Aramark's Q2 2025: Key Contradictions in Inflation Management, Revenue Growth, and Business Projections

Inflation management and cost recovery, base revenue growth drivers, inflation management and pricing strategy, new business growth and retention rates, net new business growth projections are the key contradictions discussed in Aramark's latest 2025Q2 earnings call.



Revenue Growth and Strong Retention Rates:
- Aramark's organic revenue grew by 3% to $4.3 billion in Q2, with strong retention rates of 98% in both FSS US and international business.
- The growth was driven by a strong retention rate, monthly acceleration of revenue growth, and new client wins totaling $760 million.

International Segment Performance:
- Aramark's international organic revenue increased by 10% year-over-year.
- This growth was supported by a significant focus on providing a superior overall experience to clients, leveraging local expertise, and winning new sports and leisure business contracts.

Supply Chain and Cost Management:
- The company's supply chain efficiencies and cost discipline contributed to a 33 basis points increase in AOI margin.
- This was achieved by leveraging AI-driven technology for purchasing compliance and contract productivity.

Capital Allocation and Financial Flexibility:
- Aramark repurchased nearly 4 million shares or about $140 million since initiating the buyback program.
- The company extended debt maturities and refinanced several loans to enhance financial flexibility.