much more transparent for our investors and clients to see. This first opportunity, many hundreds of millions of dollars of opportunity over the course of this particular contract. As the business ramps and the results become clear in our results, it'll be much more transparent for our investors and clients to see. as the business ramps and the results become clear in our results it'll be much more transparent for our investors and clients to see This first opportunity, many hundreds of millions of dollars of opportunity over the course of this particular contract. this first opportunity many hundreds of millions of dollars of opportunity over the course of this particular contract

Speaker 8: Well, awesome. That's helpful. I wanted to pivot to higher education. I think in the past month or so, you picked up a new contract at Texas State, also impacted by some restructuring at the University of Kentucky. I guess, how did you do from a net new perspective so far in the selling season? I think you're not all the way through that. Are there potentially some more opportunities that could come through for fall 2026 on the new business front? Well, awesome. well awesome That's helpful. that's helpful I wanted to pivot to higher education. i wanted to pivot to higher education I think in the past month or so, you picked up a new contract at Texas State, also impacted by some restructuring at the University of Kentucky. i think in the past month or so you picked up a new contract at texas state also impacted by some restructuring at the university of kentucky I guess, how did you do from a net new perspective so far in the selling season? i guess how did you do from a net new perspective so far in the selling season I think you're not all the way through that. i think you're not all the way through that Are there potentially some more opportunities that could come through for fall 2026 on the new business front? are there potentially some more opportunities that could come through for fall 2026 on the new business front

Speaker 10: Yeah, I would say we're positioned again for another record net new performance in the aggregate for the company and in their respective businesses, very positive results. As you said, Texas State was also an award that we had. And University of Kentucky is a disappointment, and, but I will say this, that we saw the opportunity to rebid Kentucky as an opportunity for us to improve the overall financial returns for that contract, which frankly, has been the worst performing contract we've had since it was sold. You know, we saw the opportunity to potentially grow the relationship by taking on either healthcare facilities and keeping the current agreement for higher education. Yeah, I would say we're positioned again for another record net new performance in the aggregate for the company and in their respective businesses, very positive results. yeah i would say we're positioned again for another record net new performance in the aggregate for the company and in their respective businesses very positive results As you said, Texas State was also an award that we had. as you said texas state was also an award that we had And University of Kentucky is a disappointment, and, but I will say this, that we saw the opportunity to rebid Kentucky as an opportunity for us to improve the overall financial returns for that contract, which frankly, has been the worst performing contract we've had since it was sold. and university of kentucky is a disappointment and but i will say this that we saw the opportunity to rebid kentucky as an opportunity for us to improve the overall financial returns for that contract which frankly has been the worst performing contract we've had since it was sold You know, we saw the opportunity to potentially grow the relationship by taking on either healthcare facilities and keeping the current agreement for higher education. you know we saw the opportunity to potentially grow the relationship by taking on either healthcare facilities and keeping the current agreement for higher education Failing that, we saw the opportunity to improve returns of the company and to redeploy the capital to higher return opportunities, that's precisely what happened. You know, we never like to lose, this is one where I feel like ultimately the financial returns for the company are better as a result of not moving forward in that relationship, having to commit significantly greater sums of capital and operating it on very thin margins. On a total basis, net new, again, we've had extraordinary results year to date and expect to achieve another record net new performance this year. Failing that, we saw the opportunity to improve returns of the company and to redeploy the capital to higher return opportunities, that's precisely what happened. failing that we saw the opportunity to improve returns of the company and to redeploy the capital to higher return opportunities that's precisely what happened You know, we never like to lose, this is one where I feel like ultimately the financial returns for the company are better as a result of not moving forward in that relationship, having to commit significantly greater sums of capital and operating it on very thin margins. you know we never like to lose this is one where i feel like ultimately the financial returns for the company are better as a result of not moving forward in that relationship having to commit significantly greater sums of capital and operating it on very thin margins On a total basis, net new, again, we've had extraordinary results year to date and expect to achieve another record net new performance this year. on a total basis net new again we've had extraordinary results year to date and expect to achieve another record net new performance this year

Speaker 8: Very helpful. Thank you for taking the questions. Very helpful. very helpful Thank you for taking the questions. thank you for taking the questions

