PAR Technology is par for the course for fast food giants such as McDonald's and Subway. The company makes point-of-sale (POS) systems that are used to input and display orders by more than 50,000 restaurants in some 110 countries. It also offers other software and hardware for restaurants, as well as hotels, resorts, and spas. In addition, through subsidiaries PAR Government Systems and Rome Research, PAR Technology designs data processing systems and develops software for advanced radar and other detection systems used by the US Department of Defense (DOD) and other federal and state agencies. Most sales come from customers in the US.
Sales and Marketing
PAR uses a direct sales force to sell to restaurant chains and their franchisees, as well as the hotel and resort market. The company markets to independent restaurants and non-foodservice clients such as convenience stores and movie theaters through resellers. It also has a dedicated sales force targeting international markets.
Sales to McDonald's and YUM! Brands together account for more than 40% of total revenue.
PAR's overall sales fell by 2% to $229 million in 2011, led by an 8% decrease in product sales as demand from McDonald's declined after completion of their upgrade initiative. The company's government operations grew year-over-year however.
The company reported a net loss of $16 million in 2011, its bottom line taking a hit from an impairment charge of $20 million related to a decline in its stock price. In 2010 PAR had net income of $3 million.
The company's strategy includes capitalizing on the growth of the restaurant industry in the Asia-Pacific region and developing products for the hotel and spa sector of the hospitality industry. To focus on its core hospitality and government operations, PAR sold its logistics management subsidiary (PAR Logistics Management Systems) in early 2012 to ORBCOMM for about $6 million.
Founder John Sammon owns about a third of PAR Technology. – less