OAKLAND, Calif. - Square, the financial services and mobile payment company, has entered into a strategic partnership with global foodservice distributor Sysco (NYSE:SYY) to offer advanced technology solutions to restaurants worldwide. This collaboration is part of Sysco's Restaurant Solutions program and aims to promote and co-market Square’s suite of technology products to Sysco's customer base.
The announcement, made today, underscores both companies' commitment to providing innovative solutions to the food and beverage industry. As a prominent player in the Financial Services industry with 14.75% revenue growth in the last twelve months, Square continues to expand its market presence. Neil Russell, Sysco's Chief Administrative Officer, remarked on the comprehensive and user-friendly nature of Square's technology, highlighting the potential benefits for businesses in terms of smarter operations and growth opportunities. For detailed insights into Square's growth trajectory and financial metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.
In conjunction with the partnership, Square has also introduced new features designed to streamline restaurant operations and improve cash flow. These features, which are being rolled out to sellers and are expected to be fully available in early 2025, include the ability to preauthorize Bar Tabs for customers using credit cards or digital wallets, and Instant Payouts for orders made through third-party delivery platforms. Instant Payouts allow restaurants to receive funds immediately without additional fees, addressing the common issue of delayed revenue from such platforms.
Furthermore, Square has implemented a system for setting up House Accounts, enabling businesses to invoice trusted regulars or large clients on a flexible schedule. This addition is anticipated to enhance customer relations and financial management for sellers. The company's strong liquidity position, with a current ratio of 2.07, supports its ability to innovate and expand its service offerings. Square's impressive 52.75% price return over the past six months reflects growing investor confidence in its business model and expansion strategy.
Eric Lurwick, General Manager at Cisco (NASDAQ:CSCO) Brewers, shared his positive experience with Square’s Bar Tabs feature, noting its impact on both staff and customers. Square for Restaurants users can access these updates via Square’s Release Manager, allowing for a smooth integration and staff training with minimal service disruption.
Ming-Tai Huh, Head of Food and Beverage at Square, emphasized the company's dedication to addressing the challenges faced by sellers in the restaurant industry by providing solutions that simplify their operations and improve access to earned revenue.
This partnership and the introduction of new features reflect Square's broader commitment to offering a comprehensive ecosystem of commerce solutions, including software for complex operations, e-commerce tools, financial services, and more, all aimed at helping sellers thrive. Information about Square's offerings for food and beverage businesses can be found on their website.
The details of this partnership and the new features are based on a press release statement from Square.
In other recent news, Block Inc. has been the subject of multiple analyst upgrades and positive financial projections. Bernstein SocGen Group maintains an Outperform rating on Block, noting the company's strong financial health and impressive revenue growth of 14.75% over the last twelve months. Monness, Crespi, Hardt, and BTIG have also upgraded Block's shares, setting new price targets based on a positive outlook for the company's future performance.
Block's financial performance has been robust, with a 19% increase in gross profit, reaching $2.25 billion, and an improved adjusted free cash flow of $1.5 billion. The company expects a 14% year-over-year growth for Q4 2024.
In addition to financial updates, Block has introduced a new inheritance feature for its Bitkey bitcoin wallet, simplifying the process of transferring digital assets to beneficiaries after the owner's passing.
As for future expectations, Block aims to achieve the Rule of 40 by 2026, focusing on mid-teens gross profit growth and a mid-20% adjusted operating income margin. These are recent developments in Block's strategy for continued growth.
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