Speaker 14: Our next question comes from Joshua Chan with UBS. Your line is open. Our next question comes from Joshua Chan with UBS. our next question comes from joshua chan with ubs Your line is open. your line is open

Speaker 11: Hi, good morning, John, Jim. Thanks for taking the questions. Maybe a broader question on kind of customer inquiry levels on some of these new businesses that you have won, you know, in terms of Aramark Nexus, but also in healthcare. Are you seeing similar types of customers, you know, inquiring about, you know, your services in these types of offerings since you have announced them? How have those been trending? Hi, good morning, John, Jim. hi good morning john jim Thanks for taking the questions. thanks for taking the questions Maybe a broader question on kind of customer inquiry levels on some of these new businesses that you have won, you know, in terms of Aramark Nexus, but also in healthcare. maybe a broader question on kind of customer inquiry levels on some of these new businesses that you have won you know in terms of aramark nexus but also in healthcare Are you seeing similar types of customers, you know, inquiring about, you know, your services in these types of offerings since you have announced them? are you seeing similar types of customers you know inquiring about you know your services in these types of offerings since you have announced them How have those been trending? how have those been trending

Speaker 10: Yeah, we see momentum. Yes. Short answer is yes. We see obviously momentum in the healthcare space, particularly with the successful opening and scaling up of Penn, as and well as the anticipated opening of RWJBarnabas. We do have significant momentum in the healthcare space, and we're very pleased with that. Yes, the announcement of Nexus and its and the award of the initial contract has opened the door to a number of other opportunities that we're currently engaged in and evaluating, none of which I'm prepared to disclose right now. Yeah, we see momentum. yeah we see momentum Yes. yes Short answer is yes. short answer is yes We see obviously momentum in the healthcare space, particularly with the successful opening and scaling up of Penn, as and well as the anticipated opening of RWJBarnabas. we see obviously momentum in the healthcare space particularly with the successful opening and scaling up of penn as and well as the anticipated opening of rwjbarnabas We do have significant momentum in the healthcare space, and we're very pleased with that. we do have significant momentum in the healthcare space and we're very pleased with that Yes, the announcement of Nexus and its and the award of the initial contract has opened the door to a number of other opportunities that we're currently engaged in and evaluating, none of which I'm prepared to disclose right now. yes the announcement of nexus and its and the award of the initial contract has opened the door to a number of other opportunities that we're currently engaged in and evaluating none of which i'm prepared to disclose right now

Speaker 11: Sure. Sure. That, that sounds great. I think around now is when you start to have pricing discussions with your customers that reset annually. Could you just talk about posture and what might be a reasonable outcome in terms of those pricing discussions? Sure. sure Sure. sure That, that sounds great. that that sounds great I think around now is when you start to have pricing discussions with your customers that reset annually. i think around now is when you start to have pricing discussions with your customers that reset annually Could you just talk about posture and what might be a reasonable outcome in terms of those pricing discussions? could you just talk about posture and what might be a reasonable outcome in terms of those pricing discussions

Speaker 10: Yeah. Yeah. yeah

Speaker 9: Sure. Yeah. I'll start with, you know, inflation. You know, we're seeing total inflation come in in line with our expectations at about 3.5% or so. As we've talked about, if we don't price for profit, we essentially, you know, price to mitigate inflation. The discussions we're having are in that range of, you know, 3.5%-4% on the contractual base portion of the business. As you know, about two-thirds of the business, as we refer to, as dynamic pricing, that is sort of more rapidly adjusted to the inflation expectations. Inflation is coming in line with the expectations. We have tools at our disposal to counter inflation should it escalate in the second half of the year. Sure. sure Yeah. yeah I'll start with, you know, inflation. i'll start with you know inflation You know, we're seeing total inflation come in in line with our expectations at about 3.5% or so. you know we're seeing total inflation come in in line with our expectations at about 3.5% or so As we've talked about, if we don't price for profit, we essentially, you know, price to mitigate inflation. as we've talked about if we don't price for profit we essentially you know price to mitigate inflation The discussions we're having are in that range of, you know, 3.5%-4% on the contractual base portion of the business. the discussions we're having are in that range of you know 3.5%-4% on the contractual base portion of the business As you know, about two-thirds of the business, as we refer to, as dynamic pricing, that is sort of more rapidly adjusted to the inflation expectations. as you know about two-thirds of the business as we refer to as dynamic pricing that is sort of more rapidly adjusted to the inflation expectations Inflation is coming in line with the expectations. inflation is coming in line with the expectations We have tools at our disposal to counter inflation should it escalate in the second half of the year. we have tools at our disposal to counter inflation should it escalate in the second half of the year

