The 2026 Voice of the Retail Industry Survey: How U.S. Retailers are Feeling About Inflation, Expansion, AI, and More Toast (NYSE: TOST) released its 2026 Voice of the Retail Industry Survey. Toast annually surveys hundreds of operators working in retail, and this year’s results show the industry is cautious and resilient — operators remain positive but are tightening control amid an uncertain landscape. The last year has seen persistent hikes in inflation and macroeconomic volatility, but America's convenience stores, bottle shops, and grocery stores (CBGs) remained largely confident.
Our data shows that operators still expect to grow, but they’re looking to shore up their foundation by protecting margins, simplifying operations, and employing more efficient tech.1 This was a blind survey of operators and decision-makers with fewer than 16 locations in the United States and included both Toast and non-Toast customers.
Read the full 2026 Voice of the Retail Industry Survey on the Data by Toast website.
Key takeaways from the 2026 Voice of the Retail Industry Survey:
Among the 340 operators surveyed:
Operators are feeling positive: 94% rated their business health good or excellentExpansion is on the table: 66% say they're likely to open a new location in the next year31% say they’re looking to simplify their operations in their top three business goals, up 12 points year-over-year2Inflation remains a concern, but inventory management (up 6 points year-over-year) is the biggest pain pointIt’s an AI world: Nine in ten operators are experimenting with AIWhat are retail operators focused on this year?
The 2026 data shows they're also focused on making their operations more efficient. “Simplify operations” as a goal jumped significantly among all operators, up 12 percentage points overall. Profitability (32%), “improve employee productivity” (27%), and “start using new tech” (25%) were the other top goals of retailers.
What's the bottom line for retail in 2026?
In short: Retail operators are resilient, still believe in their businesses, and still plan to grow. Overall, the survey data showed they’re looking to grow more efficiently — with new tech, AI adoption, and a careful eye on costs — amid a difficult macroeconomic climate.
Read the full 2026 Voice of the Retail Industry Survey on the Data by Toast website.
Methodology
1To help better understand the retail industry, Toast conducted a blind survey of 340 CBG retail (convenience, grocery, or bottle shop) decision-makers operating 16 or fewer locations in the United States, including both Toast and non-Toast customers, from April 3, 2026, to April 20, 2026. Respondents did not know Toast was fielding the study. Using a standard margin of error calculation, at a confidence interval of 95%, the margin of error of +/- 5%.
2Methodology: From April 18, 2025 through May 13, 2025, Toast polled 492 retail decision-makers in the United States. Survey respondents consist of retailers with 16 or fewer locations and include a mix of convenience stores, bottle shops, and grocery stores. While some Toast customers are included in this survey, it is a broad view of independent retailers. This is a blind survey, meaning respondents did not know that Toast was fielding the study. Insights from this survey are directional and should not be interpreted as precise. The margin of error is +/- 5%
About Toast
Toast [NYSE: TOST] is a global technology platform built for restaurant and retail businesses. From the busiest local restaurants and shops to large hospitality brands, Toast helps owners and operators manage their businesses more efficiently, drive guest demand, and build lasting success.
Toast integrates software, agentic AI, payments, financial technology solutions, and hardware with a broad partner ecosystem. Powering billions of purchases throughout local commerce, Toast delivers the precision and innovation required for modern restaurant and retail environments. For more information, visit www.toasttab.com.
TOST-CORP
View source version on businesswire.com: https://www.businesswire.com/news/home/20260909571694/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Burford Capital (NYSE:BUR – Get Free Report) and Toast (NYSE:TOST – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Risk and Volatility Burford Capital has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Toast has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.
Insider & Institutional Ownership 82.9% of Toast shares are held by institutional investors. 8.9% of Burford Capital shares are held by insiders. Comparatively, 10.0% of Toast shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability This table compares Burford Capital and Toast’s net margins, return on equity and return on assets. Net Margins Return on Equity Return on Assets Burford Capital 15.14% 10.24% 4.35% Toast 7.14% 23.90% 15.77% Earnings and Valuation This table compares Burford Capital and Toast”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Burford Capital -$1.63 billion -0.59 $62.57 million ($7.71) -0.57 Toast $6.15 billion 2.78 $342.00 million $0.78 42.68 Toast has higher revenue and earnings than Burford Capital. Burford Capital is trading at a lower price-to-earnings ratio than Toast, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings This is a breakdown of current ratings and target prices for Burford Capital and Toast, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Burford Capital 2 2 2 0 2.00 Toast 0 11 16 0 2.59 Burford Capital presently has a consensus price target of $9.33, suggesting a potential upside of 111.88%. Toast has a consensus price target of $39.12, suggesting a potential upside of 17.50%. Given Burford Capital’s higher possible upside, analysts clearly believe Burford Capital is more favorable than Toast.
Summary Toast beats Burford Capital on 12 of the 14 factors compared between the two stocks.
(Get Free Report)
Burford Capital Limited provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds; legal risk management services; lower risk legal finance business focusing on pre-settlement litigation matters with lower risk and lower expected returns; post-settlement finance; and complex strategies in which it acts as a principal and acquires assets that are mispriced. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance. Burford Capital Limited was incorporated in 2009 and is based in Saint Peter Port, Guernsey.
