Shares of this software enterprise have surged 70% just this year.With the prospect of the Federal Reserve embarking on a path of lowering interest rates in the near term, investors might be eyeing businesses that have better growth prospects as a result. Toast (TOST 1.62%) certainly falls into this category.Since its initial public offering in late 2021, shares of the restaurant technology specialist have struggled and are currently off by 53% from their all-time high, which was established in November 202 ...

The latest trading session saw Toast (TOST) ending at $30.04, denoting a -0.27% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq increased by 0.78%. Heading into today, shares of the restaurant software provider had gained 6.39% over the past month, outpacing the Computer and Technology sector's gain of 1.87% and the S&P 500's gain of 1.67% in that time. Investors will be eagerly ...

Group 1 - Toast's stock has increased over 60% year-to-date, and a recent price increase in credit card processing fees could further enhance growth into 2025 [1][5] - The company raised its credit card processing fee to 0.23%, marking the first increase in 12 years [2] - Previous attempts to increase prices faced backlash, leading to a reversal and the resignation of the CEO, but the current increase allows restaurant owners to decide on passing costs to customers [3][4] Group 2 - The fee increase, while small, could generate significant revenue given Toast's projected processing of nearly $160 billion in gross payment volume this year [5] - Toast plans to implement a series of small, steady price changes as part of its strategy to gauge customer reactions [6] - The company is expanding its presence in the restaurant sector, currently serving about 120,000 locations out of 750,000 in the U.S., and has also entered international markets [7] Group 3 - Toast is diversifying into adjacent markets such as coffee shops and retail food and beverage, enhancing its service offerings [8] - The restaurant industry is experiencing growth, with sales up 3.7% year-over-year in September, outpacing non-restaurant retail sales [9] - The company's annualized recurring run rate (ARR) grew by 29% to $1.47 billion, indicating strong growth potential [11] Group 4 - Investors are encouraged to focus on ARR rather than price-to-sales ratios due to the low gross margin of fintech revenue [10] - The combination of price increases, geographic expansion, and growing restaurant spending positions Toast for continued strong growth [11] - Future monitoring of the impact of credit card processing fee changes on Toast's business is advised, as further price increases are anticipated [12]

Toast is on a clear path toward significant market-share gains. Toast (TOST -1.80%) is a restaurant technology company with products for processing payments, taking orders, and more. And one year from now, Toast stock is likely to be trading higher than it is today. Revenue is growing at more than 20% annually, and management is demonstrating that it knows how to run a profitable business. Those two things are encouraging enough, but there's one more thing that makes me even more optimistic about the long-t ...

Core Viewpoint - Toast provides a specialized service tailored to the restaurant industry, offering a competitive advantage, but faces significant challenges that may impact its stock performance [1] Group 1: Competition within the Payments Industry - Toast's focus on restaurant-related businesses gives it an edge over general fintech platforms like Square, which also offers tailored products for restaurants [2] - Square's extensive ecosystem may lead businesses to prefer it, creating challenges for Toast in customer retention [2] Group 2: Nature of the Restaurant Industry - The restaurant industry has a high turnover rate, with only about 20% of restaurants succeeding long-term and 60% failing within the first year [3] - Despite this, Toast's customer base grew by 29% to approximately 120,000 in Q2, and the company achieved profitability with earnings of $14 million [3] - The price-to-sales (P/S) ratio of just under 4 may attract investors, but the high turnover rate could hinder customer growth [4] Group 3: Macro Economy - The U.S. restaurant count has decreased from around 1 million pre-pandemic to approximately 749,000, highlighting the industry's struggles [5] - Menu prices have risen by 27% from February 2020 to June 2024, while salaries have not kept pace, leading consumers to reduce dining out [5] - Toast's 120,000 customers represent about 16% of the current U.S. market, indicating a shrinking addressable market [5] Group 4: International Expansion - Toast has expanded into Canada, Ireland, and the U.K., with plans for further international growth, though cultural challenges may impede this expansion [6] - Without a clear plan for the growth of its addressable market, it is difficult to assess Toast's future growth trajectory [6] Group 5: Investment Risks - While Toast has a competitive product and a notable customer growth rate, it faces significant competition and external pressures in a contracting industry [7] - International expansion may help sustain growth, but the performance outside the U.S. remains uncertain [7]

I've written about Toast (NYSE: TOST ) a few times as one of my favorite speculative stocks to cover. The company bridges the gap between cloud software and fintech payment solutions, while slowly but surely chugging towardsMy goal is to highlight the highest quality companies in the market, value or growth. I buy with a long-term time horizon, and am typically looking for companies with strong competitive advantages, solid management, and a history of creating shareholder value.https://www.tipranks.com/blo ...

In the latest market close, Toast (TOST) reached $29.37, with a -0.51% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.05%. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.18%.Shares of the restaurant software provider witnessed a gain of 6.76% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.5% and the S&P 500's gain of 2.76%.Investors will ...

The latest trading session saw Toast (TOST) ending at $29.03, denoting a +1.04% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.47%. Elsewhere, the Dow saw an upswing of 0.79%, while the tech-heavy Nasdaq appreciated by 0.28%. Coming into today, shares of the restaurant software provider had gained 7.4% in the past month. In that same time, the Computer and Technology sector gained 3.88%, while the S&P 500 gained 3.48%. The investment community wi ...

Toast (TOST) closed at $28.98 in the latest trading session, marking a +0.63% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.71%. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq appreciated by 0.6%. Prior to today's trading, shares of the restaurant software provider had gained 21.62% over the past month. This has outpaced the Computer and Technology sector's gain of 9.96% and the S&P 500's gain of 6.41% in that time. Market participants will ...

I recently joined The REIT Forum and if you are looking for more investment ideas like this one, get them exclusively at The REIT Forum with access to our subscriber only portfolios. I last wrote about Toast (NYSE: TOST ) in August, where I reiterated my "buy" rating as I believed there was significant upside ahead after the management laid its long-term financial targets on its Amrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for the family fund. The ...