Good morning, and welcome to Aramark's third quarter fiscal 2024 earnings results conference call. My name is Kevin, and I'll be your operator for today's call. At this time, I'd like to inform you this conference is being recorded for rebroadcast and that all participants are on a listen-only mode. We will open the conference call for questions at the conclusion of the company's remarks. I will now turn the call over to Felise Kissell, Senior Vice President, Investor Relations and Corporate Development. Ms. Kissell, please proceed. Thank you, and welcome to Aramark's third quarter fiscal 2024 earnings conference call and webcast. This morning, we'll be hearing from the company's Chief Executive Officer, John Zillmer, as well as Chief Financial Officer, Jim Tarangelo. As a reminder, our notice regarding forward-looking statements is included in our press release this morning, which can be found on our website. During this call, we will be making comments that are forward-looking. Actual results may differ materially from those expressed or implied as a result of various risks, uncertainties, and important factors, including those discussed in the Risk Factors, MD&A, and other sections of our annual report on Form 10-K and our other SEC filings. Additionally, we will be discussing certain non-GAAP financial measures. A reconciliation of these items to US GAAP can be found in this morning's press release as well as on our website. With that, I'll now turn the call over to John. Good morning, everyone. Thank you all for joining us today. We continue to successfully execute on our strategic vision. I'm pleased to report another strong quarter of results for Aramark, with record revenue and profitability for a third quarter in FSS US, as well as record international revenue and profitability for any quarter. Jim and I will review the key drivers for the outperformance before turning to our financial expectations for the fiscal year, with just one quarter to go. Given the substantial growth opportunities ahead and our proven ability to capitalize on them, we're confident that our business momentum will continue into next fiscal year and beyond. Aramark's third quarter revenue growth was broad-based, coming from virtually all lines of business and geographies. Revenue for the quarter was $4.4 billion, with organic growth up 11% year-over-year, once again led by base business growth from a mix of volume and pricing, as well as contributions from new client wins. The company's multiple operating levers allowed us to scale higher sales volume, manage costs effectively, and achieve supply chain efficiencies, all while benefiting from an inflation tailwind. Our actions contributed to a 22% increase in operating income compared to the prior year, and a 21% year-over-year increase in adjusted operating income on a constant currency basis. Aramark's performance is a testament to the extraordinary talent within this organization, which allows us to provide world-class hospitality services to clients while we focus on our ambitious path forward. Turning now to the business segments. FSS US grew organic revenue 9% versus the comparable period last year, led by continued record levels of per capita spending and greater event attendance in sports and entertainment, new wins coming on board in business and industry, meal plan initiatives in collegiate hospitality before entering the quieter summer season, and enhanced commissary services in corrections. We saw strength this quarter using our capabilities to deliver higher revenue volumes at prominent events, including professional golf tournaments such as the U.S. Open at Pinehurst and the Travelers Championship, in addition to serving over 300,000 fans at the Indianapolis 500. We also provided retail merchandise for the Philadelphia Phillies and the New York Mets, both Aramark clients, as they participated in Major League Baseball's London Series. The sales pipeline remains extremely strong across sectors, particularly in first-time outsourcing. New clients include the Tulsa Public Schools, our first entry into Oklahoma for student nutrition, Harding University, and the Southeast Georgia Health System, to name a few. We're in the process of finalizing some sizable new client opportunities, which we are targeting to close this fiscal year. As part of our ongoing efforts to offer a differentiated and innovative client experience, we just entered into a partnership with renowned Michelin-starred chef, Daniel Boulud, which will be focused first on expanding our B&I culinary capabilities in corporate catering, special events, conferences, and more. The collaboration will be branded Cuisine Boulud New York, with operations primarily from a centralized kitchen located in Manhattan, with services offered throughout the New York metropolitan area and beyond. Lastly, in FSS US, a few weeks back, we brought together the top 1,000 of our senior operating district, regional, and corporate leaders for ongoing leadership development training, educating teams on new initiatives, services, products, equipment, and technology through a partner sponsor expo, and celebrating excellence in our hospitality culture. This type of collaboration across lines of business and job function is a clear realization