Core Insights - Toast, Inc. (TOST) shares have increased by 21.6% year to date, outperforming the Internet Software market and the Zacks Computer & Technology sector, which grew by 14.6% and 8.4% respectively, while the S&P 500 returned 5.6% in the same period [1] Company Performance - TOST closed at $44.34, down 0.3% recently, and is near its 52-week high of $46.57 [4] - The company registered over 6,000 net locations in Q1 2025, totaling approximately 140,000 customer locations globally, reflecting a 25% year-over-year growth [7] - Toast achieved an adjusted EBITDA margin of 32%, exceeding its medium-term target of 30-35%, attributed to disciplined expense management [8] - Free cash flow turned positive at $69 million, compared to a $33 million loss a year ago [9] Growth Opportunities - Toast is expanding in the U.S. SMB restaurant market, with significant wins like Applebee's and Topgolf, and has only 10% penetration in its total addressable market of 1.4 million locations, indicating substantial long-term growth potential [5] - The company is targeting to exceed 10,000 locations by the end of 2025 across new growth areas: enterprise, international, and food & beverage retail [6] - Toast projects a 26% growth in fintech and subscription gross profit for 2025, with an estimated adjusted EBITDA of $550 million and a 31% margin, up five percentage points from 2024 [10] Challenges - The decline in Gross Payment Volume (GPV) per location poses a challenge, with GPV per location down 3% year-over-year, despite overall GPV increasing by 22% to $42 billion in Q1 [12] - The restaurant industry remains sensitive to consumer spending, labor inflation, and supply-chain volatility, which could impact TOST's performance [11] - TOST's stock is considered expensive, trading at a price/book multiple of 13.20X compared to the industry's 6.57X, indicating a stretched valuation [16] Investment Outlook - Despite headwinds, Toast's focus on expanding its addressable market and strategic investments in AI support long-term upside [17] - The company is currently rated Zacks Rank 3 (Hold), suggesting long-term investors should maintain their positions while new entrants may benefit from waiting for a more favorable entry point [18]

Core Insights - Samuel Adams has renewed its multiyear partnership with the Boston Red Sox, remaining the team's Official Beer for the next decade, which began in 2018 [1][3] - The partnership will also include other Boston Beer brands such as Angry Orchard, Truly, and Twisted Tea [1] - The collaboration emphasizes the deep roots of both brands in Boston and their commitment to enhancing the fan experience at Fenway Park [3] Company Overview - Samuel Adams is a leading independent American craft brewer, founded in 1984, known for its flagship Boston Lager and its role in the craft beer revolution [6][7] - The Boston Beer Company, which owns Samuel Adams, has expanded its portfolio to include hard cider, hard seltzer, and hard tea, with a focus on innovation and quality [8] - The company has a philanthropic program called Brewing the American Dream, aimed at supporting entrepreneurs and fellow brewers [6] Partnership Details - The Sam Deck in right field at Fenway Park remains a popular destination for fans, with over 275,000 pints of Sam Adams served [2] - The partnership will feature special events, including watch parties at the Downtown Boston Taproom and Boston Brewery, and the introduction of a new beer, Grand Slam Adams, for the Sox season [3][4] - Samuel Adams has a history of community involvement, including being the official beer of the Boston Marathon and supporting local charities [4]

Group 1 - Toast's stock price decreased by 2.84% to $43.03, underperforming the S&P 500's daily loss of 0.11% [1] - Over the past month, Toast's shares increased by 3.02%, while the Computer and Technology sector and the S&P 500 gained 8.76% and 5.17%, respectively [1] Group 2 - Toast is expected to report an EPS of $0.23, reflecting a significant increase of 1050% compared to the same quarter last year [2] - The projected revenue for the upcoming earnings release is $1.53 billion, which is a 23.45% increase from the previous year [2] Group 3 - For the entire fiscal year, earnings are projected at $0.95 per share, representing a 3066.67% increase, and revenue is expected to be $6 billion, up 21.06% from the prior year [3] - Recent changes to analyst estimates for Toast can indicate short-term business trends, with positive revisions suggesting an optimistic outlook [3] Group 4 - The Zacks Rank system, which evaluates estimate changes, has shown a correlation with stock price performance, with stocks rated 1 historically producing an average annual return of +25% since 1988 [4][5] - Currently, Toast holds a Zacks Rank of 3 (Hold) [5] Group 5 - Toast's Forward P/E ratio is 46.72, indicating a premium compared to the industry average Forward P/E of 29.16 [6] - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 40, placing it in the top 17% of over 250 industries [6] Group 6 - The Zacks Industry Rank assesses the performance of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Company Overview - Toast, Inc. is a cloud-based restaurant management platform providing integrated hardware and software solutions for full-service and quick-service restaurant industries [3][4] - The company has rapidly expanded since its first product launch in 2013, serving independent restaurants, multi-location chains, and franchise groups across the U.S. [4] Market Performance - Toast's shares are up over 21% year-to-date and nearly 200% over the past three years, despite a high P/E ratio of 187.35 [2][5] - The company's market capitalization stands at $25.6 billion, placing it in the mid-cap category [5] Financial Performance - For Q1 2025, Toast reported EPS of $0.10, a 167% year-over-year increase, and revenue of $1.34 billion, up 24.7% [8] - The company achieved a net income of $56 million, a 75% quarter-over-quarter increase, and adjusted EBITDA of $133 million [8] - Annual recurring revenue (ARR) grew by 31%, with SaaS ARR climbing 32% [9] Growth Outlook - Toast raised its full-year 2025 outlook, projecting 26% growth in fintech and subscription gross profit and $550 million in adjusted EBITDA [10] - The stock price forecast is $41.21, with a moderate buy rating from analysts [7] Institutional Support - Over the past 12 months, $4.5 billion in institutional capital has flowed into Toast, with 82.9% of shares held by institutions [11] Technical Analysis - The stock is consolidating just below a key resistance area near $45, with $42 acting as short-term support [12][13]

