NCR Corp. (NCR) recently extended its business ties with Johnny Rockets Group Inc. through a point-of-sale (POS) supply deal. Related financial details were not divulged.
California-based Johnny Rockets Group is a privately held company operating restaurant chains across the world, under the name Johnny Rockets.
Per the expanded terms, NCR will supply its POS solution, RealPOS 70XRT for Johnny Rockets’ owned as well as franchised restaurants. RealPOS 70XRT is among the most effective integrated touch POS workstations that clubs superior technologies, latest retail design and best serviceability.
In a previous settlement, NCR was selected to provide its POS solutions for only the company-owned restaurants of Johnny Rockets, which has now been extended to the franchisees.
NCR Corp. shares a long-standing relationship with Johnny Rockets. In 2004, the company was selected to provide its POS solutions for deployment at 42 out of its 144 restaurants.
Now-a-days, NCR Corp. is focusing on the retail vertical. In April, the company announced plans to supply its flagship POS solutions to retailers in Brazil. The idea behind the initiative is to capitalize on the enormous business potential in emerging markets (Brazil, Russia, India and China), which happen to be growing fast these days.
POS solutions are popular among retailers and restaurant owners. These solutions help users achieve maximum customer interaction, leading to higher productivity. With its POS solutions, NCR seeks to reach super and hypermarket chains, department stores, convenience stores, franchises and the food services market.
At its conference call, management has commented that recovery in the core financial and retail industries is gaining traction. Hence, we expect NCR to gain market share in the retail vertical in the near term. But POS solutions from International Business Machines Inc. (IBM) and Hewlett-Packard Co. (HPQ) will be a concern.
This apart, we are encouraged by NCR’s decent second quarter results and its strength across all geographical regions. We are also encouraged by the fiscal year guidance, and believe that the company is well positioned to deliver solid momentum across all its businesses.
Currently, NCR Corp. has a Zacks #2 Rank, which translates into a short-term Buy rating.
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