Aramark (ARMK) risk factors, 2024 10-K

Risks Related to Our Business

1. 01Unfavorable economic conditions have, and in the future could, adversely affect our results of operations and financial condition
2. 02Natural disasters, global calamities, climate change, political unrest, geopolitical conflicts, energy shortages, sports strikes and other adverse incidents beyond our control could adversely affect our revenue and operating results

Operational Risks

1. 03Our failure to retain our current clients, renew our existing client contracts on comparable terms and obtain new client contracts on expected terms could adversely affect our business
2. 04We may be adversely affected if clients reduce their outsourcing or use of preferred vendors
3. 05Competition in our industries could adversely affect our results of operations
4. 06Increased operating costs and obstacles to cost recovery due to the pricing and cancellation terms of our contracts may constrain our ability to make a profit
5. 07Our international business faces risks that could have an effect on our results of operations and financial condition
6. 08Local labor and employment laws in countries outside of the United States can make it more difficult and costly to reduce labor costs in connection with decreases in demand for our services
7. 09Risks associated with suppliers, service providers and subcontractors could adversely affect our results of operations
8. 10We rely on large food service distribution companies to distribute our food and non-food products and a disruption in our relationship with them or their business could result in short-term disruptions to our operations and cost structure
9. 11Our business is contract intensive and may lead to client disputes
10. 12Our business may suffer if we lose key management personnel, are unable to hire and retain sufficient qualified personnel or if labor costs increase
11. 13We may fail to realize the anticipated benefits of acquisitions and joint ventures or successfully integrate the operations of the companies we acquire
12. 14We face risks associated with the recently completed spin-off of our Uniform segment
13. 15Continued or further unionization of our workforce may increase our costs and work stoppages could damage our business
14. 16We may incur significant liability as a result of our participation in multiemployer defined benefit pension plans

Legal, Regulatory, Safety and Security Risks

1. 17Laws and governmental regulations relating to food and beverages may subject us to significant liability and reputational harm
2. 18If we fail to comply with requirements imposed by applicable law or other governmental regulations, we could become subject to lawsuits, investigations and other liabilities and restrictions on our operations that could significantly and adversely affect our business
3. 19Changes in, new interpretations of or changes in the enforcement of the governmental regulatory framework may affect our contracts and contract terms and may reduce our revenue or profits
4. 20A failure to maintain food safety throughout our supply chain and food-borne illness concerns, and risks relating to allergens, may result in reputational harm and claims of illness or injury that could adversely affect us
5. 21Increases or changes in income tax rates or laws of tax matters could adversely impact our financial results
6. 22Our commitments and stakeholder expectations relating to ESG considerations may expose us to liabilities, increased costs, reputational harm and other adverse effects on our business
7. 23Our operations and reputation may be adversely affected by disruptions to or breaches of our information systems or if our data is otherwise compromised
8. 24The rapid development and integration of artificial intelligence ("AI") technologies into our processes presents several risks to our business
9. 25Environmental requirements may subject us to significant liability and limit our ability to grow

Risks Related to Our Indebtedness

1. 26Our leverage could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industries, expose us to interest rate risk to the extent of our variable rate debt and prevent us from meeting our obligations
2. 27Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly and potentially limit our ability to effectively refinance our indebtedness as it matures
3. 28If our financial performance were to deteriorate, we may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful
4. 29Our debt agreements contain restrictions that limit our flexibility in operating our business
5. 30There can be no assurance that we will continue to pay dividends on our common stock and our indebtedness could limit our ability to pay dividends on our common stock

Risks Related to Ownership of Our Common Stock and Provisions in our Organizational Documents

1. 31Our share price may change significantly, and you may not be able to resell shares of our common stock at or above the price you paid or at all, and you could lose all or part of your investment as a result
2. 32Anti-takeover provisions in our organizational documents could delay or prevent a change of control
3. 33These anti-takeover provisions could make it more difficult for a third party to acquire us, even if the third party's offer may be considered beneficial by many of our stockholders. As a result, our stockholders may be limited in their ability to obtain a premium for their shares