Company Insights - Marathon Petroleum Corporation (MPC) reported first-quarter total revenues and other income of $31.85 billion, exceeding the consensus estimate of $29.58 billion [1] - The adjusted EPS loss for Marathon Petroleum was $(0.24), an improvement from $(2.58) a year earlier, and better than the analyst consensus estimate of $(0.53) [1] - Aurora Innovation posted a first-quarter GAAP loss of 12 cents per share, which was in line with estimates [2] - QXO, Inc. proposed to acquire GMS for $95.20 per share in cash [2] - Toast (TOST) received a Buy rating from Truist Securities analyst Matthew Coad, with a price target of $48 [3] Stock Performance - Marathon Petroleum shares increased by 1.1% to settle at $167.52 [6] - Aurora Innovation shares rose by 2.1% to close at $5.40 [6] - QXO shares gained 1.4% to settle at $24.12 [6] - Toast shares experienced a 2.4% increase, closing at $42.49 [6]

Group 1 - The focus is on long-term growth and dividend growth investing, emphasizing the importance of profitability over low valuation [1] - The analysis prioritizes margins, free cash flow stability and growth, and returns on invested capital as key metrics for evaluating companies [1] - The approach involves thorough research of stocks within specific areas of competence, particularly high-quality companies [1]

Core Insights - Toast Inc (TOST) started 2025 with strong momentum, adding over 6,000 net locations in Q1 2025, totaling approximately 140,000 customer locations globally, reflecting a 25% year-over-year growth [1] - The company aims to achieve record net additions in the current quarter and expects 2025 to surpass 2024's full-year net additions [1] - Toast is focusing on expanding its presence in the U.S. SMB restaurant market, with only 10% penetration into its total addressable market (TAM) of 1.4 million locations, indicating significant long-term growth potential [1] - The company is also pursuing growth in three new areas: enterprise, international, and food & beverage retail, targeting over 10,000 locations by the end of 2025 in these segments [1] Technology and Innovation - Toast's AI-powered tools, such as Sous Chef and ToastIQ, are enhancing its competitive edge in restaurant technology [2] - The company has improved its reporting, payroll, and accounting tools, and introduced a Benchmarking tool to assist restaurants in managing costs [2] - These advancements position Toast as a full-stack solutions provider, which is expected to support its growth trajectory beyond the current quarter [2] Financial Projections - Toast projects a 26% growth in fintech and subscription gross profit for 2025 at the midpoint, with adjusted EBITDA estimated at $550 million and a 31% margin, reflecting a five percentage point increase from 2024 [3] Market Environment - Management is closely monitoring the macro environment, acknowledging the restaurant industry's sensitivity to consumer spending, labor inflation, and supply chain volatility [4] - A downturn in consumer spending or increased cost pressures could potentially impact restaurant technology budgets, affecting TOST's performance [4] Competitive Landscape - Competitor Lightspeed Commerce Inc. is pivoting towards North America's Retail and Europe's Hospitality sectors, reporting a 3% year-over-year increase in customer locations and a 6% rise in GTV for these customers [5][6] - Block, Inc. offers a comprehensive commerce ecosystem, including Square for Restaurants, which competes directly with TOST's offerings, generating $1.48 billion in transaction revenues, up 5.9% year over year [7][8] Stock Performance and Valuation - TOST shares gained 13.9% year to date, slightly underperforming the Internet-Software industry's growth of 14.2% [9] - The shares are currently trading at a price/book ratio of 12.34X, higher than the industry average of 6.49X [11] - The Zacks Consensus Estimate for TOST's earnings for 2025 has remained unchanged over the past 30 days [12]

