Block's Square Backs The Baked Bear: Will Franchise Growth Accelerate?

Block’s XYZ Square is strengthening its presence in the food and beverage industry as The Baked Bear, a handcrafted cookie ice cream sandwich brand, expands its national footprint. The dessert chain currently operates 36 U.S. locations and plans to add at least five more over the coming year.

The Baked Bear has relied exclusively on Square since opening its first store in Pacific Beach, CA, in 2013. Square Register and Square Point of Sale are now deployed across all 36 locations, providing a standardized technology platform across its growing franchise network.

Square’s simple and scalable tools are particularly valuable as The Baked Bear expands across multiple states. Consistent POS technology can simplify employee training, streamline transactions and help franchisees maintain a uniform customer experience. This is especially useful for a growing brand with employees having varying levels of experience and operational needs.

For Square, the relationship highlights its ability to support restaurant operators beyond individual locations. Its integrated commerce solutions help multi-location and franchise businesses manage transactions while providing a technology foundation that can scale as new stores are added. This can strengthen Square’s role in customers’ daily operations and potentially encourage adoption of additional tools.

As restaurant operators increasingly seek unified platforms to simplify operations, manage payments and support expansion, Square’s growing presence among franchise brands could deepen customer relationships, increase ecosystem adoption and support growth in its commerce business.

How Are Block’s Competitors Faring?

Toast TOST continues to strengthen its restaurant technology business through new customer engagements. In 2026, BWH Hotels selected Toast as a preferred POS provider for properties across the United States and Canada, expanding Toast’s reach across a large hospitality network. Toast also added 9,500 net locations in the second quarter, underscoring strong customer adoption.

Lightspeed Commerce LSPD continued to expand its restaurant customer base in first quarter 2027, adding Vlaamsch Broodhuys, a 19-location Dutch restaurant chain, and Afrikana Peri Kitchen and Grill, which operates 17 U.K. locations. Blanc, a Michelin-starred Paris restaurant, also selected Lightspeed, highlighting its growing presence across diverse hospitality businesses.

XYZ’s Price Performance, Valuation & Estimates

Shares of Block have risen 18.1% over the past three months, which outperformed the broader industry and the S&P 500 Index.

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In terms of forward 12-month P/E, XYZ stock is trading at 18.08X, which is at a discount to the Zacks Internet Software industry’s 29.23X.

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Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised marginally northward over the past week. It indicates a significant increase year over year.

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Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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