Core Insights - Toast, Inc. has launched the Toast Changemakers Program, a $5 million initiative over five years aimed at combating food insecurity in the U.S. [1][9] - The program will provide $150,000 in grants to 15 restaurants, each receiving $10,000 to support their local food security efforts [3][9] - Toast projects a 29% year-over-year growth in fintech and subscription gross profit for 2025, exceeding its previous forecast of 25-27% [5][9] Industry Context - In 2023, 13.5% of U.S. households faced food insecurity, highlighting the critical role of restaurants in community support through food donations and charitable contributions [2] - According to the National Restaurant Association, 84% of restaurant operators made charitable contributions from 2020 to 2023, with 75% donating food [2] Company Strategy - Toast is expanding its market presence, recently launching in Australia, marking its fourth international market, and onboarding its first customer, Graze Craze [6] - The company aims to penetrate new customer segments across enterprise and food and beverage retail, with expectations for net additions in 2025 to exceed those of 2024 [6] Financial Performance - Toast's stock has gained 39.1% over the past year, outperforming the Zacks Internet-Software industry's growth of 38% [8]

Core Insights - Toast has partnered with celebrity chef Tyler Florence to launch the Toast Changemakers Program aimed at addressing food insecurity [1] Group 1: Company Initiatives - The Toast Changemakers Program is designed to combat food insecurity by leveraging the influence and resources of Tyler Florence [1] - This initiative reflects Toast's commitment to social responsibility and community support [1] Group 2: Industry Context - Food insecurity remains a significant issue in many communities, prompting companies to take action [1] - Collaborations between food industry leaders and chefs can enhance awareness and drive solutions to food-related challenges [1]

Company Overview - Toast, Inc. (NYSE: TOST) provides a cloud-based platform specifically designed for the restaurant industry, offering point-of-sale systems, operations and team management tools, back-office solutions, and integrated financial technology products [2]. Performance Insights - The recent quarterly performance of Toast has been described as excellent, despite the overall weakness in restaurant stocks, which has negatively impacted Toast's stock performance [1]. - The stock has shown significant appreciation this year, indicating strong underlying value despite current market challenges [1]. Market Position - Toast is recognized for its proprietary technology in the restaurant sector, distinguishing itself from competitors who may offer more commoditized solutions [2]. - The company is perceived to be gaining traction in the market, with potential for substantial growth as it continues to innovate and expand its offerings [2].

Core Viewpoint - Toast (TOST) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Outlook - For Toast, the upgrade reflects an improvement in its underlying business, which is expected to drive stock price appreciation [5]. - The Zacks Consensus Estimate for Toast indicates an expected earnings of $0.97 per share for the fiscal year ending December 2025, with a 5.1% increase in estimates over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks based on earnings estimates into five groups, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - The upgrade of Toast to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Insights - Toast Inc. is recognized as a promising tech stock, with a focus on AI innovation and international expansion as part of its strategic priorities [1][2] - The company reported a 31% year-over-year increase in gross profit for Q2, positioning it to add over $400 million in annual recurring revenue [2] - Toast aims to enhance its total addressable market through AI-driven products, including Sous Chef and an AI Marketing assistant, while also attracting more enterprise customers [3] Company Overview - Toast Inc. provides an all-in-one restaurant technology platform that includes a cloud-based point-of-sale (POS) system and management tools for food service businesses [4] - The platform integrates hardware and software to manage various functions such as order taking, payment processing, and loyalty programs [4] Growth and Innovation - The company experienced record net additions of 8,500 in Q2, indicating strong momentum that is expected to continue in the latter half of the year [3] - Investments in AI and R&D are prioritized to accelerate growth and enhance product capabilities [2][3]

Group 1 - Toast's stock closed at $39.95, down 2.06% from the previous day, underperforming the S&P 500 which lost 0.05% [1] - Over the past month, Toast's stock has decreased by 5.14%, while the Computer and Technology sector gained 5.42% and the S&P 500 gained 3.44% [1] Group 2 - Analysts forecast Toast to report an EPS of $0.25, a 257.14% increase from the same quarter last year, with revenue expected to be $1.59 billion, reflecting a 21.87% year-over-year increase [2] - For the entire fiscal year, earnings are projected at $0.97 per share and revenue at $6.07 billion, indicating increases of 3133.33% and 22.44% respectively from the previous year [3] Group 3 - Recent modifications to analyst estimates for Toast are crucial as they indicate changing near-term business trends, with positive revisions seen as a favorable sign for the business outlook [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Toast at 3 (Hold), with the consensus EPS estimate remaining unchanged over the past month [6] Group 4 - Toast is trading at a Forward P/E ratio of 42.05, which is higher than the industry average Forward P/E of 32 [7] - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [7]

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. ...

Group 1 - Toast, Inc. (NYSE:TOST) is recognized as one of the best growth stocks under $50, with a Buy rating maintained by analysts and a price target of $52.00 from Compass Point [1] - UBS analyst Timothy Chiodo also maintains a Buy rating with a price target of $55.00, while Needham sets a higher target of $60.00, indicating strong bullish sentiment [2] - The consensus rating for Toast, Inc. is Moderate Buy, with a median price target of $40.38, suggesting a potential upside of 26.30% from current levels [2] Group 2 - Toast, Inc. specializes in consumer payment applications for restaurants, providing a range of products including kiosks, terminals, guest-facing displays, and system accessories [3] - The company's offerings extend to reporting and analytics, point of sale systems, kitchen display systems, and online ordering and delivery solutions [3]

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]