2024-05-01 07:45:00 ET
Summary
- PAR has several “ways to win” and I think the next five years will see a compelling transformation resulting in this caterpillar coming out of the cocoon and being valued like a butterfly.
- PAR has been growing their recurring revenue dramatically over the last five years through acquisitions and organic growth.
- PAR has been our largest position for a while now for all the reasons laid out above, but the beauty of good teams is that they can surprise to the upside.
- This is a business getting stronger with every passing day and its momentum is showing up in the ARR/share, customer wins, and product launches.
The following segment was excerpted from this fund letter.
PAR Technology ( PAR )
Let’s start with the acknowledgement that anything with the word “technology” in the name is not 100% inevitable. With that said, PAR has several “ways to win” and I think the next five years will see a compelling transformation resulting in this caterpillar coming out of the cocoon and being valued like a butterfly. PAR’s core business is POS (point of sale) for chain restaurants, which has the benefit of being a very low churn business. Losing less than 5% of locations per year, PAR’s high retention rate means that new customers and new products can drive growth. They are not just spinning their wheels to refill a leaky bucket. Stable base + new customers + new products = Good Business....
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Greenhaven Road Capital - PAR Technology: Compelling Transformation In Next Five Years