Toast (TOST) closed at $39.95 in the latest trading session, marking a -2.06% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.05%. Elsewhere, the Dow saw a downswing of 0.59%, while the tech-heavy Nasdaq appreciated by 0.45%. The restaurant software provider's stock has dropped by 5.14% in the past month, falling short of the Computer and Technology sector's gain of 5.42% and the S&P 500's gain of 3.44%.Analysts and investors alike will be keeping a close eye on th ...

BOSTON--(BUSINESS WIRE)--Opening a new restaurant is an act of courage and passion—a challenging venture that requires vision, a commitment to excellence, and a thousand little things gone right vs wrong to make it a success. To celebrate a new class of top restaurant talent, Toast (NYSE: TOST) has teamed up with Bon Appétit to present its highly anticipated 2025 Best New Restaurants list, reinforcing Toast's commitment to supporting the rising hospitality leaders, risk takers, and operators th. ...

Toast, Inc. (NYSE:TOST) is one of the best growth stocks under $50 to buy now. In a report released on August 13, Dominick Gabriele from Compass Point maintained a Buy rating on Toast, Inc. (NYSE:TOST) with a price target of $52.00. Toast Inc. (TOST) Declines 7.1% on Broader Market Downturn Similarly, UBS analyst Timothy Chiodo also maintained a Buy rating on the stock on August 7, setting a price target of $55.00. In another report released on August 6, Needham also reiterated bullish sentiments for To ...

Group 1 - The company has achieved a year-over-year recurring gross profit growth of 31% in Q2 [1] - The midterm margin goals are projected to be between 30% and 35%, which the company is on track to achieve [1] - The company is adding over $400 million in Annual Recurring Revenue (ARR) in the trailing 12 months [1] Group 2 - The company is establishing foundations for long-term durable growth through new vectors of growth [2]

Summary of Toast (NYSE: TOST) 2025 Conference Call Company Overview - **Company**: Toast, Inc. - **Industry**: Restaurant technology and point-of-sale solutions Key Points and Arguments Business Performance - Toast reported a **31% year-over-year growth** in current gross profit for Q2 [3] - Achieved mid-term margin goals of **30% to 35%** and is adding over **$400 million in ARR** annually [3] - The company is focused on establishing foundations for long-term growth, particularly in retail and international enterprise sectors [3] Market Penetration and Growth - The U.S. SMB and mid-market restaurant TAM is estimated at **600,000 restaurants**, with Toast's penetration in the high teens [6] - In top markets with over **30% share**, Toast is experiencing faster growth than average [6] - Record net adds of **8,500** in Q2, indicating strong momentum [9] Investment in Core and New Markets - Toast is strategically investing in markets that are not yet "flywheel" markets to increase density and market share [10] - The company is focusing on customer-focused innovation, particularly in AI, to enhance the platform and customer experience [10] New Vertical Expansion - Toast has launched operations in **Canada, the UK, Ireland**, and recently **Australia**, with positive early results [16] - The company is seeing significant growth in full-service restaurants, which now account for over **50%** of net adds in international markets [17] - The total addressable market in food and beverage retail is estimated at **220,000 locations**, with potential for significant growth [29] Enterprise Business Development - Toast is making strides in the enterprise sector, with notable wins such as **Dine Brands** and **Marriott** [21] - The company is optimistic about the ARR opportunity and pipeline visibility, with implementations expected within **18 to 24 months** [24] Financial Metrics and Pricing Strategy - Toast maintains a disciplined approach to pricing, focusing on small, steady movements rather than large price changes [50] - The fintech take rate has seen a modest increase, with a focus on cost optimization and innovation to drive future growth [51] Challenges and Future Outlook - The company is monitoring the impact of tariffs on hardware costs, expecting manageable effects in **2025** and a full-year impact in **2026** [53] - Toast is open to M&A opportunities but maintains a high hurdle for acquisitions to ensure alignment with core business strategy [56] Customer Insights and AI Integration - Customer feedback indicates a preference for using Toast's integrated platform for ease of service and support [39] - The company is leveraging AI to enhance customer experience, including tools for data analysis and personalized dining experiences [44][48] Additional Important Content - Toast emphasizes the importance of maintaining a balance between expanding into new markets and ensuring a strong core business [30] - The company is focused on building a comprehensive suite of products to address various customer needs, including payroll and inventory management [38] - The ongoing development of AI-driven products is seen as a critical area for future monetization and customer satisfaction [46][48]