Speaker 11: Great. Thank you both for the color, and congrats on a good quarter. Great. great Thank you both for the color, and congrats on a good quarter. thank you both for the color and congrats on a good quarter

Speaker 9: Thank you. Thank you. thank you

Speaker 10: Thank you. Thank you. thank you

Speaker 14: Our next question comes from Karl Green with RBC Capital Markets. Your line is open. Our next question comes from Karl Green with RBC Capital Markets. our next question comes from karl green with rbc capital markets Your line is open. your line is open

Speaker 12: Thanks very much. Good morning to you both. Just a couple of questions on U.S. organic growth. Firstly, just in sports and entertainment, the higher per cap spending. I just wondered if you could indicate if you're seeing any limits to how high you can push that in terms of price elasticity, or is it still kind of powering along at levels you've seen over the last 12 to 18 months? Then on B&I, within that segment in the U.S., clearly new business and very, you describe it as exceptionally high client retention rates are doing the heaviest of lifting there for double-digit growth. Thanks very much. thanks very much Good morning to you both. good morning to you both Just a couple of questions on U.S. organic growth. just a couple of questions on u.s organic growth Firstly, just in sports and entertainment, the higher per cap spending. firstly just in sports and entertainment the higher per cap spending I just wondered if you could indicate if you're seeing any limits to how high you can push that in terms of price elasticity, or is it still kind of powering along at levels you've seen over the last 12 to 18 months? i just wondered if you could indicate if you're seeing any limits to how high you can push that in terms of price elasticity or is it still kind of powering along at levels you've seen over the last 12 to 18 months Then on B&I, within that segment in the U.S., clearly new business and very, you describe it as exceptionally high client retention rates are doing the heaviest of lifting there for double-digit growth. then on b&i within that segment in the u.s clearly new business and very you describe it as exceptionally high client retention rates are doing the heaviest of lifting there for double-digit growth Could you just talk a little bit more about how like-for-like volumes are trending there, just in terms of higher participation rates, your expanded formats, et cetera, just to give us a sense of seeing how robust that like-for-like volume position is, please? Thank you. Could you just talk a little bit more about how like-for-like volumes are trending there, just in terms of higher participation rates, your expanded formats, et cetera, just to give us a sense of seeing how robust that like-for-like volume position is, please? could you just talk a little bit more about how like-for-like volumes are trending there just in terms of higher participation rates your expanded formats et cetera just to give us a sense of seeing how robust that like-for-like volume position is please Thank you. thank you

Speaker 9: I'll take it off on sports and entertainment, you know, a good quarter in sports. Sports leisure and corrections growing at about 7% underlying, a really great start to the MLB season. I'd say base business growth and volumes, more or less in line with what I mentioned earlier. The 3%-4% for the company is what we're seeing in sports. We obviously have to be sensitive to pricing there and making sure we're providing, you know, experience and economics that are good with the team and appropriate and so forth. Within B&I, again, we've grew over a 20% year to date. Really strong outlook. I'll take it off on sports and entertainment, you know, a good quarter in sports. i'll take it off on sports and entertainment you know a good quarter in sports Sports leisure and corrections growing at about 7% underlying, a really great start to the MLB season. sports leisure and corrections growing at about 7% underlying a really great start to the mlb season I'd say base business growth and volumes, more or less in line with what I mentioned earlier. i'd say base business growth and volumes more or less in line with what i mentioned earlier The 3%-4% for the company is what we're seeing in sports. the 3%-4% for the company is what we're seeing in sports We obviously have to be sensitive to pricing there and making sure we're providing, you know, experience and economics that are good with the team and appropriate and so forth. we obviously have to be sensitive to pricing there and making sure we're providing you know experience and economics that are good with the team and appropriate and so forth Within B&I, again, we've grew over a 20% year to date. within b&i again we've grew over a 20% year to date Really strong outlook. really strong outlook The new business at the end of the day, I think is the main driver there, along with the exceptional retention levels. We had a nice performance with premium catering in the quarter benefiting from the partnership we did with Daniel Boulud. Refreshment services and micro markets also falls into the B&I segment as well, and that business is growing at a similar level. We've seen nice geographic e-expansion in the West Coast and in the New York area in particular, and continue to enhance and increase the route density of that business as well. Some of the drivers with a strong performance there. The new business at the end of the day, I think is the main driver there, along with the exceptional retention levels. the new business at the end of the day i think is the main driver there along with the exceptional retention levels We had a nice performance with premium catering in the quarter benefiting from the partnership we did with Daniel Boulud. we had a nice performance with premium catering in the quarter benefiting from the partnership we did with daniel boulud Refreshment services and micro markets also falls into the B&I segment as well, and that business is growing at a similar level. refreshment services and micro markets also falls into the b&i segment as well and that business is growing at a similar level We've seen nice geographic e-expansion in the West Coast and in the New York area in particular, and continue to enhance and increase the route density of that business as well. we've seen nice geographic e-expansion in the west coast and in the new york area in particular and continue to enhance and increase the route density of that business as well Some of the drivers with a strong performance there. some of the drivers with a strong performance there

