Good morning and welcome to Aramark's Second Quarter 2016 Earnings Results Conference Call. At this time, I'd like to inform you that this conference is being recorded for rebroadcast and that all participants are in a listen-only mode. We will open the conference call for questions at the conclusion of the company's prepared remarks. In order to accommodate all participants in the question queue, please initially limit yourself to one question and one follow-up. I will now turn the call over to Ian Bailey, Vice President of Investor Relations. Mr. Bailey, please proceed.

Thank you, Jameson, and welcome to Aramark's conference call to review operating results for the second quarter of 2016. Here with me today are Eric Foss, our Chairman, President and Chief Executive Officer; and Steve Bramlage, our Executive Vice President and Chief Financial Officer. I would like to remind you that our notice regarding forward-looking statements is included in our press release this morning, which can be found on our website, www.aramark.com and is detailed on page two of our earnings slide deck. 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 Risk Factors, MD&A, and other sections of our SEC filings. Additionally, we will be discussing certain non-GAAP financial measures. A reconciliation of these items to U.S. GAAP can be found in this morning's press release as well. With that, I'll turn the call over to Eric. Eric? Eric J. Foss - Chairman, President & Chief Executive Officer: Thank you, Ian, and good morning, everyone. I'm pleased to report another solid quarter, which, as you saw in this morning's release, keeps our outlook for the year unchanged. Strong end market execution of our strategy is delivering balanced and broad-based business momentum across the portfolio. In fact, both in-quarter and year-to-date, all of our segments are showing top line growth, margin expansion, and improved profitability. Our improved performance is also creating opportunity with regards to the strategic management of the business. Today's release includes some commentary on our acquisition of a small Irish specialty food company, Avoca, which brings a very strong European brand and new offerings to Aramark's portfolio. The release also includes references to our previously announced portfolio optimization efforts, including…

Your first question comes from the line of Gary Bisbee. Your line is open.

Hey, guys. Good morning. Eric J. Foss - Chairman, President & Chief Executive Officer: Hi. Good morning, Gary. Stephen P. Bramlage - Chief Financial Officer & Executive VP: Good morning, Gary.

I guess the first question – so on the North America food and support services, Easter you called out, but what else accounts for the sequential deceleration in the year-over-year growth rate? Is that just the normal ebb and flow of the business? It seemed like maybe it was a little more than that. Eric J. Foss - Chairman, President & Chief Executive Officer: Well, I think, Gary, if you look at our growth in North America in the quarter and year-to-date, I think we're seeing a pretty similar story develop, which is strong growth in sports and entertainment, education, leisure. And even our B&I business is experiencing some growth. The real pressure points in North America, I'd say, rest in, as Steve mentioned, as we've exited, in one instance, a large, high-profile corrections account, as well as a similar situation in healthcare. So I think, as is typical in this business, and you've heard me talk about how lumpy it is, while we feel good about where we stand, both in terms of new business pipeline in North America as well as some of the new business wins, the way in which we onboard that new business, the timing of that, I think, has been a little different than maybe we had anticipated. So, I'd say those are the real variables driving the North America business. Stephen P. Bramlage - Chief Financial Officer & Executive VP: Yeah. And, Gary, maybe I would just add, the seasonality of our business does matter in terms of the percentage changes right around the sequential, so. But the dollar impact of things like the portfolio actions we've taken, as well as the energy headwind, is roughly comparable to the first quarter and second quarter, but the revenue base that it's applied against is going to be much smaller in the second quarter just because of seasonality. So you end up with more of a percentage change just because the base is a little bit different in size.

Okay. That makes sense. And then the follow-up, just more broadly, as we think about it, so you gave us the adjustments, and I appreciate that, and adding those all back, 3% or so. But I guess when I step back, that's still the low end of your range. That's quite a bit below what Compass is doing, and how do you think about what it's going to take to maybe get to the midpoint of your range over time? Is Yosemite coming in enough, or are there some other levers you need to pull here to be growing more to the mid or upper end at some point of the long-term range? Thank you. Eric J. Foss - Chairman, President & Chief Executive Officer: Sure. Well, I don't think anything has changed, Gary, relative to the 3% to 5% framework. The multi-year framework, I think, remains very much intact from our perspective. Again, the good news is, is I think we're seeing growth across all reportable segments. There is no debating in 2016 that we're going to encounter some of this headwind both from a portfolio action and energy perspective. But as we look at the business, again, the drivers of this business are retention that stays fairly steady at that mid-90% range. That's factual. Our base business is actually performing well, which basically puts you back on the new business question. And I think the new business pipeline looks good. As I mentioned in my comments, we expect to book north of $1 billion in new business this year. But it's really the onboarding of that new business that creates the lumpy quarter-to-quarter optics that we deal with. So I think as we look long term, we're going to play our game. Again, we're confident in the algorithm of 3% to 5%. Having said that, we're going to run this business for the long term. And where we see and have opportunities to take corrective actions against the margin and return stream that we talked about at Investor Day, we're going to pursue it.

