Burger King deal bolsters revenue at PAR Technology

NEW HARTFORD, N.Y. — PAR Technology Corp. (NYSE: PAR) closed out the third quarter with a narrower loss than a year ago and high hopes for the future after landing Burger King as a new client. 

PAR posted a net loss of $15.5 million, or 56 cents per share, in the quarter ending Sept. 30, 2023, compared to a net loss of $21.3 million, or 70 cents, in the third quarter of 2022.

PAR also reported that revenue increased 15.5 percent to $107.1 million in this year’s third quarter from $92.8 million in the year-prior period.

“I’m pleased to report we delivered a strong third quarter,” PAR Technology President/CEO Savneet Singh said in a Nov. 9 conference call with investors, analysts, and the media. He went on to highlight successes over the quarter.

“We continue to win new customer opportunities with Brink due to its mission-critical position within the restaurants and the feature-rich capabilities,” he said. Brink is PAR’s point-of-sale (POS) system.

“Brink is the growth enabler for enterprise and emerging enterprise restaurants. This proved out in Q3 as we announced the signing of Burger King as our next exclusive Brink and MENU customer,” Singh continued. MENU is PAR’s digital-ordering platform.

PAR’s products will roll out across 7,000 domestic Burger King locations. Burger King is part of Restaurant Brands International, which also includes Tim Hortons, Popeyes, and Firehouse Subs.

“It’s hard to express how transformative this new customer will be from both the strategic and the financial aspect of PAR,” Singh said. “This selection by Burger King, one of the largest and most iconic restaurant brands, is something that we will build upon for the years to come.”

Singh expects Burger King to be a strong revenue driver for PAR over the next two years as it rolls out products to restaurants.

While Burger King was the largest new customer for PAR’s MENU platform, it wasn’t the only one. Excluding Burger King, PAR signed more than 750 locations during the quarter including Scooters Coffee, Coconut Kenny’s, and Restaurant Services Limited.

PAR also posted strong results in its payment-services segment. “In Q3, we signed brands such as Rocky Mountain Chocolate Factory, Hat Creek Burger, and Coconut Kenny’s, to name a few,” Singh said. “Customers are increasingly attaching PAR payments via Brink, MENU, and Punchh, again validating our unified commerce strategy.” PUNCHH is PAR’s customer-engagement platform.

The company’s revenue beat the Zacks Equity Research consensus estimate by nearly 6.7 percent, the third time PAR has topped the estimate over the last four quarters. PAR’s stock price has gained more than 45 percent year to date through Nov. 20, and about 57 percent over the last 12-month period, according to Yahoo! Finance data.

While PAR did not provide future guidance, Zacks forecasts fourth-quarter revenue of $103.28 million.

“We are at a unique point of inflection at PAR,” Singh said. “We believe our business is winning at a higher rate than ever. At the same time, we’re observing a strong change in our financial profile. What makes us even more positive is that we believe we’re just at the beginning of a tidal wave of large deals coming to market, which should provide for long-term sustainable growth.”

Headquartered in New Hartford, PAR provides products and services to the restaurant industry including point-of-sale, loyalty, digital ordering, and back-office solutions. PAR products are in use at more than 70,000 restaurants in over 110 countries.