Speaker 12: Okay, thank you. Okay, thank you. okay thank you

Speaker 14: Our next question comes from Neil Tyler with Rothschild & Co and Redburn. Your line is open. Our next question comes from Neil Tyler with Rothschild & Co and Redburn. our next question comes from neil tyler with rothschild & co and redburn Your line is open. your line is open

Speaker 13: Yeah, thanks. Good morning. Just one left for me, really. I wanted to go back to the topic of inflation and ask you about sort of learnings that you take from perhaps 2022, 2023 in terms of identifying areas in, in the customer suite of friction that might create opportunities and whether there's, you know, you know, how you expect those to materialize, manifest over the, over the next year or two. Yeah, thanks. yeah thanks Good morning. good morning Just one left for me, really. just one left for me really I wanted to go back to the topic of inflation and ask you about sort of learnings that you take from perhaps 2022, 2023 in terms of identifying areas in, in the customer suite of friction that might create opportunities and whether there's, you know, you know, how you expect those to materialize, manifest over the, over the next year or two. i wanted to go back to the topic of inflation and ask you about sort of learnings that you take from perhaps 2022 2023 in terms of identifying areas in in the customer suite of friction that might create opportunities and whether there's you know you know how you expect those to materialize manifest over the over the next year or two

Speaker 9: We have a number of levers at our disposal. As I mentioned, we generally try to have pricing in line with inflation. On that contractual-based portion of the business, where the pricing is locked in a little bit longer. We have a number of operating levers. We can substitute our menu. The tool I just mentioned a little bit earlier with LaborIQ allows us to flex and optimize our staffing levels. Those are some of the other tools we have at our disposal to counter inflation. It's a very flexible business model. I think the organization is well equipped based on, you know, the experience we had a few years ago. It's a topic of all of our operating reviews. We have a number of levers at our disposal. we have a number of levers at our disposal As I mentioned, we generally try to have pricing in line with inflation. as i mentioned we generally try to have pricing in line with inflation On that contractual-based portion of the business, where the pricing is locked in a little bit longer. on that contractual-based portion of the business where the pricing is locked in a little bit longer We have a number of operating levers. we have a number of operating levers We can substitute our menu. we can substitute our menu The tool I just mentioned a little bit earlier with LaborIQ allows us to flex and optimize our staffing levels. the tool i just mentioned a little bit earlier with laboriq allows us to flex and optimize our staffing levels Those are some of the other tools we have at our disposal to counter inflation. those are some of the other tools we have at our disposal to counter inflation It's a very flexible business model. it's a very flexible business model I think the organization is well equipped based on, you know, the experience we had a few years ago. i think the organization is well equipped based on you know the experience we had a few years ago It's a topic of all of our operating reviews. it's a topic of all of our operating reviews Our supply chain team does a nice job, first of all, mitigating inflation. We tend to have longer term contracts given our scale. As part of all the business reviews that we have, we're always talking about the inflation outlook and what are we doing to mitigate that impact. Our supply chain team does a nice job, first of all, mitigating inflation. our supply chain team does a nice job first of all mitigating inflation We tend to have longer term contracts given our scale. we tend to have longer term contracts given our scale As part of all the business reviews that we have, we're always talking about the inflation outlook and what are we doing to mitigate that impact. as part of all the business reviews that we have we're always talking about the inflation outlook and what are we doing to mitigate that impact