Great. That's helpful. Thank you.

Your next question comes from the line of Denny Galindo. Your line is open. Denny L. Galindo - Morgan Stanley & Co. LLC: Hi, there. Good morning. Thanks for taking my questions. I wanted to delve into the education since we're in a season where you have a lot of wins. You called out three wins; you didn't call out any number of losses. But I wanted to see if you could give any more color on the Toronto loss? It seemed unusual because they were moving from outsourcing to self-operated, whereas I kind of had a feeling that generally it's a one-way street. Once they go to outsourcing maybe it shifts between the players from time to time, but it's unusual for it to go away from outsourcing. And then we were estimating this might be like a $0.02 impact in 2017. Just maybe if you could give us any color there that would be helpful as well. Eric J. Foss - Chairman, President & Chief Executive Officer: Sure. Well, I think a couple of things. I think, first of all, Denny, I'm not going to talk about any specific clients, but what I would say is there is an industry dynamic where in some instances business will convert from competitor to competitor or in some instances it will convert from outsource back to in-source. So it's not a unique to a particular client phenomenon that in fact does take place. Again, as I said in our opening comments here, our education business continues to perform very, very well through second quarter, through the first half of the year and certainly as we look to the four education clients that I highlighted. As we onboard those in September, we'd expect to continue to see that education business perform like…

Your next question comes from the line of Andrew Steinerman. Your line is open.

Hi. Could you talk a little bit about Support Services and how is that doing? And are you getting some of those margin enhancements out of Support Services, or is most of the margin enhancement coming from the Food Services side of the business? Stephen P. Bramlage - Chief Financial Officer & Executive VP: Hey. Good morning, Andrew. This is Steve. Just to make sure I understand, when you're talking Support Services, you're specifically talking about what we would call facilities as opposed to food? I want to make sure I answer it correctly.

Yes, yes. Facility Services, Support Services. Stephen P. Bramlage - Chief Financial Officer & Executive VP: I think our progress, I wouldn't differentiate significantly the margin progress we're making across food or facilities. Obviously food per se is not a lever on the facility side. It is much more around labor management. But we're also much further along in the rollout of our primary labor management tool, which is the Kronos tool. So I don't believe there's a significant difference in the cadence around progress in either one of those two sectors.

Thanks. Eric J. Foss - Chairman, President & Chief Executive Officer: Yes. The only thing I would add, Andrew, is if you think about it, the framework is the same. What we're trying to do is to improve head count productivity across any of our lines of business, whether it's food, facilities, uniforms, healthcare technology. And the way we do that is to drive a real aggressive management approach to the management of our labor as well as in the case of facilities the same thing apply to the materials we purchase just like we would on the food side. So I think this margin march, the way you should think about it is it's very broad based across lines of business, almost it's virtually every line of business and every geography. It's very, very consistent across the company.

Okay. Thank you.

Your next question comes from the line of Stephen Grambling. Your line is open. Stephen Grambling - Goldman Sachs & Co.: Hey. Thanks for taking the question. Good morning. Stephen P. Bramlage - Chief Financial Officer & Executive VP: Good morning. Good morning, Steve. Eric J. Foss - Chairman, President & Chief Executive Officer: Good morning. Stephen Grambling - Goldman Sachs & Co.: As you think about Micros rollout and pricing strategies, are already able to start testing some of those pricing tools, or do you have to wait until you get critical mass? Eric J. Foss - Chairman, President & Chief Executive Officer: Well, anything that we would apply to Micros, we would be in pilot. So I think I mentioned earlier, we were about 20% or so on the Micros rollout. So we certainly are piloting things, Stephen. But in terms of the broad-based rollout, again, as I mentioned before, our pricing initiatives and strategies are very much in the formative phases. So the deployment of those will largely take place as we go forward. We're right now purely in pilot, and again, that's evidenced by the fact that the Micros rollout is pretty limited in terms of its current deployment. Stephen Grambling - Goldman Sachs & Co.: And then on margin expansion more broadly, I think at the beginning of the year you had always anticipated a bit more flow-through in the back-half relative to the first half. It seems like you've exceeded that so far in the first half and yet you're still reinvesting a consistent 50%. As you look into the second half, does that mean that you're going to be increasing the reinvestment based on where base margins have been? Eric J. Foss - Chairman, President & Chief Executive Officer: No, I don't think…

