Key Takeaways TOST shares jumped 78% in a year, outpacing sector gains and major index returns.Q2 revenues rose 25% to $1.55B, with a record 8,500 net new locations added.Management raised the 2025 fintech and subscription gross profit growth forecast to 29%.Toast, Inc. (TOST) shares have gained 78% in the past year, outperforming the Internet Software market and the Zacks Computer & Technology sector’s growth of 43.6% and 25.4%. The S&P 500 Composite has returned 17.8% over the same time frame. TOST is one ...

Core Insights - Toast Inc. (TOST) is expanding its presence across various geographies and segments, targeting not only small and medium-sized restaurants but also food & beverage retail and enterprise chains, currently supporting around 140,000 locations globally [1][9] - The company's strategy focuses on scaling locations, demonstrating growth in new markets, increasing platform adoption with a data and AI focus, and maintaining high standards while gradually expanding margins [2][7] Product and Technology Developments - Toast has developed an all-in-one platform tailored for the restaurant industry, leveraging AI to enhance usability and efficiency for operators [3] - The introduction of Sous Chef, an AI assistant for restaurant operators, is currently in pilot testing and aims to provide business insights and manage various operational tasks [4] - ToastIQ, an AI-powered intelligence engine, has shown positive impacts for early adopters, enhancing the platform's capabilities [5] Operational Enhancements - Recent updates for front-of-house staff include improvements to POS systems, kiosks, and kitchen displays, along with new tools for guest engagement such as Websites, Branded Apps, and AI-powered SMS Marketing [6] - The company has also introduced enhanced reporting, payroll, accounting tools, and a Benchmarking tool to help restaurants manage costs [6] Financial Performance - Toast has raised its full-year outlook, now expecting a 26% growth in fintech and subscription gross profit, with adjusted EBITDA estimated at $550 million and a 31% margin, reflecting a five-point increase from previous estimates [7][9] - TOST shares have gained 76.7% over the past year, outperforming the Zacks Internet-Software industry's growth of 37.2% [11] Valuation Metrics - TOST trades at a forward price-to-sales ratio of 3.2X, which is lower than the industry's average of 5.68X, indicating potential undervaluation [12] - The Zacks Consensus Estimate for TOST's earnings for 2025 has been rising over the past 60 days, suggesting positive market sentiment [13]