Speaker 10: Yeah, I'll just. Yeah, I'll just. yeah i'll just

Speaker 13: Sorry, John. Go on. I was just gonna say, yeah, in terms of where the, you know, new growth opportunities from first time outsourcing, you know, might be shaken out by a sort of a higher inflation environment. Sorry, John. sorry john Go on. go on I was just gonna say, yeah, in terms of where the, you know, new growth opportunities from first time outsourcing, you know, might be shaken out by a sort of a higher inflation environment. i was just gonna say yeah in terms of where the you know new growth opportunities from first time outsourcing you know might be shaken out by a sort of a higher inflation environment

Speaker 10: Yeah, I think that that's a very good point. I think it's not just the inflation environment, it's the total macro environment with respect to things. That's why you're seeing higher levels of outsourcing in healthcare because not only are they challenged with overall inflation in that backdrop, but they're also significantly under pressure from reduced reimbursements from the governments that they where we operate. There's an overall cost pressure that's occurring that's been really building for a number of years. More and more institutions have recognized that they are disadvantaged. Yeah, I think that that's a very good point. yeah i think that that's a very good point I think it's not just the inflation environment, it's the total macro environment with respect to things. i think it's not just the inflation environment it's the total macro environment with respect to things That's why you're seeing higher levels of outsourcing in healthcare because not only are they challenged with overall inflation in that backdrop, but they're also significantly under pressure from reduced reimbursements from the governments that they where we operate. that's why you're seeing higher levels of outsourcing in healthcare because not only are they challenged with overall inflation in that backdrop but they're also significantly under pressure from reduced reimbursements from the governments that they where we operate There's an overall cost pressure that's occurring that's been really building for a number of years. there's an overall cost pressure that's occurring that's been really building for a number of years More and more institutions have recognized that they are disadvantaged. more and more institutions have recognized that they are disadvantaged That's one of the reasons you're seeing significant outsourcing from people like Penn and RWJBarnabas, you know, to systemize the outsourcing approach to take advantage of that ability to reduce cost in the long run, not only from a product cost perspective, but from an operations administration and efficiency perspective as well. Integrating all those services that, you know, helps to really manage the total employment level and the ability to deliver the right outcomes for patients. There is significant opportunity there, and we see that manifesting itself in particular in healthcare, but we see that in other segments as well. That's one of the reasons you're seeing significant outsourcing from people like Penn and RWJBarnabas, you know, to systemize the outsourcing approach to take advantage of that ability to reduce cost in the long run, not only from a product cost perspective, but from an operations administration and efficiency perspective as well. that's one of the reasons you're seeing significant outsourcing from people like penn and rwjbarnabas you know to systemize the outsourcing approach to take advantage of that ability to reduce cost in the long run not only from a product cost perspective but from an operations administration and efficiency perspective as well Integrating all those services that, you know, helps to really manage the total employment level and the ability to deliver the right outcomes for patients. integrating all those services that you know helps to really manage the total employment level and the ability to deliver the right outcomes for patients There is significant opportunity there, and we see that manifesting itself in particular in healthcare, but we see that in other segments as well. there is significant opportunity there and we see that manifesting itself in particular in healthcare but we see that in other segments as well

Speaker 13: Okay. Yeah, great. Thanks. That makes total sense. Okay. okay Yeah, great. yeah great Thanks. thanks That makes total sense. that makes total sense

Speaker 14: Our next question comes from Ajay Nandal with Citi. Your line is open. Our next question comes from Ajay Nandal with Citi. our next question comes from ajay nandal with citi Your line is open. your line is open

Speaker 1: Hi, good morning. This is Ajay on for Leo. One question for me, please. Compass Group at its earnings call alluded to adverse weather conditions impacting their business to some extent in the U.S. during the months of February and March. Did you see any such impact on your business? If yes, can you kind of quantify that? Thank you. Hi, good morning. hi good morning This is Ajay on for Leo. this is ajay on for leo One question for me, please. one question for me please Compass Group at its earnings call alluded to adverse weather conditions impacting their business to some extent in the U.S. during the months of February and March. compass group at its earnings call alluded to adverse weather conditions impacting their business to some extent in the u.s during the months of february and march Did you see any such impact on your business? did you see any such impact on your business If yes, can you kind of quantify that? if yes can you kind of quantify that Thank you. thank you

