Aramark Holdings Inc. reported a 28-percent increase in adjusted net income in the first quarter ended April 3 due to a combination of higher sales and productivity.
The Philadelphia-based foodservice contractor said net income adjusted to exclude one-time gains was $91 million, or 37 cents per share, during the quarter, compared with adjusted net income of $71 million, or 29 cents per share, the previous year.
Total revenue rose 2.6 percent, to $3.6 billion, from $3.5 billion in the same quarter a year ago.
Foodservice sales in North America, where the company operates cafeterias and food courts for schools, businesses and other organizations, rose 6 percent, to $2.5 billion. Sales rose 7 percent, excluding a calendar shift.
“In the second quarter, we delivered strong sales growth and financial performance across our portfolio,” Aramark CEO Eric Foss said in a statement. “We simultaneously drove greater efficiency and productivity while investing in talent, branding and technology. We remain confident in the fundamental strength of our business, which we continue to leverage through the execution of a clear and focused strategy to create long-term shareholder value.”
Operating income was $154.8 million, rising from $120.8 million in the same period a year ago. The company said productivity in both food and labor costs boosted profit, but were partially offset by higher costs related to startup accounts, as well as investments.
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