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Two years ago @SavneetS was appointed CEO at $PAR
Shares are up nearly 3x since (70%+ CAGR)
Savneet is on track to create more shareholder value in his first 3 yrs on the job than shareholders earned in the 30 yrs prior to his arrival.
My quick take: https://www.partech.com/news/par-technology-corporation-announces-ceo-transition/
Shares are up nearly 3x since (70%+ CAGR)
Savneet is on track to create more shareholder value in his first 3 yrs on the job than shareholders earned in the 30 yrs prior to his arrival.
My quick take: https://www.partech.com/news/par-technology-corporation-announces-ceo-transition/
$PAR is a restaurant technology provider. Historically the company has provided best-in-class point of sale (POS) hardware terminals to blue chip quick serve restaurants (QSRs). They have decades-long relationships serving the most iconic QSRs in the world (ie McDonalds ...
Subway, Taco Bell, etc) and built deep institutional knowledge from serving this “enterprise” restaurant market. The restaurant business is difficult in its own right, but if you can’t track orders and efficiently operate a kitchen your toast. POS technology is mission critical.
Despite the importance, POS costs are only a tiny fraction of a restaurant's operating expenditures. It’s mission critical nature plus relatively insignificant cost delivers tremendous value to customers.
$PAR ’s operating model is in the early innings of a software transformation or “Rokuization.” The company is leveraging its strong customer relationships to grow its cloud software - Brink the only cloud solution to be implemented at multiple brands with 1,000+ restaurants.
Today Brink is installed in ~11,000 sites and growing more than 40% per year with extremely low churn. Brink has a pipeline with over 8,000 sites that have brand approvals or “available whitespace.” Most importantly the TAM is huge.
There are currently ~350k QSR & Fast Casual restaurants within the US, and 6.5 million restaurants globally who utilize a POS system. Brink is installed in 11k sites. The potential site runway is long.
Average Revenue Per User (ARPU) is another KPI. Current ARPU is a little over $2,000 per year. The typical restaurant spends between $10k-$15k on recurring tech expenses. Restaurants are typically not known as tech experts and would value a “go-to” partner to simplify the stack.
Recurring revenues are nice, but they are exceptional if you have a management that is smart about reinvesting them. Thus far Savneet has acquired (see Dec 2019 Restaurant Magic acquisition) and built (Par Payment Services) to significantly grow potential recurring revenues.
The plan is to build an open platform that provides the most customizable solution in the marketplace. The beauty of this strategy is not only that it's customer centric in nature, but also gives him and the PAR team a front row seat for the best M&A opportunities.
IMO $PAR hits the investment trifecta. 1) Long-term sales growth potential 2) ability to capture additional value from its platform as it grows and 3) can be purchased at an underappreciated multiple.
Excited to see what Savneet has up his sleeve in year 3 and beyond.
Excited to see what Savneet has up his sleeve in year 3 and beyond.