Your next question comes from the line of Anj Singh. Your line is now open. Anjaneya K. Singh - Credit Suisse Securities (USA) LLC (Broker): Hi. Good morning. Thanks for taking my questions. Stephen P. Bramlage - Chief Financial Officer & Executive VP: Good morning. Anjaneya K. Singh - Credit Suisse Securities (USA) LLC (Broker): My first one, a question as it relates to your education business, but interested in how it relates to your overall business also. You've had some notable gains and losses of education contracts, either replacing a long time incumbent or being displaced after a long time of incumbency. Could you talk about some of the factors involved in protecting and poaching such long-term relationships? Eric J. Foss - Chairman, President & Chief Executive Officer: Sure. I would say, as you look at this business and I'd say this applies not purely just to education, but to most of our lines of business. The three reasons why we win or the three reasons why we might lose an account really come back to the following; are we providing real meaningful innovation for the client and the consumer? Second, are we providing a consistently great customer experience at the moment of truth? And third, do we have the right team on the ground? And if we win new business, typically it's because we've demonstrated an ability to do that, and we'll have the potential client tour existing clients and be able to see and touch and feel that. And if we find ourselves in a tough retention situation, it's usually for one of those three variables as well. Having said that, I just want to come back to the fact that we expect our education retention rates this year to once again be in the high-90%s. So,…

Your next question comes from the line of Sara Gubins. Your line is open.

Thank you. As you're focusing both on revenue growth and margin expansion at the same time, do you see more contracts like Michigan and the healthcare one that you mentioned that might be low margin that you would consider exiting to help with the overall margin profile? Eric J. Foss - Chairman, President & Chief Executive Officer: Hi, Sara. It's Eric. Yes, I think one of the things that I think we talked a little bit about at Investor Day is, we're going to apply a very disciplined screen as we go forward around returns and margins. And so, that really results in a couple of applications. One is we will look where we have select smaller geographies, where we've been in the country and haven't been able to make inroads to the level of profitability and return that we want and/or at the account level where after some period of time, we haven't been able to maybe implement some of the things we agreed to in the contract or the pace of play on some of the things that were originally part of the pro forma are not playing out. We're going to be proactive in having those conversations and in making those decisions. So I do think that while they'll be fairly limited over time, I do think that it's a discipline and a screen that we feel is important to run the business for the long term in terms of shareholder value creation.

Okay. Great. And then could you give us some more color on the onboarding being different from what you thought for some of the new business? I know there were issues last year around start-ups; is this something similar or is it different? Eric J. Foss - Chairman, President & Chief Executive Officer: Well, again, I think, if you're talking about Yosemite which is the big one we onboarded in the quarter, I mean, first of all, this is a big honor for us to be chosen. The team just really worked seamlessly during that onboarding process, and we continue to manage that transition. But for the most part because we were able to transfer the employee base, that makes the degree of difficulty for some of these openings a little bit easier. And I think that, combined with a very aggressive plan that Bruce Fears and our Leisure team had has made that go exceedingly well. And so I think as we look at this, one of the things that we're spending a lot of time on across all of our lines of business is the whole concept of mobilization in start-ups. And so I'd say the answer to the Yosemite question is it was a very successful transition, very seamless. And I'd say, going forward, I think we've got a much more comprehensive plan as a result of some of our learnings the last few years to make sure we get businesses started up across various lines of business in a more proactive and effective fashion going forward.

Okay. Thank you.

Your next question comes from the line of Andy Wittmann. Your line is open. Andrew John Wittmann - Robert W. Baird & Co., Inc. (Broker): Hi. Great. Guys, the margin gains were in line with the plan. I'm curious as to what the start-up costs for Yosemite and for the California uniform realignment were in the quarter, just so we can get a sense of maybe what was really underlying this quarter. Stephen P. Bramlage - Chief Financial Officer & Executive VP: Yeah. I'll make a brief comment on that, Andy. I think in the case of Yosemite, several million dollars was I think the bottom line impact for us to the negative in terms of investment on start-up costs. We had about a month of revenue based on the start-up date, and obviously we're – or a couple of months of revenue, and we were fully staffed and invested going into the quarter. And so that drag will improve as the year plays out, and we will certainly be profitable on a full-year basis by the time we get to the end of the year. And then on the uniform side, I think the easiest thing to do, they obviously had a rough first quarter based on their kind of historical performance in terms of just profitability on a year-over-year basis. And almost all of that underperformance versus their historical average I think you can attribute directly to the expansion project that we were doing on the West Coast. So, I think that's the easiest way to quantify that for that line of business. Eric J. Foss - Chairman, President & Chief Executive Officer: And, Andy, the only thing I would add, if you want to tick and tie your math to the 60 basis point of margin improvement,…

Your next question comes from the line of Dan Dolev. Your line is open.

