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Greenhaven Road Capital Prefers PAR Technology (PAR) Among its Competitors
February 1, 2021
Greenhaven Road Capital, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A spectacular net return of 105% was recorded by the fund for the year end 2020, outperforming its Russell 2000 benchmark that returned 9.4%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Greenhaven Road Capital, in their Q4 2020 Investor Letter said that they sold their positions in PAR Technology Corporation (NYSE: PAR) the company changed its head of digital initiatives. PAR Technology Corporation is a systems and service solutions provider that currently has a $1.3 billion market cap. For the past 3 months, PAR delivered a decent 59.52% return and settled at $62.26 per share at the closing of January 29th. Here is what Greenhaven Road Capital has to say about PAR Technology Corporation in their investor letter: "Par Technology (PAR) has been a top holding for two years. CEO Savneet Singh is one of the smartest executives – and one of the smartest people – I have come across. I believe he will be the smartest and most resourceful participant in most fights. PAR’s main competition, Micros and Aloha, are owned by Oracle and NCR, respectively – large, publicly traded companies with decades of experience and strong balance sheets. In one corner, we have Savneet Singh, who relocated his family to upstate New York, recruited team members, strengthened the balance sheet, put together an acquisition strategy to greatly improve functionality, and is introducing a payments processor to improve the economics. I will take Savneet and PAR in that match-up. 2021 should be an interesting year for PAR. They began the year announcing that CKE Restaurants, which operates Carl’s Jr. and Hardee’s, had selected their Brink POS (point of sale) system. CKE’s nearly 4,000 restaurants would represent a 30% increase in Brink’s store count. 2021 should see an acceleration of growth in installs, rising ARPU from pricing and payments, the sale of their legacy defense business, and a large acquisition utilizing the cash raised in October. There remains a very long runway for growth and the opportunity to leverage the strategic positioning of the POS as the spine of a restaurant to add adjacent software products for the hospitality space. PAR is our largest holding." Link to article here.
Greenhaven Road Capital, in their Q4 2020 Investor Letter said that they sold their positions in PAR Technology Corporation (NYSE: PAR) the company changed its head of digital initiatives. PAR Technology Corporation is a systems and service solutions provider that currently has a $1.3 billion market cap. For the past 3 months, PAR delivered a decent 59.52% return and settled at $62.26 per share at the closing of January 29th. Here is what Greenhaven Road Capital has to say about PAR Technology Corporation in their investor letter: "Par Technology (PAR) has been a top holding for two years. CEO Savneet Singh is one of the smartest executives – and one of the smartest people – I have come across. I believe he will be the smartest and most resourceful participant in most fights. PAR’s main competition, Micros and Aloha, are owned by Oracle and NCR, respectively – large, publicly traded companies with decades of experience and strong balance sheets. In one corner, we have Savneet Singh, who relocated his family to upstate New York, recruited team members, strengthened the balance sheet, put together an acquisition strategy to greatly improve functionality, and is introducing a payments processor to improve the economics. I will take Savneet and PAR in that match-up. 2021 should be an interesting year for PAR. They began the year announcing that CKE Restaurants, which operates Carl’s Jr. and Hardee’s, had selected their Brink POS (point of sale) system. CKE’s nearly 4,000 restaurants would represent a 30% increase in Brink’s store count. 2021 should see an acceleration of growth in installs, rising ARPU from pricing and payments, the sale of their legacy defense business, and a large acquisition utilizing the cash raised in October. There remains a very long runway for growth and the opportunity to leverage the strategic positioning of the POS as the spine of a restaurant to add adjacent software products for the hospitality space. PAR is our largest holding." Link to article here.