of our values and will help propel us into the future. Now to international. Momentum in the international segment continued with organic revenue increasing 16% year over year. All geographies in the portfolio experienced organic revenue growth led by the UK, Canada, and Spain, as well as Latin America, from net new business, base business volume, and pricing initiatives. Our teams were hard at work, which included successfully driving our increased presence in sports and entertainment, particularly in highly attended and globally, globally recognized events. In Germany, we served approximately 1.6 million visitors during the 2024 Men's European Football Championships, partnering with the majority of the stadiums in the tournament, which are Aramark clients, including for the final match in Berlin... and in Spain, we served over 280,000 fans for the Formula One Grand Prix multi-day race in Barcelona, and we are already working on plans in partnership with the rapidly growing Formula One for upcoming events this summer and into next season. We're thrilled to share that Aramark has been selected as Everton Football Club's official global food and experiences partner for the new Everton Stadium at Bramley-Moore Dock in Liverpool, England. The approximately 53,000-capacity stadium, which opens ahead of the 2025-2026 season, will be one of the most accessible and sustainable stadiums in Europe. This marks the company's first engagement in the English Premier League, and expands on our long-standing European sports and entertainment business with LaLiga in Spain and the Bundesliga in Germany. We also continue to build scale in other countries within industries we serve, with new client wins coming from mining in Chile, healthcare in China, and government-related services in Ireland. And finally, in international, we recently concluded our International Chefs' Cup in Toronto, Canada, which, after a year of in-country competition, recognized our global culinary talent and celebrated the winning chefs from each country. Our global supply chain team continues to effectively grow, leverage, and optimize Aramark's spend, which contributed to our strong performance in the quarter. By the end of this fiscal year, we expect our managed services, global supply chain, and GPO network spend to surpass $20 billion. We are pursuing GPO acquisition opportunities to complement the organic growth we are seeing, to drive even faster growth and enhance capabilities in key areas. International expansion is of particular interest if we find the right fit. Domestically, we are leveraging our expertise in hospitality to expand and more deeply penetrate adjacent industries, such as wellness and entertainment. On the inflation front, we're seeing continued improvement in North America, Europe, and Asia, while Latin America has been a bit stickier. In the third quarter, we reached the low end of the range we originally estimated and expect global inflation in the 3s for next quarter, as long as these favorable trends continue, with the U.S. already dropping into that range. As always, we're ensuring our supplier contracts are capturing any market opportunities, and we'll transition business appropriately to maximize these benefits. Lastly, we reached an agreement to sell the remaining portion of our ownership stake in the San Antonio Spurs NBA franchise. We anticipate the transaction will close in the fourth quarter, subject to NBA approval. We expect to use the proceeds for debt repayment as part of our deleveraging strategy. We continue to work closely with the Spurs as a valued client. Before turning the call over to Jim, I'd like to highlight a few key accomplishments and recognitions we received in the third quarter. First, we were named as one of the 50 most community-minded companies in the United States, often referred to as the Civic 50, by Points of Light, an organization dedicated to accelerating people-powered change. Second, Fair360 highlighted Aramark as a top employer for both diversity and Black executives, with 36% of our management racially and ethnically diverse, and 20% of the company's board members being women of color. Lastly, Aramark Canada was recognized as one of the country's greenest employers for 2024 by Mediacorp Canada, highlighting our ongoing commitment to sustainability and the innovative green practices now ingrained in our operations. We believe that the focus on our people and the communities we serve are a key differentiator for the company, which has led to tremendous outcomes. Jim? Thanks, John, and good morning, everyone. As John mentioned, we had another very strong quarter on both the top and bottom line across the business, with solid growth across nearly all sectors and geographies. We are excited about the many growth and operational efficiency opportunities ahead. In the third quarter, we reported revenue on a GAAP basis of $4.4 billion, up 8% compared to the prior year period, reflecting approximately $116 million of foreign currency translation. Organic revenue grew 11% versus the prior year, driven by increased business, business volume and the contribution from net new business, along with pricing. Operating income in the third quarter increased 22% year-over-year to $162 million, and adjusted