Question, as I look at Compass and I look at the organic growth which is about on a 1H basis about four times faster than yours. Is there anything that they're doing that you are not doing right now that you could be doing, is it end markets, is it being more aggressive on any of those markets? Thank you. Eric J. Foss - Chairman, President & Chief Executive Officer: Sure, Dan. I'd say a couple of things. First of all, we look at our growth versus competition. I think, if you look at it over time, for us it's important to make sure our growth is in line and ahead of the industry. If you look at the last couple of years versus the competitor you mentioned, I think in 2014 we grew faster. I think last year they grew faster than us. So as you look across the globe and dig a little deeper, there will be geographies where we've grown faster each of the last several years, and international business is one of those. There'll be markets where they've grown faster. If you look at the North America breakdown, there are a couple of spaces where they play that we don't. One is in the GPO space, the other is the elder care space. But I would say again, we are at very different phases relative to our strategic focus. And as I've mentioned earlier, ours is going to apply a very strong return and margin filter. So, as we make any decision, we are going to have that top of mind in this organization, make sure our orientation is around profitable growth. And again, that's translating into us doing a few things I think that might be different just based on where each of the separate companies are in their evolution. So, at the end of the day, I'm not going to obsess about any individual competitor. Our approach is to play our game, and we have continued confidence in our ability to grow this business and create shareholder value going forward.

Got it. And then the follow-up on the EPS guidance. So, you saw $0.05 of FX headwind in February. Now, it's $0.04. Why not just let that $0.01 flow through to the guidance? Thank you. Stephen P. Bramlage - Chief Financial Officer & Executive VP: I don't think we're that good to be that precise is my answer, right? So the currency today is different from the currency of last week. In general, it's consistently – it has moved consistently enough in terms of the dollar, weakening a little bit that I don't think we will have the headwinds in total, but we obviously provide a range for the year and don't give specific within that range back to I'd point you to Eric's broader comments around lumpiness across the business in general, et cetera. That's probably about as much as we can give you on that one.

Okay. Understood. Thanks a lot.

Your next question comes from the line of Carla Casella. Your line is open.

Hi. I wondered if you could give us some more thoughts on the cap structure. I know when you had spoken at our conference, you had mentioned potentially converting more of your term loans into longer-term bonds, less secured structure. Any thoughts on potential or timing there? Stephen P. Bramlage - Chief Financial Officer & Executive VP: Yeah. Just consistent with what I've said in the prepared remarks, we're certainly constantly watching it. I don't think our longer-term objectives have changed. I think, it is safe to assume we will gradually move away from the secured – a very heavy secured structure and take on more unsecured as the opportunity presents itself. That's obviously a term loan to bond kind of a trade over time. And so the market conditions remain, of course, pretty good by historical standards. And so we'll try to be opportunistic in pursuing something when we think it makes the most sense for us as we balance other considerations. But our longer term objective has not changed, and you should expect us to continue to take incremental steps periodically to move in that direction well in advance of any maturities that are coming towards us.

Okay. And then what about these – you've got one bond that's callable now. Any thoughts on what the transaction could include, looking at refinancing those, or is that longer term on your priorities? Stephen P. Bramlage - Chief Financial Officer & Executive VP: We look at all of our outstanding maturities. So obviously, we have to jump over some term loan debt to get to the callable bonds. And the term loans, of course, we can take out with no penalty. So, you have to get beyond that. But we look at the math all the time. Obviously, the call will also step down again in the future. So those economics change, but we look at that as part of the broader what's the right financial and financial flexibility answer for us.

Okay. Great. Thank you.

There are no further questions. I'll turn the call back over to presenters. Eric J. Foss - Chairman, President & Chief Executive Officer: Thank you, Megan. And, again, thanks to everybody for joining us. The year is off to a good start, and we continue to have confidence in the road that lies ahead. So, we thank you for your time, your interest and your investment in Aramark, and look forward to talking to you at the end of the third quarter. Thank you.

And we'll clear the way.

This concludes today's conference call. You may now disconnect.