About Toast (Get Free Report)
Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, and India. The company offers software products for restaurant operations and point of sale, such as Toast POS, Toast now, multi-location management, kitchen display system, Toast mobile order and pay, Toast catering and events, Toast invoicing, Toast tables, and restaurant retail; and hardware products, including Toast flex, Toast flex for guest, Toast go 2, Toast tap, kiosks, and Delphi by Toast. It provides toast online ordering and toast takeout, first-party delivery toast delivery services, and third-party delivery integrations and orders hub; and loyalty, email marketing, and toast gift cards. In addition, the company offers payroll and team management, Sling by Toast, Toast pay card and payout, and tips manager, as well as partner-enabled products comprising insurance and benefits; supply chain and accounting products, such as xtraCHEF by toast; and financial technology solutions consisting of payment processing, toast capital, and purchase plans. Further, it offers reporting and analytics, Toast shop, and Toast partner connect and application programming interfaces. The company was formerly known as Opti Systems, Inc. and changed its name to Toast, Inc. in May 2012. Toast, Inc. was incorporated in 2011 and is headquartered in Boston, Massachusetts.
Receive News & Ratings for Burford Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Burford Capital and related companies with MarketBeat.com's FREE daily email newsletter.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Toast (TOST - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Toast currently has an average brokerage recommendation (ABR) of 1.72, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 32 brokerage firms. An ABR of 1.72 approximates between Strong Buy and Buy.
Of the 32 recommendations that derive the current ABR, 20 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 62.5% and 3.1% of all recommendations.
Brokerage Recommendation Trends for TOST
Check price target & stock forecast for Toast here>>>
The ABR suggests buying Toast, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is TOST Worth Investing In?Looking at the earnings estimate revisions for Toast, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.41.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Toast. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Toast.
It has been about a month since the last earnings report for Toast (TOST - Free Report) . Shares have lost about 2.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Toast due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Toast Q2 Earnings Beat on ARR and Location Growth, Outlook RaisedToast reported second-quarter 2026 earnings of 34 cents per share, beating the Zacks Consensus Estimate of 32 cents. Revenues rose 23.1% year over year to $1.91 billion and beat the consensus mark by $35.08 million, a 1.9% surprise.
Growth was led by subscription and financial technology solutions, supported by a larger location base and continued product adoption. Annualized recurring run-rate increased 25% to $2.41 billion, while Toast added a record 9,500 net locations.
Toast's Revenue Streams Deliver Broad-Based GrowthSubscription services revenues increased 27.8% year over year to $290 million. Financial technology solutions revenues rose 23% to $1.57 billion, while hardware and professional services revenues increased 2.1% to $48 million.
GAAP subscription and financial technology solutions gross profit advanced 30.9% to $585 million. On a non-GAAP basis, these recurring gross profit streams increased 28.2% to $595 million, reflecting growth in both software and payments economics.
Toast Expands Locations and Payment VolumeTotal locations increased 22% year over year to approximately 180,000. Gross Payment Volume rose 22% to $60.7 billion, while GPV per location was flat. Management noted better-than-expected core GPV, helped by strong same-store sales trends and a modest World Cup benefit late in June.
SaaS ARR increased 27%, while payments ARR grew 23%. Total take rate reached 98 basis points, up 5 basis points year over year. Non-payments fintech solutions, led by Toast Capital, generated $57 million of gross profit and contributed 9 basis points to take rate.
Toast Advances AI and New Market ExpansionToast IQ Grow, the company's digital marketing agent, is on track to become its fastest-growing product to $10 million in ARR. Management said early adoption has been strong, with the product already operating at positive margins and showing improving gross margins as it scales.
The company is also investing across enterprise, international and retail markets. ARR from these new total addressable markets is expected to nearly double to $200 million in 2026. Recent developments include Toast becoming an endorsed food and beverage vendor for Best Western, expanding its TGI Fridays relationship in the U.K. and launching initial fuel-payment deployments.
Toast Delivers Margin Gains Despite Higher InvestmentAdjusted EBITDA increased 38% year over year to $221 million, and the margin expanded 240 basis points to 37%.
Sales and marketing expenses rose 22% on a non-GAAP basis as Toast added capacity across its core business and new markets. Research and development expenses increased 23%, reflecting investment in agentic AI, vertical-specific products and internal AI tools aimed at improving productivity.
Toast Maintains Liquidity While Repurchasing SharesFree cash flow totaled $130 million, down from $208 million a year earlier, mainly because Toast chose to hold more hardware inventory. Net cash provided by operating activities was $144 million compared with $223 million in the prior-year quarter.
Cash and cash equivalents plus marketable securities totaled $1.71 billion as of June 30. Toast repurchased more than 19 million shares for $486 million through the first half of 2026, leaving approximately $100 million under its authorization.
Toast Raises Its 2026 OutlookFor the third quarter, Toast expects non-GAAP subscription services and financial technology solutions gross profit of $615-$625 million, representing 22%-24% year-over-year growth. Adjusted EBITDA is projected at $210-$220 million.