operating income was up 21% on a constant currency basis from a year ago to $193 million. AOI margin grew nearly 40 basis points year-over-year on a constant currency basis, driven by those underlying operating levers so core to our model, including supply chain efficiencies, disciplined middle-of-the-P&L management, and progression of new business maturity, along with improving inflation trends. Turning to the business segments. FSS US achieved AOI growth of 14%, with an AOI margin improvement of 22 basis points, both on a constant currency basis compared to the same period last year. Note, there was some favorability in the prior year associated with insurance-related costs. If it wasn't for this item, the FSS US AOI margin improvement would have been comparable to last quarter. The international segment had year-over-year AOI growth of 41% and AOI margin improvement of 86 basis points, also on a constant currency basis. Year-over-year AOI expansion was driven by higher base business volume, net new business, and control of operational costs, particularly in food, labor, and overall SG&A, led by Spain, the UK, Ireland, and Latin America. Regarding inflation, trends continue to track favorably, which provided some tailwinds to our underlying margin levers in the third quarter. As John shared, we saw global inflation come in at the low end of our expected 4%-5% range, with the US even better. We are seeing overall inflation tracking in the 3% range or so for the fourth quarter, and if current trends continue, we expect inflation to come down even more heading into next fiscal year. Turning to the remainder of the income statement, interest expense decreased 27% year-over-year, primarily from the $1.5 billion debt repayment of the 2025 senior notes. The adjusted tax rate was approximately 26%. Our quarterly performance resulted in GAAP EPS of $0.22 and adjusted EPS of $0.31, an increase of over 50% versus the prior year on a constant currency basis. Regarding cash flow, net cash provided by operating activities was $141 million, and free cash flow was $62 million in the third quarter, an inflow consistent with our normal seasonal business cadence. Our free cash flow improved by almost $200 million from higher cash from operations and favorable working capital compared to the prior year. At quarter end, the company had over $1.1 billion in cash availability. Turning to the capital structure, we improved our leverage ratio another 50 basis points this quarter compared to the prior year period. This positive trend reflects our financial discipline as we remain focused on reaching 3.5x by the end of this fiscal year, and we are committed to continue reducing our leverage ratio. After quarter end, we also took steps to further strengthen our balance sheet and create additional financial flex, flexibility by extending the maturities of our revolving credit facility and Term A loan by 5 years. Part of this action also includes increasing our borrowing capacity under our revolving credit facility by $200 million to $1.4 billion. We will proactively pursue other opportunities to enhance our capital structure with a focus on optimal returns for shareholders. I'll wrap up with our outlook expectations for the remainder of this fiscal year. We are very pleased with our year-to-date performance as we continue to make great progress against our financial targets. As a result, we currently anticipate the following full-year performance: organic revenue growth at approximately 10%, AOI growth at approximately 20%, adjusted EPS growth at approximately 35%, and lastly, a leverage ratio at approximately 3.5 times with ongoing improvement. Our results reinforce our ability to execute on our focused strategies, which in turn, we expect will deliver significant shareholder value. Thank you for your time this morning, and with that, I'll turn it back to John. Thank you, Jim. We continue to work hard every day and are excited about the opportunities ahead to deliver for our stakeholders. We are exceeding the financial expectations we initially set for the fiscal year and remain confident in our strategic vision. Our talented teams across the globe embody our culture, performing at a high level and pursuing a path that will bring us to new levels of success. The operator will now open the call for questions. Thank you. We will now begin the question and answer session. If you have a question, please press star, then 1, 1 on your touch-tone phone. If you are using a speakerphone, you may need to pick up a handset first before pressing the numbers. In order to accommodate participants in the question queue, please limit yourself to one question and one follow-up. To remove yourself from the queue, please press star, then 1, 1 again. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Shlomo Rosenbaum of Stifel. Your line is open. Hi. Excuse me. Thank you very much for taking my questions. Hey, John, can you comment a little bit about the contracting in the higher education space? June is usually the most important quarter, and it runs kind of through July. Can you talk a little bit about the success the company had, whether it was in line with what you expected, how it sets you up for next year? And after that, I have one follow-up. Yes, we had a very strong selling season in higher education. We actually sold more new accounts this year than ever in our history, so we're feeling very good about the new sales growth. The contract negotiation process in terms of pricing for next year for board plans, you know, has gone very, very well, and so we feel very good about higher education's opportunities for next year and beyond. So yeah, all in all, a very good selling season. We obviously did have a couple of accounts that we transitioned this year. And so we're very focused on both the retention and new sales efforts in higher education and feel very strongly about that business's ability to perform at a high level. Great. And then, for Jim, just are we at a point that the new wins are not really gonna be something that we have to be concerned about them, impeding the operating margin expansion? Over the last, you know, several years, we had a situation where the new wins were something, as you ramped them, were headwinds to operating margin expansion, and we're starting to see margin expansion ahead of what was expected. Are we at that point where the maturing contracts are really just offsetting the new business ramps? Yeah, that's right. I mean, if you look, again, the year-to-date margin expansion at 60 basis points is very strong, right? And all those underlying margin levers are working. And one of those levers is the maturity of the new business profile. And at this point, given where we are, yeah, that should no longer be a significant headwind like it was prior to the new business ramp-up. Great. Thank you. ... Thanks, Shlomo. Our next question comes from Toni Kaplan with Morgan Stanley. Your line is open. Thanks so much. I wanted to ask about the international business, really strong quarter of growth again. Could you talk about any initiatives you've been implementing there that might have led to the success? And in prior quarters, you've attributed the momentum there to outsourcing, so I'm assuming that's still the case, but are there any particular geographies where you're seeing more of the move towards outsourcing? And is that being driven by sort of this lingering inflation or something else? And as inflation comes down, does that sort of change the dynamics going on? Thanks. Thanks, Toni. You know, frankly, we're seeing very broad-based success in international across all the geographies. I really couldn't point to a, to an area that where we're not enjoying that success in terms of the growth. I think part of it's just the longer-term discipline we've had in terms of growth for international. That team has been in place for a long time and is very disciplined and focused. And we continue to see great results across the portfolio and in virtually every country. You know, so I, you know, I think we have strong expectations for continued growth in that sector. Don't see any secular trends which would really impact it one way or another. Outsourcing activity still remains high, and the pipeline, the sales pipeline, is even more robust now than it's ever been. It's just, just an amazing thing. So we're very pleased with the overall results in international, and we expect that growth will continue. Terrific. And then just on the margin drivers, you mentioned on slide 8, and you've talked about in the prepared remarks, supply chain efficiencies. You've been sort of calling that out for a couple of quarters now. You know, maybe just talk about how much more is there to go with regard to additional margin expansion from supply chain or from the operating efficiencies that you've been seeing, that'd be helpful. Thank you. There's still significant opportunities ahead, right? With this growth-oriented model, the supply chain efficiencies are generating really nice margin accretion. We continue to see, you know, disciplined management of SG&A. The organization is fit for growth, so we're able to take on a lot more growth without adding much in the way of SG&A. You see that in our corporate results as well. And then finally, the middle of the P&L, I think as the operating environment continues to normalize, obviously staffing is more available now. We're seeing improvement in labor and food productivity, you know, without maintaining high quality service to our clients, with reduced agency and overtime, as an example. So that will continue to provide tailwinds into next year, and those margin levers will continue to be more pronounced. That's right. And Toni, that last factor on supply chain, obviously, we continue to focus on growing the GPO spend, both domestically and internationally, and the acceleration of that spend, you know, has significant efficiency benefits for us, both in terms of new contract development and overall rates, for the products that we buy. So, you know, we see that lever continuing to be a significant impact item going forward. Super. Thank you. Thank you. Our next question comes from Andrew Steinerman with J.P. Morgan. Your line is open. Hi. You know, the 10% organic revenue growth this year stands out to me as above industry growth. And I just wanted to know if you had a sense of what you think industry growth is for food services right now, and, you know, given, you know, what you see in the industry, not just