Speaker 9: We had a little trouble hearing. Could you just repeat that question, please? We had a little trouble hearing. we had a little trouble hearing Could you just repeat that question, please? could you just repeat that question please

Speaker 1: Yeah, sure. Just wanted to check that Compass Group at its call alluded to adverse weather conditions. Yeah, sure. yeah sure Just wanted to check that Compass Group at its call alluded to adverse weather conditions. just wanted to check that compass group at its call alluded to adverse weather conditions

Speaker 9: Oh. Oh. oh

Speaker 1: Business development during the months of February and March. Business development during the months of February and March. business development during the months of february and march

Speaker 9: Yes. Got it. Okay. Yes. yes Got it. got it Okay. okay

Speaker 1: Did you see any such impact? Did you see any such impact? did you see any such impact

Speaker 9: Sure. We, you know, we did have an unusual amount of snow and ice, particularly in the Northeast, a little bit of the South on the quarter, which, you know, did have an impact on our higher ed and K-12 business. I'd say maybe $15 million-$20 million of revenue and a few million of AOI. You know, despite the weather concerns, we still, you know, achieved the targets that we had communicated. Sure. sure We, you know, we did have an unusual amount of snow and ice, particularly in the Northeast, a little bit of the South on the quarter, which, you know, did have an impact on our higher ed and K-12 business. we you know we did have an unusual amount of snow and ice particularly in the northeast a little bit of the south on the quarter which you know did have an impact on our higher ed and k-12 business I'd say maybe $15 million-$20 million of revenue and a few million of AOI. i'd say maybe $15 million-$20 million of revenue and a few million of aoi You know, despite the weather concerns, we still, you know, achieved the targets that we had communicated. you know despite the weather concerns we still you know achieved the targets that we had communicated

Speaker 1: Should that reverse in this quarter? Should that reverse in this quarter? should that reverse in this quarter

Speaker 10: Yeah, that was in the second quarter. Yeah, that was in the second quarter. yeah that was in the second quarter

Speaker 1: Oh. Understood. Thank you. Oh. oh Understood. understood Thank you. thank you

Speaker 10: That doesn't come back. That would be something we'll lap next year. That doesn't come back. that doesn't come back That would be something we'll lap next year. that would be something we'll lap next year

Speaker 1: Got it. Thank you. Got it. got it Thank you. thank you

Speaker 14: Our last question comes from Stephanie Moore with Jefferies. Your line is open. Our last question comes from Stephanie Moore with Jefferies. our last question comes from stephanie moore with jefferies Your line is open. your line is open

Speaker 16: Great. Thank you so much. I wanted to touch a little bit on what you might be seeing from just a base standpoint and general customer health. Clearly, it's not embedded in your results at all, but I think there's some, you know, maybe, you know, questioning or skepticism out there about the overall health of the consumer, just given higher fuel prices and the like. Just curious and, you know, maybe the aspects of your business where you would be more sensitive to discretionary income by the consumer, if you've seen anything in the last couple of months that could suggest any kind of pulling back of activity. That'd be helpful. Thanks. Great. great Thank you so much. thank you so much I wanted to touch a little bit on what you might be seeing from just a base standpoint and general customer health. i wanted to touch a little bit on what you might be seeing from just a base standpoint and general customer health Clearly, it's not embedded in your results at all, but I think there's some, you know, maybe, you know, questioning or skepticism out there about the overall health of the consumer, just given higher fuel prices and the like. clearly it's not embedded in your results at all but i think there's some you know maybe you know questioning or skepticism out there about the overall health of the consumer just given higher fuel prices and the like Just curious and, you know, maybe the aspects of your business where you would be more sensitive to discretionary income by the consumer, if you've seen anything in the last couple of months that could suggest any kind of pulling back of activity. just curious and you know maybe the aspects of your business where you would be more sensitive to discretionary income by the consumer if you've seen anything in the last couple of months that could suggest any kind of pulling back of activity That'd be helpful. that'd be helpful Thanks. thanks