For 2026, recurring gross profit guidance was raised to $2,325-$2,355 million, implying 23%-25% growth compared with the prior 21%-23% outlook. Adjusted EBITDA guidance increased to $805-$825 million from $790-$810 million.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresCurrently, Toast has a strong Growth Score of A, a score with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Toast has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
BNP Paribas analyst Thomas Poutrieux downgraded Toast Inc (NYSE:TOST) from Outperform to Neutral and cut the price target from $38 to $35. Toast closed at $33.59 on Tuesday. See how other analysts view this stock. B of A Securities analyst Arnaud Lehmann downgraded Amrize AG (NYSE:AMRZ) from Neutral to Underperform and slashed the price target from $50 to $40. Amrize shares closed at $42.81 on Tuesday. See how other analysts view this stock. TD Cowen analyst Tara Bancroft downgraded EyePoint, Inc. (NASDAQ:EYPT) from Buy to Hold and cut the price target from $20 to $4. EyePoint closed at $4.58 on Tuesday. See how other analysts view this stock. Considering buying TOST stock? Here’s what analysts think:
Photo via Shutterstock
Trending
Market News and Data brought to you by Benzinga APIs
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Toast (TOST - Free Report) Toast, Inc. is a cloud-based digital technology platform built for the restaurant community, increasingly targeting restaurant and retail businesses. The company offers SaaS products, integrated payments and fintech, restaurant-grade hardware and a partner ecosystem that connects front- and back-of-house workflows across dine-in, takeout, delivery, catering and retail. Incorporated in Delaware in December 2011 (Opti Systems, Inc.) and renamed in May 2012, Toast is headquartered in Boston, MA.
TOST is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. TOST has a Momentum Style Score of A, and shares are up 8.9% over the past four weeks.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.06 to $1.41 per share. TOST also boasts an average earnings surprise of +2.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TOST should be on investors' short list.
Shares of Toast (TOST -0.06%) have largely underperformed since the company's public market debut in 2021. The restaurant-technology business may be moving into a new era, though, and investors might see Toast reheated soon.
Premium Feature
Moneyball Superscore
81/100
Today's Change
(
-0.06
%) $
-0.02
Current Price
$
35.15
Toast's fundamentals are looking better. The company beat second-quarter expectations, and its earnings per share (EPS) almost doubled year over year. Toast raised its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for Q3 to $220 million. A slew of analysts increased their price targets on the good news.
The company continues to add new restaurants to its customer base while simultaneously increasing the number of transactions it processes. It's also investing in artificial intelligence (AI) tools that will help customers with order taking and administrative tasks, and generate valuable customer insights. Lastly, Toast expanded its integrations with Alphabet's Google and entered into a new partnership with the Dutch payments company Adyen.
Image source: The Motley Fool.
Investors have been scared off by the consistent insider selling, including by the CEO and chief revenue officer. The company's valuation is still a bit rich in my opinion. Despite the stock declining 15% in the past year and more than 44% since its initial public offering (IPO), the trailing price-to-earnings (P/E) ratio still sits in the mid-40s.
The company is competing with powerhouse Square, which Block owns. Square has a slight advantage in market share, but Toast could gain ground as it focuses on its Google integration and partnerships.
Toast has an expanding platform and customer base; it added 9,500 new net customers in its latest quarter. I'm cautiously optimistic that there is room for this stock to run over the next few years as its metrics continue to improve. Investors will still need a bit of patience and appetite for Toast's volatility, however. Ultimately, I like where Toast is heading.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adyen, Alphabet, Block, and Toast. The Motley Fool has a disclosure policy.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Toast (TOST - Free Report) Toast, Inc. is a cloud-based digital technology platform built for the restaurant community, increasingly targeting restaurant and retail businesses. The company offers SaaS products, integrated payments and fintech, restaurant-grade hardware and a partner ecosystem that connects front- and back-of-house workflows across dine-in, takeout, delivery, catering and retail. Incorporated in Delaware in December 2011 (Opti Systems, Inc.) and renamed in May 2012, Toast is headquartered in Boston, MA.
TOST is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. TOST has a Growth Style Score of A, forecasting year-over-year earnings growth of 58.4% for the current fiscal year.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.06 to $1.41 per share. TOST also boasts an average earnings surprise of +2.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TOST should be on investors' short list.
Jonathan Vassil, Chief Revenue Officer of Toast, Inc. (TOST +0.19%), sold 13,931 shares of Class A Common Stock on August 19, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold (directly held)13,931Transaction value$501,655Post-transaction shares154,235Post-transaction shares (directly held)69,966Post-transaction shares (indirectly held)84,269Post-transaction value$5.42 millionTransaction value based on SEC Form 4 weighted average sale price ($36.01); post-transaction value based on August 19, 2026 market close ($35.16).
Key questionsWhat was the nature of this derivative activity?
The transaction involved the exercise of 13,931 stock options at a strike price of $17.33 and $17.38, with the resulting shares sold immediately at a weighted average price of $36.01. Jonathan Vassil continues to hold 451,111 direct derivative securities, which include both vested and unvested awards.How does this sale align with current market valuation?
The weighted average sale price of $36.01 was higher than the $35.16 at the August 19, 2026 market close. This disposal occurred against a backdrop of a -16% one-year total return, although shares are up over 50% in the past three months as of the transaction date. What is the extent of the insider's remaining beneficial ownership?