Aramark's book of business, what do you think the growth prospects for food services industry growth is for the next couple of years? That's a great question, Andrew. I think, you know, first of all, we see all, all the competitors have experienced growth year-over-year. I do think ours is industry leading. I think that's a result of a number of different factors, based on the portfolio that we have and based on the success we've had in terms of both new account acquisition and base business improvements. So, I'm sure our competitors are also seeing similar opportunities, going forward. I think, you know, we've talked about a long-term growth rate for us, in the mid-single digits, you know, call it 7%, you know, going forward. And I would expect... I think the industry is probably growing at a rate that's slightly higher than inflation. So I think we'll all benefit going forward. It's a very disciplined industry. I think we're all focused on managing effectively for our clients. But we love our, we love our strategy and our portfolio, and we think it'll lead to significant growth going forward. Thanks, John. That's great. Thank you. Our next question comes from Ian Zaffino with Oppenheimer. Your line is open. Hi, great. Can you just talk maybe a little bit about kinda the pipeline and what's going on there a little bit deeper? I know you gave some color, but a little bit more maybe geography or kinda areas. And I guess I'm trying to key in on this Everton, which congratulations on getting. You know, are there other opportunities in that vertical as well, and in that country? Thanks. Yeah, there are definitely other opportunities in that vertical, both there and other and in other parts of the world. In fact, we're very close to closing on another opportunity that's both a retain and grow in that sector in the international segment. So, you know, we're very excited about the overall growth prospects of the sports and entertainment business. We're also enjoying very significant special event opportunities, concert seasons, you know, team performance has a big impact on the overall sales and revenue growth in sports and entertainment. So we're actually seeing very strong performance by our core teams that we serve around the world. So all in all, we're very pleased with it, and we see continued good opportunities going forward. Okay, thank you. And then can you maybe, I guess, since we're all talking about a recession now, re-remind us how, how the business performs, you know, your ability to kind of, reduce any type of impact of, of a recession and, you know, any other color you could give there? Thanks. Yeah, I think one of the hallmarks of this business is it stands up very well during recession. I mean, it's literally a business with over 10,000 profit centers and a diverse set of sectors across 15 countries. So there's a natural diversity to the business that stands up and is very resilient as the economy becomes more challenging. If you look back over, you know, 20 years, and you go back to the financial crisis in 2008, you know, again, the business fared very well with revenues just down a tad and margins relatively intact. So it's a good spot to be in when we're facing challenging economic times. Yeah, I would just add, we consider the business to be very recession resilient. I think, as Jim said, it's based on the strength and diversity of the portfolio and the businesses that we serve, and our ability to manage in a disciplined operating environment. The processes that we have in place, the systems and the technology that we have in place in terms of managing the middle of the P&L and for both food and labor, you know, really puts us in a very good position. You know, we manage this business literally on a weekly basis, so we can react and respond very rapidly to changing economic conditions. And we feel our people are very well equipped. and it's been demonstrated over, over many, many years that the, that the company, in particular, Aramark in particular, particularly the food part of the business, is very recession resilient. Okay. Thank you very much. Our next question comes from Heather Balsky with BofA. Your line is open. Hi, good morning. Thank you for taking my question. I was hoping you could talk a little bit more about your GPO. You, you talked about it surpassing $20 billion, and when you answered Tony's question, you talked about the, the margin opportunity there. Do you can you just talk about, you know, the, the pace of growth, growth you've been seeing, what's driven that, and the opportunities ahead? Do you have a target in terms of how big you think you can get it? You know, when you look at your peers, you know, I guess, how do you think about it from that perspective? Thanks. Yeah, certainly. It is obviously an area that we're very much focused on, and, beginning all the way back to the Avendra acquisition, you know, I think the company was embarking on a strategy, not only to create a good GPO and a good business model for Avendra, but also to create additional supply chain leverage that could be brought to bear against the contract business. So obviously, we're very focused on increasing the spend. We've got a very active sales process, and some very significant new client wins this