Core Insights - Toast Inc. (TOST) and Block Inc. (XYZ) are prominent players in the merchant payments and point-of-sale (POS) sector, with TOST focusing on the restaurant market and Block offering a diversified fintech ecosystem [1][2] Group 1: Market Dynamics - The POS market is projected to grow at a CAGR of 8.1% from 2025 to 2030, reaching $181.47 billion [2] - Both companies are leveraging the digitization of payments and integrated software platforms to capture a larger share of the profitable POS market [2] Group 2: Toast Inc. (TOST) Performance - TOST added 8,500 net new locations in the second quarter, totaling 148,000 locations, marking a 24% year-over-year increase [3] - The company is on track to exceed $100 million in Annual Recurring Revenue (ARR) by the end of 2025, with significant wins in the quick-service restaurant (QSR) segment [4] - TOST's AI-powered tools, including the Toast Go 3 Handheld, enhance operational efficiency for restaurant staff [5] - The company expects a 29% growth in fintech and subscription gross profit for 2025, with adjusted EBITDA projected at $575 million, reflecting a 32% margin [6] Group 3: Block Inc. (XYZ) Performance - Block's Square POS platform serves a diverse range of businesses, contributing to its risk mitigation strategy [8] - Square's transaction revenues reached $1.76 billion, up 8.8% year-over-year, with GPV growth accelerating to 10% [11] - The company is focusing on expanding its presence in the QSR segment and has seen strong performance in new volume added [12] Group 4: Stock Performance and Valuation - TOST and XYZ have seen stock declines of 11.2% and 1.8%, respectively, over the past month [16] - TOST shares are trading at a forward price/earnings ratio of 37.99X, while XYZ is at 24.17X, indicating that both companies are considered overvalued [18][17] - Analysts have revised earnings estimates upward by 12.8% for TOST and 3.6% for XYZ for the current year [19][21] Group 5: Competitive Positioning - TOST's focus on the restaurant ecosystem and its rapid expansion into enterprise and international markets provide a scalable growth opportunity [23] - The integration of AI-driven product launches enhances customer retention and upsell potential for TOST, positioning it favorably in the competitive POS landscape [23]

Core Insights - Toast, Inc. is enhancing its profitability through new product launches and expansion efforts, including the Toast Go 3 handheld device and the AI-powered ToastIQ [1][10] - The company has raised its full-year outlook for gross profit and adjusted EBITDA, indicating strong performance expectations [5] Product Innovations - The Toast Go 3 handheld features built-in cellular connectivity and a 24-hour battery life, facilitating easier order taking and payment processing for restaurant staff [1][10] - ToastIQ, launched in May 2025, automates workflows and personalizes experiences using restaurant data, with features like Menu Upsells and AI-Marketing Assistant [2][3] Financial Performance - Toast expects non-GAAP subscription services and financial technology solutions gross profit to be between $1.815 billion and $1.835 billion, reflecting a growth of 28–29% over 2024 [5] - Adjusted EBITDA guidance has been increased to $565 million–$585 million from a previous range of $540 million–$560 million [5] Cost Challenges - Operating expenses rose 18% year over year in Q2, with sales and marketing expenses increasing by 28%, raising concerns about profitability [6] - Management anticipates lower margins in Q4 due to seasonal payment volume slowdowns and higher tariff expenses [6][7] Market Dynamics - Gross Payment Volume (GPV) per location declined by 1%, despite a 23% year-over-year increase in overall GPV, indicating potential challenges in transaction volumes [7] - The competitive landscape is intensifying with rivals like Block and Lightspeed, which are also innovating aggressively in the cloud-based POS and payments solutions space [8][9][12] Stock Performance - TOST shares have increased by 80.9% over the past year, outperforming the Internet-Software industry's growth of 36% [13] - The price/book ratio for TOST is currently at 11.67X, significantly higher than the industry average of 6.07 [14]