Vassil maintains a significant equity interest in the company through a combination of 69,966 direct shares, 84,269 shares held indirectly by a grantor retained annuity trust, and the aforementioned 451,111 stock options. The current direct and indirect stock position represents an insider ownership stake of 0.0266%.Company OverviewMetricValueShare Price (as of market close 2026-08-20)$35.32Market Capitalization$20.5 billionRevenue (TTM)$6.8 billionNet Income (TTM)$486.0 millionCompany SnapshotToast, Inc. delivers a comprehensive cloud-based digital technology platform specifically designed for the restaurant industry, featuring an extensive product suite that includes the Toast Point of Sale (POS) system, Toast Flex terminals, and integrated hardware solutions that serve as foundational technology infrastructure for small business operations.The company generates revenue through a software-as-a-service (SaaS) model, licensing its cloud-based platform and point-of-sale solutions to small business operators, while also deriving revenue from hardware sales, payment processing services, and value-added software features that enhance operational efficiency.Toast serves small businesses across the United States and internationally, targeting independent and multi-unit operators seeking integrated digital solutions to streamline order management, payment processing, kitchen operations, and customer engagement.Toast, Inc. operates as a leading provider of cloud-based restaurant management software with a market cap of $20.5 billion and trailing 12-month revenue of $6.8 billion, demonstrating significant scale within the restaurant technology sector.
The company's competitive advantage derives from its vertically integrated platform approach, combining point-of-sale systems, payment processing, kitchen display systems, and customer engagement tools into a unified ecosystem designed specifically for restaurant operations. With 6,500 employees and a presence across North America and internationally, Toast has established itself as a critical infrastructure provider for the modern restaurant industry.
What this transaction means for investorsChief Revenue Officer Jonathan Vassil's Aug. 19 sale of Toast stock came at a time when shares soared more than 50% in the past three months. That said, the timing was opportune for him since this was a non-discretionary transaction executed as part of a pre-arranged Rule 10b5-1 plan, established in March of 2026.
Such plans allow insiders to sell shares at predetermined times to avoid concerns of trading on non-public information. Moreover, Vassil retains a sizable equity stake in Toast, post transaction. His ~154,000 shares combined with over 450,000 stock options ensure continued alignment with shareholder interests.
Toast stock has been on an upswing recently thanks to strong business performance. In the second quarter, the company reported revenue of $1.9 billion, up from $1.6 billion in 2025, as it experienced a 22% year-over-year increase in new customer locations. This helped it achieve net income of $154 million compared with $80 million in the prior year.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Toast. The Motley Fool has a disclosure policy.
FinTech platform Adyen has expanded its partnership with restaurant/hospitality/retail tech company Toast.
The expansion will bring the two companies’ relationship into the U.S. following collaborations throughout Ireland, the U.K., Canada and Australia, Adyen said in a news release Monday (Aug. 10).
“Speed, control, and reliability matter, especially in service-based businesses like restaurants, retail, or hospitality. When a guest is waiting, every second counts,” said Blake Breathitt, Adyen senior vice president and global co-head of strategy. “Operators need hardware and systems that just work. Toast adding Adyen in the U.S. market is a testament to the growth of our relationship, and it speaks to what our global platform makes possible for platforms and their customers: faster settlement, allowing guests to pay how they want to, and the ability to grow internationally.”
The release added that Toast’s platform—which includes point of sale systems, payments, online ordering, and back-of-house functions—relies on FinTech offerings that can support high-volume businesses across multiple markets.
Adyen reduces integrations, stability issues and risk, all of which are important as brands expand and digitize their operations, the company said.
“At Toast, we value our foundation of strong, strategic partnerships, and Adyen has been a cornerstone of how we deliver reliable, scalable payments services across international markets,” said Michel Rbeiz, general manager, FinTech at Toast. “Adding Adyen to our U.S. payments ecosystem is a natural expansion of that relationship, as we offer operators stability in processing and enable them to stay focused on running successful businesses and delighting their guests.”
PYMNTS CEO Karen Webster spoke earlier this summer with Karan Katyal, Adyen’s head of global agentic commerce, who said the concept of agentic commerce is “at version 0.5 … We are in the earliest of early days.”
That’s partially because agentic commerce isn’t a single product that can be shipped, with several models being developed at once, all with their own technical demands, he said.
“Fragmentation will continue for quite some time,” Katyal said. “Agentic commerce is really almost like a direction of travel.”
In other words, it is not a destination someone arrives at but a “heading you point toward while competing protocols, onboarding flows, checkout requirements and payment methods all sort themselves out underneath you,” as the report put it.
Jonathan Vassil, the chief revenue officer of Toast, Inc. (TOST +3.51%), sold 4,700 shares of Class A Common Stock on August 5, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares sold4,700Transaction value$169,294Post-transaction shares (total)154,235Post-transaction shares (directly held)69,966Post-transaction shares (indirectly held)84,269Transaction value based on SEC Form 4 weighted average sale price ($36.02); post-transaction value based on the August 5 market close ($34.80).
Key questionsWhat was the mechanism behind this disposition?
The transaction was a "same-day" exercise and sell, where Vassil exercised 4,700 options at strike prices of $17.33 and $17.38, and immediately sold them at a weighted average price of $36.02. This activity was pre-scheduled under a Rule 10b5-1 trading plan adopted on March 13.How does this affect the insider's total exposure to the company?
Following the sale, Vassil retains approximately 154,235 shares across direct and indirect accounts. Furthermore, the insider continues to hold close to 500,000 derivative securities.What is the breakdown of the indirect equity holdings?
The reported 84,269 indirect shares are held specifically by the Jonathan S. Vassil Grantor Retained Annuity Trust #1, a structure typically utilized for estate and tax planning rather than immediate market liquidity.How has the stock performed leading up to this transaction?