Speaker 10: Yeah. Happy to take that. As a matter of fact, we are still seeing strong consumer demand in those consumer sensitive businesses that we operate. When you think about us, think about sports and entertainment, that's clearly an area where there's some customer sensitivity or the potential for it. We're seeing very strong results both in per capita spending as well as in attendance. We're seeing strong reservation capacity in the national parks, you know, significant, you know, consumer. Those businesses are generally significantly impacted by a consumer behavior. Strong reservations and the outlook very good for those businesses as well. The short answer is we're not really seeing a consumer impacted yet in those businesses. Yeah. yeah Happy to take that. happy to take that As a matter of fact, we are still seeing strong consumer demand in those consumer sensitive businesses that we operate. as a matter of fact we are still seeing strong consumer demand in those consumer sensitive businesses that we operate When you think about us, think about sports and entertainment, that's clearly an area where there's some customer sensitivity or the potential for it. when you think about us think about sports and entertainment that's clearly an area where there's some customer sensitivity or the potential for it We're seeing very strong results both in per capita spending as well as in attendance. we're seeing very strong results both in per capita spending as well as in attendance We're seeing strong reservation capacity in the national parks, you know, significant, you know, consumer. we're seeing strong reservation capacity in the national parks you know significant you know consumer Those businesses are generally significantly impacted by a consumer behavior. those businesses are generally significantly impacted by a consumer behavior Strong reservations and the outlook very good for those businesses as well. strong reservations and the outlook very good for those businesses as well The short answer is we're not really seeing a consumer impacted yet in those businesses. the short answer is we're not really seeing a consumer impacted yet in those businesses We see the consumer as being very resilient at this point and not seeing it impact our business to date. You know, we do believe that this business has been historically very resilient in times of higher inflation, and generally, you know, we're serving people where they work, where they, where they are getting medical care, where they're studying. People are gonna continue to consume in those environments, and we're not seeing a significant impact as a result of a change in the consumer's attitudes at this stage. We see the consumer as being very resilient at this point and not seeing it impact our business to date. we see the consumer as being very resilient at this point and not seeing it impact our business to date You know, we do believe that this business has been historically very resilient in times of higher inflation, and generally, you know, we're serving people where they work, where they, where they are getting medical care, where they're studying. you know we do believe that this business has been historically very resilient in times of higher inflation and generally you know we're serving people where they work where they where they are getting medical care where they're studying People are gonna continue to consume in those environments, and we're not seeing a significant impact as a result of a change in the consumer's attitudes at this stage. people are gonna continue to consume in those environments and we're not seeing a significant impact as a result of a change in the consumer's attitudes at this stage

Speaker 16: Understood. Thank you. Then just a follow-up. You touched a little bit about this, but clearly really strong new wins and performance. Could you kind of maybe speak to the competitive environment? You know, if you know, how you would frame some of your increased wins from your own obviously actions over the last several years, which have been, you know, very favorable, but at the same time, you know, maybe due to any kind of competitive changes as well where, you know, you're able to kinda capture some incremental share. Any way to frame that would be helpful. Thanks. Understood. understood Thank you. thank you Then just a follow-up. then just a follow-up You touched a little bit about this, but clearly really strong new wins and performance. you touched a little bit about this but clearly really strong new wins and performance Could you kind of maybe speak to the competitive environment? could you kind of maybe speak to the competitive environment You know, if you know, how you would frame some of your increased wins from your own obviously actions over the last several years, which have been, you know, very favorable, but at the same time, you know, maybe due to any kind of competitive changes as well where, you know, you're able to kinda capture some incremental share. you know if you know how you would frame some of your increased wins from your own obviously actions over the last several years which have been you know very favorable but at the same time you know maybe due to any kind of competitive changes as well where you know you're able to kinda capture some incremental share Any way to frame that would be helpful. any way to frame that would be helpful Thanks. thanks