year. We're also expanding our geographies, both domestically, through rounding out the portfolio of the services we offer and the industries that we approach, as I mentioned in the script, approaching hospitality and entertainment, or entertainment and wellness in a way that we haven't before. Think golf clubs and other related kinds of facilities, and as well as geographic expansion. We've had a very good success in growing the GPO business outside of the United States, and we have an opportunity to expand significantly with our core customers, both domestically and internationally. So we'll continue to build it. We're not gonna throw a number out there. I think, you know, frankly, we're just gonna try and build it as rapidly as we can because we see the benefits on both sides. We'll continue to give you more insight and more information as we establish strategy and the goals for next year. Great. That's, that's helpful. Also with regards to the question on, you know, potential risks or, or, or sort of managing the business through a downturn, I'm just curious, currently, you know, are you seeing anything in any of the segments of your business that point to softer demand from, from consumers? Any, any sort of change in trends? You know, I would say, no, we're not experiencing that in any significant way. I would say we're seeing very strong spending trends, particularly in sports and entertainment. We continue to have consumers who are willing to spend for the experience. You know, particularly in the businesses that we serve, they're event driven, and so people will continue to support their sports teams. Even in times of very significant recession in the past, attendance at stadiums was very, very strong because people would still make those kinds of expenditures. They may reduce the number of airline flights that they may take, but they continue to do activities that are closer to home. So our portfolio is specifically designed to capture that opportunity, and we feel very good about it. But to be very clear, we are not seeing any consumer-driven trends that lead us to believe that we're seeing a downturn in consumer spending in our core businesses. Thank you very much. Our next question comes from Neil Tyler with Redburn Atlantic. Your line is open. ... Hey, good morning, John, Jim, thank you very much. Just a couple, please. Going back to your new initiative in the US B&I business that you mentioned. I wonder if you could expand a little bit on how you see the addressable market in B&I, you know, potentially having changed, if it has at all, as a consequence of, I suppose things like sort of unattended vending. And the sort of model that, you know, you're describing through this new initiative using, you know, a single kitchen to serve lots of different customers, whether that, you know, brings down the bar, the commerciality bar for, you know, for the size of customer that's worth serving, and therefore, you know, whether that... You know, how that's changed the size of the market? Sorry, long-winded question. And then secondly, a simpler one, for Jim. You know, your guidance, you know, looks like it's at an operating, adjusted operating income level, implying sort of mid to high single-digit growth for the fourth quarter at constant currency. Is there anything in the comp? You mentioned a couple of things for Q3, anything in the comp base that we should bear in mind when we're considering the rate of year-on-year growth? Thank you. Yeah, so I'll start with that question. So that's right. The guide does imply sort of mid- to high-single digits for the fourth quarter. And again, that's a good cruising speed for this business. We've talked about the long-term growth model in the 5%-7% range, and that's enough growth to fuel those margin levers that we talked about. That's 2-3 times higher than where we were in the years leading up to fiscal 2019. Yeah, we are lapping some significant pricing actions as we come into Q4. As inflation moderates, you know, that the level of pricing will come down somewhat, but we're exiting the year at a very strong speed with good growth. Yeah, and I'll comment on the first operational issue. First of all, the marketplace that Cuisine Boulud is focused on is really the high-end catering opportunity. And so that is, it's not. We haven't established a central production facility in New York to go ahead and serve smaller facilities or the like. This is really focused on high-end opportunities for both catering and restaurant operations. So that's the model that it's focused on. The B&I segment continues to be very robust. We see continued growth and the opportunity to grow that business through the addition of new accounts. We've had a very strong selling season there. And each account may be slightly different than it used to be in 2019. Lower populations, but we're serving more, and the style of service has been altered to fit the population rates and the participation rates of those accounts. So overall, the B&I model is very robust. The small account model we serve through our refreshment services division, which is enjoying extraordinary growth through mini markets and our micro markets, vending services, office coffee services and the like, refreshments and snack services. So