Toast shares were priced at $34.80 at the August 5 market close, reflecting a one-year return of -20% as of that date. Company OverviewMetricValueShare Price (as of market close 2026-08-06)$34.72Market Capitalization$20.1 billionRevenue (TTM)$6.8 billionNet Income (TTM)$486.0 millionCompany SnapshotToast, Inc. delivers a comprehensive cloud-based digital technology platform specifically designed for the restaurant sector, featuring a suite of hardware and software solutions including the Toast Point of Sale (POS) system, Toast Flex terminals, and integrated kitchen management tools that serve as primary revenue generators.The company operates a subscription-based and transaction-fee business model, generating recurring revenue from software licensing, cloud services, and hardware sales while capturing incremental revenue through payment processing and value-added services for restaurant operators.Toast serves restaurant operators across the United States and Ireland, ranging from independent establishments to multi-unit operators, positioning itself as a critical infrastructure provider for the foodservice industry.Toast, Inc. operates as a leading cloud-based software infrastructure provider for the restaurant industry, with a market capitalization of $20.1 billion and TTM revenues of $6.8 billion. The company leverages its integrated platform combining point-of-sale systems, kitchen management, and payment processing to create substantial switching costs and cross-selling opportunities within its customer base. Toast's competitive positioning is reinforced by its comprehensive, purpose-built solution architecture that addresses the complex operational requirements of modern restaurant businesses.
What this transaction means for investorsThe options behind this sale were struck at $17.33 and $17.38, so with Toast near $36, Vassil was converting a grant worth roughly $19 a share in profit, old equity finally cashed in under a plan he set back in March. He sold a modest slice, kept more than 150,000 shares plus close to 500,000 in options, and even routed part of his holdings through an estate-planning trust, so this is very likely just portfolio housekeeping by a chief revenue officer.
Meanwhile, Toast stock has had a very volatile stretch over the past year, plunging over 50% from last year's highs through May, before recouping some losses and surging over 50% since. Bolstering performance in recent months, the company added a record 9,500 net locations last quarter, grew annual recurring revenue 25% to $2.4 billion, and nearly doubled net income to $154 million. CEO Aman Narang pointed to "the strength we have across the business." The reason the market is staying cool might be partly Toast's own choice, since management is plowing its earnings back into AI, international, and retail rather than letting profit expand faster. That reinvestment is the real swing factor, because Toast is betting near-term margin to chase a much larger market, and long-term investors should stay focused on the payoff.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Toast. The Motley Fool has a disclosure policy.
Elena Gomez, the president and CFO of Toast, Inc. (TOST +3.51%), sold 17,076 shares of Class A Common Stock on August 5 and August 6, according to an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$602,441Shares sold17,076Post-transaction shares (directly held)168,074Post-transaction value$5.8 millionTransaction value based on SEC Form 4 weighted average sale price ($35.28); post-transaction value based on the August 6 market close ($34.72).
Key questionsWhat was the mechanism for this transaction?
The sale was conducted under a Rule 10b5-1 trading plan adopted by Gomez on December 12, 2025. This allows for automated, scheduled transactions that help insiders manage liquidity while adhering to regulatory standards regarding material non-public information.How does this impact the insider's long-term position?
The sale of 17,076 shares reduced the CFO's direct Class A Common Stock position by 9% to nearly 168,000 shares. In addition to these direct holdings, the reporting owner also holds derivative securities that contribute to her total beneficial ownership interest.What has been the recent share price trajectory for Toast?
As of the August 6 market close, shares of Toast were priced at $34.72. This represents a 24% decline over the 12 months preceding the transaction date.What is the scale of Elena Gomez's remaining equity stake?
Despite the recent disposition, Gomez maintains a direct ownership stake representing approximately 0.03% of the company's outstanding equity. This position carries a market valuation of $5.84 million as of the August 6 market close.Company OverviewMetricValueShare Price (as of market close 2026-08-06)$34.72Market Capitalization$20.1 billionRevenue (TTM)$6.8 billionNet Income (TTM)$486.0 millionCompany SnapshotToast delivers a comprehensive cloud-based digital technology platform specifically designed for the restaurant sector, offering an extensive product suite that includes hardware solutions such as the Toast Point of Sale (POS) system and Toast Flex, which functions as an on-counter order and payment terminal, server workstation, guest kiosk, kitchen display system, and order fulfillment device.The company operates a subscription-based software business model supplemented by hardware sales and ancillary services, generating recurring revenue from restaurant operators who rely on Toast's integrated platform for point-of-sale, payment processing, inventory management, and operational efficiency.Toast primarily serves independent and multi-unit restaurant operators across the United States and Ireland, targeting establishments seeking comprehensive digital transformation solutions to streamline operations and enhance customer engagement.Toast, Inc. is a leading provider of cloud-based restaurant management software with a market capitalization of $20.1 billion and TTM revenue of $6.8 billion, demonstrating significant scale within the restaurant technology sector. The company's competitive advantage derives from its vertically integrated platform combining point-of-sale systems, payment processing, and operational management tools specifically engineered for restaurant workflows. With a presence across North America and Ireland, Toast maintains a strong position in the digital transformation of the foodservice industry.
What this transaction means for investorsUnlike a low-strike option cash-in, as was the case with a Toast CRO transaction last week, this was a straight sale of shares Gomez already held, run through a plan she set in December. That plan sells on a schedule regardless of price, and Gomez kept close to 168,000 shares, so her stake stays substantial.
