NCR’s (NCR) point of sale (POS) solutions have been chosen by Tony Roma’s, an American steak house, for its first restaurant in Brazil. Leveraging NCR’s restaurant technology, which includes hardware and software technology such as Aloha software and NCR Pulse Real-Time, Tony Roma’s will help better serve its customers.
The Aloha solution helps restaurant staff to take orders and execute them faster. The solution also helps to process bill payment fast, thus cutting down waiting time for patrons. The Pulse Real-Time provides management a report of the daily operations of the business and enables proactive decision making.
The current deal is significantly important for NCR as Tony Roma’s is expected to expand its base in South America and add 10 more joints over the next five years with NCR as the technology solution provider.
Demand for NCR’s POS system solution is on the rise among retailers and restaurant owners. One of the primary advantages is the automation of bill payments and accounting, thus freeing up managers for customer interaction, leading to increased productivity. NCR strengthened its position in the POS market through the acquisition of Radiant Systems in Aug 2011.
According to TechNavio, the global POS software industry is expected to increase at an 8.03% CAGR (2012–2016). Moreover, TechNavio forecasts a 7.7% CAGR growth for the global wireless POS terminal market over the same period of time. Thus, NCR with its varied offerings of POS terminals and solutions should be able to capitalize on these growth opportunities.
We believe that NCR’s growing exposure to the ATM and self-service kiosk spaces is encouraging, given the tremendous growth prospects. Continued product launches, growing popularity of its self-service offerings and synergies from acquisitions may be considered growth catalysts for the company.
However, softness in the ATM business in mature markets, competition from Diebold, Inc. (DBD) and International Business Machines (IBM), and a high debt burden are the concerns.
Currently, NCR has a Zacks Rank #3 (Hold). Investors could also consider another stock, Micron Technology (MU), which has a Zacks Rank #2 (Buy).
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