PAR (PAR) investor relations material

Market overview and industry trends

• 2025 was a challenging year for restaurants, with traffic down and mixed same-store sales, but signs of recovery appeared in December, suggesting potential stabilization in 2026.

• Full-service dining outperformed quick service, with brands like Chili's and Applebee's attracting value-focused customers.

• Restaurant technology adoption remains in early stages, especially among enterprise brands, with increased RFP activity and a growing pipeline in 2025.

• Stability in the market is more important than volatility for enterprise tech adoption, as large IT decisions are less sensitive to short-term sales fluctuations.

Multi-product strategy and TAM expansion

• The platform approach has led to 70% of new deals in 2025 involving multiple products, up from near zero two years ago, increasing ARPU and customer stickiness.

• Cross-selling existing products to the current base could 2.5x revenue, with additional white space offering 4–5x growth potential.

• Expansion into new verticals like convenience stores and pizza has opened significant new TAM, with the pizza category now fully accessible.

• There are about 1 million enterprise restaurants in the U.S. and Canada, and the recent entry into pizza further broadens the addressable market.

Major wins and growth drivers

• Secured a $14–15 million ARR deal with Papa John's, becoming a top-three customer, with rollout starting Q4 and potential for further product sales.

• The Papa John's win validates differentiated capabilities and opens the enterprise pizza market, historically underserved by tech vendors.

• Additional Tier-1 opportunities are in the pipeline, with updates expected in Q2 and later in the year; these could be transformative.

• ARR growth is still driven mainly by new logos, but cross-sell and upsell opportunities are expected to increase, especially as legacy contracts renew.