The disconnect between the stock and the business is more notable here. On the latest earnings call, Gomez boasted that firm has cleared what investors call the Rule of 50, with its recurring gross profit growth plus operating margin hitting 57%, a mark few software companies reach and a sign of unusual balance between growth and profit. Meanwhile, annual recurring revenue rose 25% to $2.4 billion. CEO Aman Narang credited "the strength we have across the business." Shares have recovered from lows in May, but they’re still down 20% over the past year. Ultimately, a company clearing the Rule of 50 while its stock drops is the kind of gap that either closes as results keep compounding or signals the market sees a risk the numbers do not yet show. Upcoming quarters should clarify where exactly Toast stands.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Toast. The Motley Fool has a disclosure policy.
, /PRNewswire/ -- Adyen, the global financial technology platform of choice for leading businesses, today announced an expansion of its partnership with Toast, the digital technology platform built for hospitality, restaurants, and retail businesses. As part of the agreement, Adyen and Toast will expand their relationship into the U.S. to support Toast, which in the last 12 months ending June 30, 2026 facilitated more than $215 billion in gross payment volume (GPV) across approximately 180,000 locations worldwide.
Since 2021, Adyen has partnered with Toast to enable scaling across Ireland, the U.K., Canada and Australia, with a single, reliable solution.
"Businesses need technology that helps them stay competitive, not systems that slow them down," said Blake Breathitt, SVP, Global Co-Head of Strategy at Adyen. "Speed, control, and reliability matter, especially in service-based businesses like restaurants, retail, or hospitality. When a guest is waiting, every second counts. Operators need hardware and systems that just work. Toast adding Adyen in the U.S. market is a testament to the growth of our relationship, and it speaks to what our global platform makes possible for platforms and their customers: faster settlement, allowing guests to pay how they want to, and the ability to grow internationally."
Toast's platform, including POS systems, online ordering, payments, and back-of-house operations, depends on a strong financial technology backbone capable of supporting high-volume businesses across multiple markets. Adyen cuts down integrations, stability issues and risk — capabilities that are increasingly critical as brands expand and digitize their operations.
"At Toast, we value our foundation of strong, strategic partnerships, and Adyen has been a cornerstone of how we deliver reliable, scalable payments services across international markets," said Michel Rbeiz, General Manager, Fintech at Toast. "Adding Adyen to our U.S. payments ecosystem is a natural expansion of that relationship, as we offer operators stability in processing and enable them to stay focused on running successful businesses and delighting their guests."
As Adyen cements its position as one of the world's largest financial technology companies, partnerships like Toast underscore the power of its unified model. Built entirely in-house, Adyen brings financial services including issuing, capital, and business accounts together in one system. This foundation also creates long-term opportunities for leading enterprises like Toast to offer deeper financial products directly within their vertical technology platform.
About Adyen
Adyen (AMS: ADYEN) is the financial technology platform of choice for leading companies. By providing end-to-end payment capabilities, data-driven insights, and financial products in a single global solution, Adyen helps businesses achieve their ambitions faster. With offices around the world, Adyen works with the likes of Meta, Uber, H&M, eBay, and Microsoft. The cooperation with Toast as described in this merchant update underlines Adyen's continuous growth with current and new merchants over the years.
About Toast
Toast [NYSE: TOST] is a global technology platform built for restaurant and retail businesses. From the busiest local restaurants and shops to large hospitality brands, Toast helps owners and operators manage their businesses more efficiently, drive guest demand, and build lasting success.
Toast integrates software, agentic AI, payments, financial technology solutions, and hardware with a broad partner ecosystem. Powering billions of purchases throughout local commerce, Toast delivers the precision and innovation required for modern restaurant and retail environments. For more information, visit www.toasttab.com.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Toast (TOST - Free Report) Toast, Inc. is a cloud-based digital technology platform built for the restaurant community, increasingly targeting restaurant and retail businesses. The company offers SaaS products, integrated payments and fintech, restaurant-grade hardware and a partner ecosystem that connects front- and back-of-house workflows across dine-in, takeout, delivery, catering and retail. Incorporated in Delaware in December 2011 (Opti Systems, Inc.) and renamed in May 2012, Toast is headquartered in Boston, MA.
TOST is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. TOST has a Growth Style Score of A, forecasting year-over-year earnings growth of 53.9% for the current fiscal year.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $1.37 per share. TOST boasts an average earnings surprise of +2.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TOST should be on investors' short list.
Toast, Inc. (NYSE:TOST – Get Free Report) CFO Elena Gomez sold 16,176 shares of the business’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $35.29, for a total transaction of $570,851.04. Following the transaction, the chief financial officer owned 168,974 shares of the company’s stock, valued at $5,963,092.46. This trade represents a 8.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Elena Gomez also recently made the following trade(s):
On Thursday, August 6th, Elena Gomez sold 900 shares of Toast stock. The shares were sold at an average price of $35.02, for a total transaction of $31,518.00. On Thursday, July 2nd, Elena Gomez sold 11,605 shares of Toast stock. The stock was sold at an average price of $28.85, for a total value of $334,804.25. Toast Price Performance Shares of TOST stock opened at $34.47 on Monday. The business has a 50-day moving average of $28.44 and a 200 day moving average of $27.86. Toast, Inc. has a 1-year low of $22.26 and a 1-year high of $46.11. The stock has a market capitalization of $17.72 billion, a PE ratio of 44.19 and a beta of 1.72.