Speaker 10: Sure. You know, I would say we are continuing to enjoy significant success, and in all the markets where we operate, both domestically and internationally, and across all the different businesses. I think it's as a result of the investment that we've continued to make in the growth algorithm, if you will, and the growth initiatives inside the organization. The competitive environment has always been robust. We've always had the competitors that are very interested in growth as well, but we've always been able to maintain a solid growth rate. Sure. sure You know, I would say we are continuing to enjoy significant success, and in all the markets where we operate, both domestically and internationally, and across all the different businesses. you know i would say we are continuing to enjoy significant success and in all the markets where we operate both domestically and internationally and across all the different businesses I think it's as a result of the investment that we've continued to make in the growth algorithm, if you will, and the growth initiatives inside the organization. i think it's as a result of the investment that we've continued to make in the growth algorithm if you will and the growth initiatives inside the organization The competitive environment has always been robust. the competitive environment has always been robust We've always had the competitors that are very interested in growth as well, but we've always been able to maintain a solid growth rate. we've always had the competitors that are very interested in growth as well but we've always been able to maintain a solid growth rate I think it's a result of our increased investment in growth, our performance throughout the services that we provide to our customers and the unique proposals that we develop for those prospective customers and the quality of the capabilities that we bring to bear. This has always been a competitive marketplace. I think we are well-positioned to compete in it. We're seeing enhanced throughput as a result of first-time outsourcing. It is a significant proportion of our new wins. We're also still maintaining the competitive dynamic against our large competitors as well as the regional competitors. We're being very successful, we're being very diligent, and we're being very focused on growth. I think it's a result of our increased investment in growth, our performance throughout the services that we provide to our customers and the unique proposals that we develop for those prospective customers and the quality of the capabilities that we bring to bear. i think it's a result of our increased investment in growth our performance throughout the services that we provide to our customers and the unique proposals that we develop for those prospective customers and the quality of the capabilities that we bring to bear This has always been a competitive marketplace. this has always been a competitive marketplace I think we are well-positioned to compete in it. i think we are well-positioned to compete in it We're seeing enhanced throughput as a result of first-time outsourcing. we're seeing enhanced throughput as a result of first-time outsourcing It is a significant proportion of our new wins. it is a significant proportion of our new wins We're also still maintaining the competitive dynamic against our large competitors as well as the regional competitors. we're also still maintaining the competitive dynamic against our large competitors as well as the regional competitors We're being very successful, we're being very diligent, and we're being very focused on growth. we're being very successful we're being very diligent and we're being very focused on growth Right now, we continue to win disproportionate numbers of these opportunities. We're hyper-focused on it, and we continue to enjoy success. Right now, we continue to win disproportionate numbers of these opportunities. right now we continue to win disproportionate numbers of these opportunities We're hyper-focused on it, and we continue to enjoy success. we're hyper-focused on it and we continue to enjoy success

Speaker 16: Absolutely. Thank you, everybody. Absolutely. absolutely Thank you, everybody. thank you everybody

Speaker 14: I'm not showing any further questions. I'll turn the call back over to Mr. Zillmer for any further remarks. I'm not showing any further questions. i'm not showing any further questions I'll turn the call back over to Mr. Zillmer for any further remarks. i'll turn the call back over to mr zillmer for any further remarks

Speaker 10: Perfect. Thank you very much. Thank you all for your support of the company and participating this morning. We are extraordinarily excited about the results that we've delivered and about the prospects for the balance of fiscal 2026 and 2027. We're executing our growth strategies with focus and discipline. As I said earlier, our ambitions for Aramark have never been higher, and we are consistently setting new milestones. We expect to continue to do that, and we believe that we have all the capabilities and the best team in the industry, and we're gonna make that happen. Thank you very much. Perfect. perfect Thank you very much. thank you very much Thank you all for your support of the company and participating this morning. thank you all for your support of the company and participating this morning We are extraordinarily excited about the results that we've delivered and about the prospects for the balance of fiscal 2026 and 2027. we are extraordinarily excited about the results that we've delivered and about the prospects for the balance of fiscal 2026 and 2027 We're executing our growth strategies with focus and discipline. we're executing our growth strategies with focus and discipline As I said earlier, our ambitions for Aramark have never been higher, and we are consistently setting new milestones. as i said earlier our ambitions for aramark have never been higher and we are consistently setting new milestones We expect to continue to do that, and we believe that we have all the capabilities and the best team in the industry, and we're gonna make that happen. we expect to continue to do that and we believe that we have all the capabilities and the best team in the industry and we're gonna make that happen Thank you very much. thank you very much

Speaker 14: Thank you for participating. This does conclude today's presentation. You may now disconnect, and have a wonderful day. Thank you for participating. thank you for participating This does conclude today's presentation. this does conclude today's presentation You may now disconnect, and have a wonderful day. you may now disconnect and have a wonderful day