Core Insights - Toast, Inc. (TOST) reported a strong first-quarter 2025 performance, with revenue increasing by 24.4% year-over-year to $1.34 billion and adjusted EBITDA reaching $133 million, reflecting a margin of approximately 32% [1][2] - The company is experiencing significant growth in annual recurring revenues, which reached $1.7 billion, a 31% increase year-over-year, and operates in about 140,000 locations, marking a 25% growth [3] - Toast has raised its full-year EBITDA outlook to around $550 million with a 31% margin, an increase from the previous estimate of $510-$530 million at a 30% margin [5] Financial Performance - Operating costs, excluding bad-debt charges, rose only about 12%, primarily due to increased spending on sales and marketing [2] - Free cash flow turned positive at $69 million, compared to a loss of $33 million a year ago [2] - Toast's adjusted EBITDA margin improved significantly, driven by gross profit growth and strict cost discipline [1][2] Market Position and Growth Potential - Toast has only 10% penetration into its total addressable market (TAM) of 1.4 million locations, indicating substantial long-term expansion opportunities [3] - The company is leveraging its scale to introduce new services, including AI-powered analytics and fintech products, which contribute to revenue without proportional cost increases [4] - Management anticipates record net additions in the current quarter, with expectations for 2025 to surpass 2024's full-year net additions [3] Competitive Landscape - Block (formerly Square) reported an adjusted EBITDA of $812.8 million for Q1 2025, with an operating margin of 8.1% [7] - Lightspeed Commerce (LSPD) achieved total revenues of $253.4 million in Q1 2025, with an adjusted EBITDA margin of 32% [9] - TOST's shares have increased by 61.4% over the past year, outperforming the Zacks Internet-Software industry's growth of 34.3% [12] Valuation Metrics - TOST trades at a forward price-to-sales ratio of 3.12X, which is lower than the industry's average of 5.76X [13] - The Zacks Consensus Estimate for TOST's earnings for 2025 has been rising over the past 60 days, indicating positive market sentiment [14]

Core Insights - Toast Inc. (TOST) and Lightspeed Commerce Inc. (LSPD) are key players in the point-of-sale (POS) solutions market, with Toast focusing on restaurants and Lightspeed serving both restaurants and retail, making them direct competitors in the hospitality tech sector [1][2] Company Analysis: Toast Inc. (TOST) - TOST ended the first quarter with approximately 140,000 customer locations globally, reflecting a 25% year-over-year growth, and added over 6,000 net locations in the same period [3][9] - The company has only 10% penetration into its total addressable market (TAM) of 1.4 million locations, indicating significant long-term growth potential [3] - TOST is expanding into three new growth areas: enterprise, international, and food & beverage retail, with a target of exceeding 10,000 locations in these segments by the end of 2025 [4] - The introduction of AI-powered tools, such as Sous Chef and ToastIQ, is enhancing TOST's platform and improving operational efficiency for restaurant operators [5] - Despite strong growth, TOST faces challenges such as a 3% year-over-year decline in gross payment volume (GPV) per location, indicating lower average transaction volumes [7] Company Analysis: Lightspeed Commerce Inc. (LSPD) - LSPD reported an 18% revenue increase in fiscal 2025, surpassing $1 billion in annual revenues for the first time [8] - The company is strategically focusing on North American retail and European hospitality, with customer locations in these markets increasing over 3% year-over-year [10] - LSPD is investing heavily in innovation, with a 35% increase in product development budget for fiscal 2026 compared to fiscal 2025 [11] - Transaction-based revenues for LSPD rose 14% to $157.8 million, with GPV increasing by 40%, showcasing strong growth in its payments segment [12] - However, LSPD is also facing macroeconomic challenges, with a revenue growth guidance of 10% to 12% for the current fiscal year, lower than the previous year's 18% growth [13] Market Comparison - TOST shares have appreciated by 5.2%, while LSPD shares have gained 11.7% [16] - Valuation metrics indicate that both companies are overvalued, with TOST trading at a Price/Book ratio of 13.28X compared to LSPD's 1.04X [18] - Analysts have slightly revised earnings estimates upward for TOST, while LSPD has seen a marginal downward revision for the current year [20][22] - Despite facing similar macro and competitive challenges, LSPD's diversified revenue base across multiple sectors makes it a more compelling investment option compared to TOST's restaurant-heavy model [22]

Group 1 - Toast's stock increased by 2.38% to $43.36, outperforming the S&P 500's daily gain of 0.96% [1] - Over the past month, Toast's shares have decreased by 0.33%, underperforming the Computer and Technology sector's gain of 2.53% and the S&P 500's gain of 0.5% [1] Group 2 - Upcoming earnings disclosure is expected to show an EPS of $0.23, a 1050% increase year-over-year, with projected revenue of $1.53 billion, reflecting a 23.45% rise [2] - For the full year, earnings are projected at $0.95 per share and revenue at $6.01 billion, representing increases of 3066.67% and 21.23% respectively from the prior year [3] Group 3 - Recent revisions to analyst forecasts for Toast are important as they indicate changing near-term business trends, with positive revisions suggesting a favorable outlook on business health and profitability [4] - Estimate revisions are correlated with near-term share price momentum, which is utilized in the Zacks Rank system to provide a rating [5] Group 4 - The Zacks Rank system, ranging from 1 (Strong Buy) to 5 (Strong Sell), has shown an average annual return of +25% for 1 stocks since 1988, with Toast currently holding a Zacks Rank of 3 (Hold) [6] Group 5 - Toast's Forward P/E ratio is 44.67, indicating a premium compared to the industry average Forward P/E of 27.81 [7] - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 54, placing it in the top 22% of over 250 industries [7][8]