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Square (SQ) Boosts Reach to Restaurants With the Latest Move

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Square (SQ - Free Report) has made its Kitchen Display Software, KDS available to all kinds of restaurants in the United States, U.K., Canada, Australia and Ireland.

Notably, this move has helped the company in expanding global footprint.

KDS is now accessible on a subscription basis to anyone requiring a software to keep track on online ordering and delivery partners.

The latest software is featured with ticket timers, alerts, performance reports and unique kitchen solutions, which are helping the company to cut cost in operation and labor.

Notably, KDS combined with the existing Square for Restaurants Plus is a one-stop solution for any restaurant that runs huge volumes of orders covering multiple channels.

With improved order efficiency, KDS can directly connect the cooks to customers. This feature will greatly benefit the restaurant owners.

With the latest move, Square is likely to gain strong momentum among restaurant owners. This in turn will expand its seller base across the world.

Growing Cloud Kitchen Market

We believe that KDS, with its advanced features, will help Square in gaining strong footprint in the growing cloud kitchen market.

According to the Technavio report, the global cloud market is expected to hit $1.18 billion by 2024 at a CAGR of 19% between 2020 and 2024.

Further, a report from Allied Market Research indicates that this market is projected to reach $71.4 billion, at a CAGR of 12% during the forecast period 2021-2027.

Growing interest for online food delivery, international cuisine and the adoption of technology-based ordering platforms is contributing well to the cloud kitchen market expansion.

Product Portfolio Expansion

The latest move strengthens Square’s efforts toward expansion of product offerings across the globe.

In addition to the latest step, Square has introduced Automated Clearing House payments on Square Invoices. This is likely to provide efficient payment solutions to businesses and customers.

Moreover, it has introduced new features in inventory management for Square for Retail such as easy item create, quick inventory counting and smart stock alerts, which are expected to aid the retailers in efficiently controlling their inventory.

In addition, it announced three new developer tools - Snippets API, Web Payments SDK and Loyalty API. While Snippets API is created to help sellers engage their customers online in interactive ways, Web Payments SDK and Loyalty API are created to extend the benefits of online selling.

Square has rolled out Square for Restaurants in Canada, which is likely to help restaurant owners run their businesses smoothly amid the ongoing pandemic.

Further, Square Financial Services — a subsidiary of Square — has started banking operations, which will provide business loan and deposit products to Square sellers across the United States.

We note that these recent endeavors are likely to drive its momentum across the seller ecosystem.

Zacks Rank & Stocks to Consider

Currently, Square carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector include MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) , Apple Inc. (AAPL - Free Report) and Microchip Technology Incorporated (MCHP - Free Report) . While MACOM sports a Zacks Rank #1 (Strong Buy), Apple and Microchip carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rates for MACOM, Apple and Microchip are currently projected at 37%, 12.5% and 15.3%, respectively.

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