1. PAR Technology Corporation (NYSE:PAR)
Number of Hedge Fund Holders: 19
PAR Technology Corporation (NYSE:PAR) is an American software application company that provides technology solutions to restaurants, retail industries, and governments. At the end of Q2 2022, ADW Capital held 1.65 million company shares, valued at $61.863 million, representing 29.19% of the fund’s portfolio.
On August 10, Craig-Hallum analyst George Sutton reaffirmed a Buy rating on PAR Technology Corporation (NYSE:PAR)’s shares and raised the price target to $50 from $40. The analyst believes that the company has done a “terrific job” in employing M&A to expand its business to take a significant share of the enterprise restaurant market.
PAR Technology Corporation (NYSE:PAR) announced two significant acquisitions since the beginning of 2022. In May, the company announced the acquisition of guest engagement platform, Punchh, for $500 million. In early August, the company announced that it acquired one of Switzerland’s fastest-growing, modern, omni-channel ordering solutions for restaurant brands, MENU.
Here is what Farrer Wealth Advisors had to say about PAR Technology Corporation (NYSE:PAR) in its Q1 2022 investor letter:
“Par Technologies is a leader in the enterprise POS space, servicing restaurant chains such as Arby’s, Dairy Queen, and Five Guys. The company was in the hardware space for most of its existence, but when a new CEO, Savneet Singh, was installed a few years ago, he refocused the company on a newly purchased software called Brink. Singh had done a decent job of shifting the company’s focus to software sales, removing the technical debt inherent in Brink, and making smart acquisitions such as Punchh (loyalty platform). However, our conversations with management led us to believe that the strategy Par was employing was difficult, as re-writing the DNA of a company takes time. Thus, it started to become one of those investments where we kept saying to ourselves “let’s give them one more quarter” which in hindsight, should have been an internal red flag. Our patience ran out these past few months and given the drawdowns and other opportunities in the market, we sold our position. That said, we never built Par into anything but a small position, and it was our smallest position at the time of sale. Considering most of our clients owned the stock from anywhere from $10-25 the end outcome was reasonable despite our thumb sucking. We do think Par will eventually be quite successful in their space, however we think its best to put our money elsewhere for now. We wish the company and management the best and will root for their success from the side-lines.”
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