Toast (NYSE:TOST – Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $0.26 earnings per share for the quarter, missing the consensus estimate of $0.32 by ($0.06). The business had revenue of $1.91 billion during the quarter, compared to analysts’ expectations of $1.87 billion. Toast had a return on equity of 23.90% and a net margin of 7.14%.The company’s quarterly revenue was up 23.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.13 EPS. Analysts anticipate that Toast, Inc. will post 0.99 EPS for the current year.
Toast News Summary Here are the key news stories impacting Toast this week:
Positive Sentiment: Analysts raise price targets: BMO Capital Markets lifted its Toast price target to $40, while Needham and Keefe, Bruyette & Woods also expressed expectations for meaningful appreciation. These calls reinforce the bullish case following Toast’s growth and improving profitability. BMO Capital Markets Raises Toast Price Target Needham Forecasts Toast Price Appreciation Keefe Bruyette Woods Toast Outlook Positive Sentiment: AI and partnership momentum: A report highlights Toast’s AI initiatives and relationships with Google and hotel operators as potential catalysts for expanding its addressable market and strengthening the long-term growth story. Toast AI, Google, and Hotel Partnership Report Positive Sentiment: Options activity signals bullish positioning: High trading volume in Toast call options suggests some traders are positioning for additional upside, although options activity is a market signal rather than a change in fundamentals. Toast High Call Option Volume Neutral Sentiment: Mixed quarterly results: Toast exceeded revenue expectations, reporting $1.91 billion, up 23.1% year over year, but adjusted earnings per share fell short of consensus estimates. The revenue growth supports the bull case, while the earnings miss raises questions about execution and near-term margins. Toast Second Quarter Sales Report Negative Sentiment: Valuation concerns: A Seeking Alpha analysis recommended trimming the position, arguing that Toast’s valuation could become difficult to justify if growth or profitability slows. This is a risk after the stock’s recent rally. Toast Valuation Downgrade Negative Sentiment: Executives sell shares: CEO Aman Narang sold approximately $4.9 million of Toast stock, while the CFO and CRO also sold shares. Because the transactions were made under pre-arranged Rule 10b5-1 plans, they may reflect scheduled diversification rather than diminished confidence, but the volume can still weigh on sentiment. Hedge Funds Weigh In On Toast Several hedge funds and other institutional investors have recently bought and sold shares of TOST. Bayban purchased a new stake in shares of Toast during the 4th quarter valued at about $25,000. SHP Wealth Management bought a new stake in Toast during the fourth quarter valued at approximately $29,000. Strive Financial Group LLC bought a new stake in Toast during the fourth quarter valued at approximately $29,000. Silicon Valley Capital Partners purchased a new stake in Toast during the fourth quarter valued at approximately $36,000. Finally, Quadrant Capital Group LLC raised its position in Toast by 2,083.3% in the fourth quarter. Quadrant Capital Group LLC now owns 1,048 shares of the company’s stock worth $37,000 after acquiring an additional 1,000 shares during the period. Institutional investors own 82.91% of the company’s stock.
Wall Street Analysts Forecast Growth Several analysts have commented on TOST shares. Oppenheimer raised their price objective on shares of Toast from $36.00 to $38.00 and gave the stock an “outperform” rating in a report on Wednesday. Wall Street Zen cut Toast from a “buy” rating to a “hold” rating in a research note on Saturday, July 4th. Mizuho dropped their price target on Toast from $45.00 to $38.00 and set an “outperform” rating on the stock in a research report on Tuesday, May 12th. Citigroup upped their price target on Toast from $36.00 to $39.00 and gave the stock a “buy” rating in a research note on Wednesday. Finally, Wells Fargo & Company increased their price objective on Toast from $36.00 to $40.00 and gave the stock an “overweight” rating in a report on Wednesday. Seventeen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Toast currently has a consensus rating of “Moderate Buy” and an average target price of $38.62.
Check Out Our Latest Research Report on Toast
Toast Company Profile (Get Free Report)
Toast, Inc (NYSE: TOST) is a technology company that builds a cloud-based platform for restaurants and other foodservice businesses. Headquartered in Boston, Massachusetts, Toast offers integrated point-of-sale (POS) systems and a suite of software and hardware designed to streamline front-of-house and back-of-house operations. The company went public in 2021 and has positioned itself as a vertically integrated provider for the restaurant industry.
Toast’s product portfolio includes touchscreen POS terminals and handheld order-and-pay devices, kitchen display systems, and peripherals tailored for high-volume foodservice environments.
Read More Five stocks we like better than Toast Albemarle’s Blowout Quarter Shows Why Lithium Still Matters Can DICK’S Turn Foot Locker Into a Winner? Why Dutch Bros Plunged Despite a Q2 Earnings Beat and Record Revenue Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War
Receive News & Ratings for Toast Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Toast and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEInsider Selling: International Flavors & Fragrances (NYSE:IFF) EVP Sells $754,978.75 in Stock
NEXT HEADLINE »Braveheart Bio (NASDAQ:BRVE) Director Purchases $999,990.00 in Stock
Toast’s Comeback Story Is Getting Harder for Wall Street to IgnoreToast NYSE: TOST reported second-quarter results that exceeded its expectations, led by record location additions, growth in recurring gross profit streams and expanding operating margins. Management also raised its full-year outlook while outlining plans to reinvest in artificial intelligence products, international, enterprise and retail expansion.
CEO Aman Narang said recurring gross profit streams rose more than 28% in the quarter, while GAAP operating income margin reached 26%. The company added a record 9,500 net locations during the period, bringing its total location count to about 180,000, up 22% from a year earlier.
