Aramark (NYSE:ARMK) Q2 2024 Earnings Call Transcript

Jim Tarangelo: Yes. So again, we haven’t baked in any benefit from inflation moderating or inflation tailwinds for our full year guidance, we assumed inflation is at similar levels as they are with — as they were for the second quarter for the remainder of the year.

Josh Chan: Okay. And then I guess in terms of just the core margin improvement, could you talk about your confidence in that sustaining beyond 2024 based on the initiatives that you have to drive improvement? Thank you.

Jim Tarangelo: Yes. Given the traction that we have, we’re very comfortable that the model is working and the levers that are driving the margin improvement will continue on into 2025 and 2026 with respect to improved efficiencies and scale in our supply chain. The commentary I made with respect to SG&A that will be similar as we plan for the next couple of years as well. And then again, the middle of the P&L, the trends that we are seeing, I think will give us some momentum and tailwinds into 2025 as well.

John Zillmer: Yes. And I would just add just one. Terrific. I’ll just add one final comment. No, that’s all right. As Jim indicated, we feel very good about the middle of the P&L management, the operating team doing a great job of focusing on delivering efficiency and services to our customers. And that’s — and ultimately, that’s the best test of an organization. Can you manage the business effectively and deliver on the results that your clients expect? And we feel very good about our ability to do that and our ability to go ahead and impact the business in a meaningful way. So with that, I’d like to thank all of you for the time that you spent with us this morning. Really appreciate it. Feel good about the quarter and we will continue to update you through the balance of this year as we achieve great results. So thank you very much.

Operator: Thank you for participating. This concludes today’s conference. You may now disconnect.