Keeping employees fed and clothed is one mark of this company. ARAMARK is the world's #3 contract foodservice provider (behind Compass Group and Sodexo) and the #2 uniform supplier (behind Cintas) in the US. It offers corporate dining services and operates concessions at many sports arenas and other entertainment venues, while its ARAMARK Refreshment Services unit is a leading provider of vending and beverage services. The firm also provides facilities management services. Through ARAMARK Uniform and Career Apparel, the company supplies uniforms for healthcare, public safety, and technology workers. Founded in 1959, ARAMARK became a public company again in 2013.
ARAMARK has operations throughout the US and nearly 20 other countries. International markets account for about 20% of the company's revenue. The company has a diverse customer base, serving customers in 45 states, Puerto Rico, and one Canadian province from more than 200 service location and distribution centers across the US and one service center in Ontario, Canada.
Sales and Marketing
ARAMARK serves businesses of all sizes in many different industries. Like its outsourcing rivals, ARAMARK competes primarily through bids to provide services to specific clients. It is generally engaged through long-term contracts that are renewed on a periodic basis. Most of ARAMARK's contracts allow the company to retain all revenue from its operations while paying a commission to the client; it also works under management-fee arrangements under which clients bear some of the financial risk for expenses. In addition, the company's uniform and apparel division also sells products (outerwear, safety gear, work wear) directly to customers.
ARAMARK's revenue was $14.41 billion in fiscal 2016. That was an increase of $86.7 million (or 1%) compared to fiscal 2015. The increase was attributed to growth in the company's Sports, Leisure & Corrections and Education sectors; growth in Ireland, Spain, China and Mexico; and growth in ARAMARK's Uniform segment.
ARAMARK's net income was $287.8 million in fiscal 2016. That was an increase of $52 million (or 22%) compared to the previous fiscal period. The spike in net income was directly related to the company's increased revenue in fiscal 2016 compared to fiscal 2015.
The company's cash provided from operating activities increased by 18% in fiscal 2016 compared to fiscal 2015.
ARAMARK decided to exit certain operations within its international foodservices segment during fiscal 2016. During fiscal 2015, the company completed the sale of its Aramark India Private Limited. In the past the company has used acquisitions and partnership agreements to grow its business.
Mergers and Acquisitions
During fiscal 2016 ARAMARK completed the purchase of Avoca Handweavers Limited, an Irish retail and cafe business, for approximately $65.8 million.