Core Insights - Toast, Inc. (TOST) achieved significant customer growth, adding 8,500 net new locations in Q2 2025, totaling 148,000 locations, representing a 24% year-over-year increase. This growth is central to TOST's investment narrative as it enhances operational footprint and recurring revenue base [1][9] - Management anticipates record net additions in the current quarter, with 2025 expected to exceed the full-year net additions of 2024 [1][9] - The company is focusing on deepening its presence in the U.S. SMB restaurant market, successfully increasing market share across various SMB markets, even in areas with over 30% penetration [1] Growth Drivers - New product features and international expansion are expected to contribute to net new location growth, with TOST surpassing 10,000 live locations across various segments in Q2 [2] - The company is on track to achieve over $100 million in Annual Recurring Revenue (ARR) by year-end, with notable wins among large Quick Service Restaurant (QSR) brands like Firehouse Subs [2] - TOST has entered Australia, marking its fourth international market after the UK, Ireland, and Canada, which is anticipated to further drive growth [2] Challenges and Risks - Expanding beyond the U.S. market presents regional complexities and execution risks, particularly amid macroeconomic uncertainties such as trade tensions and potential consumer slowdowns [3] - The competitive landscape poses additional risks, with rivals like Block's Square and Lightspeed enhancing their offerings and focusing on client acquisition, which may lead to slower net additions or increased acquisition costs for TOST [4] Competitive Landscape - Block's Square offers a comprehensive commerce ecosystem, including Square for Restaurants, which competes directly with TOST's platform, featuring various management tools for restaurants [5] - Block has launched Square AI, providing sellers with data-driven insights to enhance business operations, showcasing its commitment to innovation [6] - Lightspeed is focusing on North America's Retail and Europe's Hospitality sectors, reporting a 5% year-over-year increase in customer locations, and is investing heavily in platform innovation [7][8]

Core Insights - Toast, Inc. (TOST) is projecting a 29% year-over-year growth in fintech and subscription gross profit for 2025, an increase from its previous outlook of 25-27% [1] - The company is expanding its presence in U.S. SMB restaurants and entering new international markets, including Australia, which marks its fourth international market [2][10] - A strategic partnership with American Express aims to enhance dining experiences and create new revenue streams [3][10] Growth Strategy - Toast's expansion into Australia includes onboarding its first customer, Graze Craze, which opted for Toast's services over local providers [2] - The partnership with American Express will integrate guest tools from Resy and Tock with Toast's Digital Chits, providing customer insights and exploring new benefits for AMEX Card Members [3] Market Performance - Toast has seen a 24% year-over-year increase in locations served, reaching 148,000, with over 10,000 sites in international markets and enterprise customers [5] - The total fintech and subscription gross profit rose 35% year-over-year to $464 million, with expectations of $465-475 million for the third quarter, indicating a growth of 23-26% [5] Competitive Landscape - Toast is gaining market share in SMB sectors, even in areas with over 30% penetration, indicating the effectiveness of its local go-to-market strategy [4] - The company faces competition from local POS providers and major software firms like Block and Oracle [6] Financial Outlook - The Zacks Consensus Estimate for TOST's earnings for 2025 has been revised up by 12.8% to 97 cents [14] - TOST shares have increased by 73.5% over the past year, outperforming the Zacks Internet-Software industry's growth of 36.9% [12]

Core Insights - Toast, Inc. (TOST) shares have increased by 78% over the past year, significantly outperforming the Internet Software market and the Zacks Computer & Technology sector, which grew by 43.6% and 25.4% respectively [1][8] - The company is a leading provider of software-as-a-service (SaaS) and hardware solutions tailored for the restaurant market [1] Financial Performance - In the second quarter, TOST reported revenues of $1.55 billion, marking a nearly 25% increase and surpassing the Zacks Consensus Estimate by 1.1% [5][8] - The annualized recurring run-rate (ARR) rose by 31% to $1.9 billion [5] - TOST added a record 8,500 net new locations, bringing the total to 148,000, which is a 24% year-over-year increase [6][8] - The company anticipates a 29% growth in fintech and subscription gross profit for 2025, up from an earlier estimate of 26% [10] Market Expansion and Product Innovation - TOST is expanding its presence in the U.S. SMB restaurant market and has ventured into Australia, its fourth international market [6][7] - The launch of Toast Go 3 Handheld, featuring ToastIQ, aims to enhance the ordering and payment process for restaurant staff [9] - The company has surpassed 10,000 live locations across various segments, indicating strong traction among large QSR brands [7] Challenges and Competitive Landscape - The restaurant industry faces challenges such as consumer spending fluctuations, labor inflation, and supply chain volatility, which could impact TOST's performance [11] - A decline in gross payment volume (GPV) per location poses a risk, despite overall GPV increasing by 23% year-over-year to $50 billion [12] - Competitive pressures from companies like Block, Oracle, and Lightspeed could limit TOST's growth potential [16][18] Valuation Concerns - TOST's stock is considered to have a stretched valuation, with a price/book multiple of 12.07X compared to the industry's 6.94X [19][20] - The company is currently rated with a Zacks Rank 3 (Hold), suggesting caution for new investors [25]