we do have a service offering that's focused on those smaller site solutions, if you will. But the specific cafe or Cuisine Boulud reference this morning was related really to high-end catering and the opportunity to really serve that marketplace in a new and differentiated way with one of the world's most foremost renowned Michelin-starred chefs. I understand. Thank you very much. Thank you. Our next question comes from Andrew Whitman with Baird. Your line is open. Yeah, great. Thanks for taking my question. So I guess you guys commented on inflation a couple of times and how it came in at the low end of your expectations for the quarter. There was even a comment in your prepared remarks talking about if it stays here, you'll get some benefit to 2025. So Jim, maybe I thought I'd give you an opportunity to expand a little bit about that. It sounds like that's your base case, that inflation's probably a little bit of a help for you, not only in the fourth quarter, but into next year. I was just wondering, when do you think the comps or the inflation comps get to a point where it's no longer a tailwind and any idea you could help us with in terms of the quantum of that? I know last quarter you said it was, you know, a defined basis points benefit to the result. I didn't know if you wanted to kind of talk about how it's been trending here for the end of 2024, but I think we could all benefit from a little bit more detail on that topic. Yeah, last quarter, we talked about expectation of inflation in the 4%-5% range, and it came in at the low end of that range for the third quarter globally. In the U.S., we were in the high 3s for the third quarter. As we're trending in the fourth quarter, we're now in the 3s across the organization, both in the U.S. and internationally. And we're obviously seeing favorable trends as we plan for fiscal 2025. It continued to be a moderate tailwind to the organization in Q3. I think we'll continue to be a moderate tailwind into Q4. We've talked about, you know, we don't price for profit, right? In the long run, price, pricing and inflation will sort of be neutral to the organization, but I think it will continue to provide a moderate tailwind over the next couple quarters. That's helpful. And then maybe, John, for my follow-up. I know that at the year-end, you always give the retention for the year, but I'm guessing you've got a pretty good sense of where it's falling in. You've talked a lot about net new. I was just wondering if you could just talk about the retention side of net new, how it fared in the quarter, and how you expect that to come in for the year. Yeah. I think we expect to be right on our historical averages, really nothing significant. And you're right, we will comment at the end of the year, you know, on our net new and overall retention in the business. But right now, we feel very good about the track we're on, and I would say historical averages are right in line with our expectation. Thank you very much. Thank you, Andrew. Our next question comes from Jasper Bibb with Truist Securities. Your line is open. Hey, good morning, everyone. You reiterated the leverage target for this year. Seems like next year is set up pretty well, too. And just any updated thoughts on when it might be appropriate for the company to increase capital return in light of the improving balance sheet? So we have a clear line of sight at this point to about 3.5x by the end of this fiscal year. That will represent the lowest leverage this organization has since the 2017, 2018 period. As we plan for fiscal 2025, you know, there's a path to leverage in the 3s, low 3s, which again, will be the lowest we've had, I think, going back to the LBO in 2007. We have had discussions already at the board level with respect to potential a share repurchase program, and we're expect to give you another update at the next earnings call on that. But, yeah, with the leverage ratios tracking favorably, that's something we are strongly considering. Yeah, the board continues to recognize our strong free cash flow recognition, or, recognition and, generation. And, you know, it has, it has had discussions around, you know, how do we optimize shareholder returns? And so, and it is strongly considering, what that approach should look like. And as Jim said, we will, update you at the next earnings call in terms of our intentions and plans for that. Thanks. And then, I know you're not guiding for fiscal 2025 today, but wanted to take your temperature on how you're feeling in terms of your annual net new contribution and retention targets for next year based on what you see, and I guess the sales pipeline today and some of your existing client conversations? So, yeah, the sales pipeline remains very robust, you know, and as we plan for fiscal 2025, we've already, you know, we remain committed to our AOI target of about $1 billion. What we talked about previously, exiting the year in the mid- to high-single digits in terms of revenue. So, you know, we have a lot of confidence in the multi-year targets that we establish, and remain committed to achieving those targets, and we see good momentum in the business to get there. Makes sense. Thanks for taking the questions, guys. Thank you. Our next question comes from Joshua Chan