PAR Technology Moving to Neutral to Reflect Updated Valuation Methodology

Research evidence excerpt

PAR Technology Moving to Neutral to Reflect Updated Valuation Methodology

Ella Smith AC North America Equity Research

(1-212) 622-2451 08 June 2026 J P M O R G A N

ella.smith@jpmchase.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

We rate PAR Neutral. PAR Technology is a pure-play restaurant

technology provider offering unified, cloud-native solutions

across front-of-house and back-of-house operations. The

company serves some of the largest restaurant brands in the

United States, including McDonald’s (25% of revenue in 1Q26),

Yum! Brands, and Dairy Queen, with solutions spanning point-

of-sale, payments, loyalty management, digital ordering, and

operational analytics. PAR has been gaining market share from

legacy players like NCR and Oracle as restaurants migrate

YTD 1m 3m 12m toward modern, platform-based solutions. However, much of

Abs -63.4% -7.8% -30.9% -80.1% this growth has been inorganic, with acquisitions accounting for

Rel -78.4% -7.6% -44.0% -113.2%

~90% of site additions from FY23 to FY24. Management

Company Data estimates a $47.7B global TAM with less than 2% penetration,

Shares O/S (mn) 41 but we see intense competition from well-capitalized

52-week range ($) 72.15-11.59 incumbents.

Market cap ($ mn) 538.93

Exchange rate 1.00 Valuation

Free float (%) 97.4%

3M ADV (mn) 1.85 Our $16/sh PT is derived using a 23x EV/EBITDA multiple on

3M ADV ($ mn) 26.3 our 2026 estimates. This multiple is at the higher-end of the

Volatility (90 Day) 93 range at which Vertical Software companies currently trade. We

Index RUSSELL 2000

BBG ANR (Buy | Hold | Sell) 8|1|1 believe this is justified due to PAR’s sticky, enterprise-grade

customer base with ample potential to expand cross-sell.

Key Metrics (FYE Dec)

$ in millions FY25A FY26E FY27E FY28E