Aramark Serves up 14 Percent Reduction in Sodium; Posts Q4 and Fiscal 2017 Results

06:14 11/20/2017

Aramark ARMK , the largest U.S. food service company serving two billion meals each year and the American Heart Association, the world’s leading voluntary organization dedicated to building healthier lives, free of cardiovascular diseases and stroke, report significant strides in delivering healthier options across the menus served to millions in colleges and universities, hospital cafes and workplace locations.

Recently released blood pressure guidelines from the American Heart Association suggest that 46 percent of Americans will now be diagnosed with high blood pressure; sodium intake remains a key risk factor for developing high blood pressure.

ARMK  and the Association report that in the second year of their collaboration they’ve achieved a 14 percent average reduction in sodium, a 15 percent reduction in saturated fat, an 11 percent reduction in calories plus significant increases in fruits, vegetables and whole grains on the menus.

“To drive significant health impact and save lives we must think differently, and more systemically, about how we reach the most people where they are to positively influence their food choices,” said Nancy Brown, CEO of the American Heart Association. “Our work with Aramark delivers on that ability and accelerates progress both from the meals they serve every day to the communities where they do business – and that’s a powerful combination.”

The year-2 health impact results released by the Association and Aramark are on track with their joint Healthy for Life 20 By 20 goal to improve the health of Americans by 2020. The five-year initiative not only includes decreasing calories, saturated fat and sodium by 20 percent and increasing fruits, vegetables and whole grains by 20 percent, but also includes inspiring healthier consumer choice, supporting underserved communities and engaging 175,000 Aramark employees and AHA volunteers nationwide.

“Aramark continues to be encouraged by the meaningful reductions in sodium, calories and saturated fat we are achieving in our menus, as well as our efforts to support behavioral change in underserved communities and among our employees and the consumers we serve every day,” said Eric J. Foss, Aramark’s Chairman, President and Chief Executive Officer, and member of the American Heart Association’s CEO Roundtable.

This news comes on the heels of Aramark’s strong 4th quarter and full year fiscal 2017 results.

Consolidated revenues were $3.7 billion in the quarter, an organic increase of 2% over the prior-year period. Revenue growth was negatively impacted by an estimated $25 million from natural disasters in the quarter. The North America segment was positively impacted by growth across all sectors. The International segment continued to deliver strong, broad-based organic growth, while Uniform sales were up modestly as expected.

For Fiscal 2017, On a GAAP basis, sales were $14.6 billion, operating income was $808 million, net income attributable to Aramark stockholders was $374 million and diluted earnings per share were $1.49. This compares to fiscal 2016 where, on a GAAP basis, sales were $14.4 billion, operating income was $746 million, net income attributable to Aramark stockholders was $288 million and diluted earnings per share were $1.16. Full-year 2017 GAAP diluted earnings per share increased 28% year-over-year.

Adjusted net income was $489 million or $1.94 per share, versus adjusted net income of $425 million or $1.71 per share in fiscal 2016. A stronger U.S. dollar decreased sales by approximately $72 million, but had no material impact on operating income or earnings per share.

“Our solid operating performance in the fourth quarter led to another very successful year of double digit adjusted EPS growth in 2017,” said Eric J. Foss, Chairman, President and CEO. “We continue to execute well against our strategy centered on driving quality and innovation to constantly elevate the customer experience.”

"The combination of robust cash flows and disciplined financial management has significantly strengthened Aramark’s balance sheet, paving the way for us to make the strategically sound and financially compelling acquisitions of Avendra and AmeriPride that we announced last month," Foss continued. "We’re entering 2018 with solid momentum as we continue to focus on growth and shareholder value creation, consistent with our long-term framework.”

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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