with UBS. Your line is open. Hi, John, Jim. Thanks for taking my questions. I think, Jim, you mentioned that the US margin was held back a little by some favorabilities last year, and that excluding those, the margin improvement would be similar to last quarter. So I guess, is the last quarter's margin improvement rate the right rate to think about going forward? How should we think about kind of the US margin improvement, given some of your productivity and internal actions? Yeah, the underlying margin improvement in both the U.S. and international remains strong, right? So in the, you know, 50-60 basis points. So I know that the insurance, you know, comparability, we had some favorable insurance experience in the prior Q3. Coming out of COVID, there was just simply less activity and less liabilities required there with some actuary true-up work that occurred. So we're now in a more normalized run rate with respect to insurance, but the underlying margin improvement remains consistent and strong, and we'd expect the same for Q4 as well. All right. Perfect. Thank you for that. And then, on your comment about inflation possibly being lower for next year, is that mainly a labor comment instead of food comment? Could you just kind of break down the different components that lead you to believe that you'll have lower inflation in the next year? And thank you so much. Yeah, well, we have very, you know, detailed information, obviously, building up our food inflation and labor. Both of them are trending favorably. I think labor overall is still low. We talked about 4%-5% range. Labor is trending closer to 4%. At this point, we have good visibility with respect to the inflation outlook for food. And just the trends that we're seeing give us a lot of confidence, and that will continue to come down as we enter fiscal 2025. Great. Thank you for the color, and, congrats on a good quarter. Thanks. Thank you. Our next question comes from Stephanie Moore with Jefferies. Your line is open. Hello, this is Harold Antor for Stephanie Moore. You know, wanted to key in on the GPO space. It sounds like you are, you know, considering some acquisitions. So just any particular geographies where you see the most opportunity that you would like to acquire to grow in that space? Yeah, we're specifically focused on the European marketplace, where we already have existing GPO infrastructure, and adding scale to that is very, you know, enhancing both margins and our ability to serve our customers well. You know, some of those acquisitions are multi-geography. They have the ability to impact our operations, not only in Europe, but in Latin America as well. And we're also focused on doing work with our current partners in other parts of the world, where we've got pilots underway... you know, to establish GPO networks in markets where they've never had a GPO. So overall, the opportunity is significant. We're, you know, very focused on it. I wanna make sure that people understand we are not looking at a material investment strategy for the GPOs. This is really bolt-on kind of additions to the organization that will have an outsized impact based on our ability to capture both the spend and the capabilities in certain markets. So, that's, that's our approach and strategy. Got it. And then, just on, you know, some of the other levers on the margin. I know you said, I think insurance costs were favorable. Should we expect this to impact margin favorably in Q4 as well? And then on corporate costs, you know, how should we think about that in 2025? Is the 2024 rate the run rate we should expect, and I guess how much more room is there to run there? Could you repeat the first part of your question? We just had a little trouble hearing you. I said insurance costs. Yes - benefit to... So I just wanted to get a sense for how we should think about that in Q4 as well. And then on corporate costs, you know, when we think about 2025, is the rates that we're seeing in 2024 the new run rate, and I guess how much more room is there to run? Understood. as well. Yeah, just to confirm, the insurance costs or savings was a benefit in Q3 of 2023. So we're just pointing out that we were lapping a period of unusually low insurance costs, so the insurance run rate is now normal, so it would neither be a headwind or a tailwind to the margin going forward. With respect to corporate costs, yeah, I think we're just planning sort of a moderate increase overall. We target corporate costs growing at about half the rate of our revenue growth. So the 2%-3% range is what you can model for fiscal 2025. Thank you. I'm not showing any further questions at this time. I'll now turn the call back over to Mr. Zillmer for any closing remarks. Terrific. Thank you very much, and thank you, everybody, for your questions and for the support of the organization. We feel very good about our third quarter results. The opportunities ahead for the organization are bright, and I want to thank all the Aramark employees around the world for their diligence, hard work, and their continued dedication to the growth of this company. So again, thank you very much, and enjoy the rest of the day. Thank you for participating. This concludes today's conference. You may now disconnect and have a wonderful day.