NCR Corp. (NCR) recently announced that it has sealed an agreement with Einstein Noah Restaurant Group (BAGL). Financial details of the deal were not divulged.
Under the agreement terms, NCR will offer its Aloha Enterprise point-of-sale (POS) software solution and Radiant POS hardware solution for the Group-owned brands: Einstein Bros. Bagels and Noah's New York Bagels restaurants. Einstein Noah is counting on the NCR solutions for enhancing its restaurant services.
NCR expects the implementation to be completed by the end of fiscal 2012, enabling the restaurant group to speed up its front-desk operations while delivering superior hospitality services.
The Aloha Enterprise solution was particularly developed for foodservice companies that don't want the recurring costs of hardware and support, or maintenance.
NCR Corp. inherited Radiant’s POS hardware solutions when it acquired the company in August 2011 for $1.2 billion in cash. Radiant Systems Inc. is an ace provider of cash registers and other point-of-sale devices for the retail and hospitality industries.
NCR expects the acquisition to help it grab a significant share of the point of sales terminals market. The acquisition also brings NCR a big customer base including Exxon Mobil (XOM), Kroger (KR) and Nordstrom (JWN). As a result, the company’s exposure to retail and hospitality sectors is expected to increase.
NCR reported decent third quarter results, with revenues improving across all business segments. However, revenue growth was witnessed across all major geographical regions. We are encouraged by the fiscal year guidance, and believe that the company is well positioned to deliver solid growth across all its businesses. NCR’s order trends remained encouraging as well.
We are optimistic on the growth trajectory in the company’s core financial and retail business, as well as the recently acquired Radiant business. Although we acknowledge some uncertainty in its entertainment segment, this is not material enough to completely offset the strength in NCR’s fundamentals.
NCR has a Zacks #2 Rank, implying a short-term Buy recommendation.
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