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]

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]