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    Is Square (SQ) Quietly Becoming the Operating System for Mid‑Sized Retail Chains?

    Simply Wall St·07/27/2026 02:17:45
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    • Honolulu Cookie Company recently announced that it is expanding its partnership with Square, now running Square’s retail platform, loyalty tools, and integrated inventory systems across 14 locations in Oahu, Maui, Las Vegas, and Guam, supporting a new flagship store concept opened in July 2026.
    • This expansion shows how Square’s end-to-end ecosystem, from customer data and loyalty to inventory integrations and handheld devices, can underpin multi-location retailers’ efforts to scale operations more efficiently.
    • Next, we’ll assess how Square’s role as the operational backbone for Honolulu Cookie Company’s larger flagship store could influence Block’s broader investment narrative.

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    Block Investment Narrative Recap

    To own Block, you need to believe its Square and Cash App ecosystems can keep deepening relationships with both merchants and consumers while managing rising competition and cost pressures. The Honolulu Cookie Company expansion highlights Square’s ability to support larger, multi-location retailers, but it does not materially change the near term focus on improving profitability and defending margins in an increasingly crowded payments and fintech market.

    Among recent announcements, Bluestone Lane’s rollout of Square across 65 locations feels especially relevant. Like Honolulu Cookie Company, Bluestone is leaning on Square for unified hardware, software, and integrations, reinforcing the catalyst that Square for Businesses can scale with more complex, higher volume merchants. Together, these wins help illustrate how Square’s broader ecosystem could support Block’s efforts to grow gross profit while spreading fixed platform costs over larger and more sophisticated clients.

    Yet against that promise, investors still need to weigh rising competition and fee pressure that could quietly chip away at Block’s margins over time...

    Read the full narrative on Block (it's free!)

    Block's narrative projects $33.6 billion revenue and $3.3 billion earnings by 2029.

    Uncover how Block's forecasts yield a $90.52 fair value, a 17% upside to its current price.

    Exploring Other Perspectives

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    Some of the lowest analysts were assuming Block would reach about US$31.1 billion in revenue and US$2.9 billion in earnings by 2029, yet they still saw heavier regulatory and cyber costs as major threats. Compared with the more optimistic view that Square’s innovation and client wins could steadily expand margins, this more cautious camp shows how far opinions can differ and why it is worth weighing both sets of assumptions in light of new customer stories like Honolulu Cookie Company.

    Explore 9 other fair value estimates on Block - why the stock might be worth 7% less than the current price!

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.