Get Toast alerts:
Fiserv’s Debit Network Talks Raise a Bigger Question for Visa and Mastercard“Our core business continues to scale, our new markets are growing rapidly,” Narang said, adding that Toast is developing an AI-driven platform intended to take on operational work for restaurant customers.
Quarterly financial performance CFO Elena Gomez said annual recurring revenue grew 25% year over year, while recurring gross profit streams rose 28%. Adjusted EBITDA increased 38% to $221 million, with the adjusted EBITDA margin expanding 240 basis points to 37%.
Block’s Pivot to Profits and AI Is Turning HeadsGAAP operating income was $152 million, representing a 26% margin, while GAAP earnings per share reached $0.26. Gomez said recurring gross profit growth plus operating margin totaled 57% in the quarter on a GAAP basis.
Gross payment volume was $61 billion, up 22% year over year. GPV per location was flat, though management said core GPV exceeded expectations amid strong same-store sales trends and a modest benefit from the World Cup late in June.
SaaS ARR increased 27%, supported by location growth and mid-single-digit ARPU growth. Subscription gross profit rose 32%, while SaaS gross margin increased about 240 basis points. Payments ARR grew 23%, and fintech gross profit increased 26%. Total take rate was 98 basis points, up five basis points year over year. Non-payments fintech products, led by Toast Capital, generated $57 million in gross profit and contributed nine basis points to take rate. Toast said customer demand for capital remained strong and credit defaults remained within its expectations. The company attributed its underwriting performance to its data capabilities and disciplined underwriting process.
AI product strategy and Toast IQ Grow Management highlighted Toast IQ Grow, an AI-powered marketing offering, as the company’s fastest-growing product launch to date. Narang said the product is on track to become Toast’s fastest product to reach $10 million in ARR.
Toast IQ Grow combines website, search engine optimization, digital ordering and social-media marketing tools. It uses restaurant and guest data to develop marketing campaigns and connect those campaigns to resulting sales, according to Narang.
Narang cited Spirits Food & Friends, a Louisiana-based customer, as an example. The restaurant consolidated more than 10 systems onto Toast and subsequently adopted Toast IQ Grow. According to the company, the customer cut monthly agency spending by 70% and generated more than $100,000 in marketing-attributed sales in just under two months.
During the question-and-answer session, Narang said Toast intends to extend its agentic-product approach beyond marketing into areas where restaurants commonly outsource work, including scheduling, payroll and tax, inventory management, bookkeeping and accounting. He also identified voice AI for restaurant phone and drive-thru ordering as a potential use case.
Toast said the current marketing product combines AI-generated work with human oversight from marketing success managers. Narang said customers using Toast IQ Grow have shown same-store sales growth, while Gomez said gross margins have already improved as the product has begun to scale.
Expansion beyond core restaurants Toast continued to emphasize opportunities in enterprise, international and retail markets, which it describes as new total addressable markets. Narang said ARR across those markets is larger and scaling faster than the company’s core business did at comparable stages of maturity. The company expects ARR in the new markets to nearly double to $200 million this year.
The company announced several customer and partner developments during the quarter:
Kung Fu Tea, which has more than 300 locations, joined Toast’s core business. Best Western named Toast an endorsed food-and-beverage vendor, opening an opportunity to pursue hotel restaurants across the U.S. and Canada. Toast expanded its relationship with TGI Fridays in the United Kingdom. The company entered fuel payments, onboarding its first gas station convenience-store customers. In enterprise, Toast said it has momentum in restaurants, hotels and sports and entertainment venues. The company estimated the U.S. sports and entertainment opportunity at $500 million in ARR and said it roughly doubled its location count in that market over the past year.
In retail, Toast has doubled sales capacity over the past year and is targeting grocery stores, convenience stores and bottle shops. Narang said retail ARPU is closest to the company’s core business and that grocery offers particularly attractive GPV and ARPU characteristics.
Costs, capital returns and outlook Toast’s hardware and professional-services gross profit was negative 11% of recurring gross profit streams. The company received an approximately $10 million tariff refund during the quarter that had not been included in its guidance. Gomez said Toast expects the refund to represent the bulk of anticipated tariff refunds.
The company is also managing higher memory costs through hardware and supply-chain actions, including using earlier hardware generations, shifting certain products to lower-cost memory and purchasing components in the spot market. Gomez said the company expects the impact on its profit-and-loss statement to be greater in 2027 than in 2026 because of inventory accounting, but management expects the optimization work to lead to structurally better hardware margins once the memory market stabilizes.
Operating expenses rose 19% year over year, excluding $29 million of bad-debt and credit-related expenses. Sales and marketing spending increased 22%, while research and development expense rose 23%, reflecting investments in location growth, new markets, AI products and internal AI tools.
Free cash flow was $130 million, down from a year earlier as Toast chose to acquire and hold more hardware inventory. The company expects adjusted EBITDA-to-free-cash-flow conversion to improve in the second half of 2026.
Toast repurchased more than 19 million shares for $486 million year to date, with about $100 million remaining under its authorization.
For the third quarter, Toast expects subscription and fintech gross profit growth of 22% to 24% year over year and adjusted EBITDA of $210 million to $220 million. For full-year 2026, the company raised its outlook and now expects recurring gross profit growth of 23% to 25% and adjusted EBITDA of $805 million to $825 million.
Gomez said the company plans to reinvest part of its outperformance, including the tariff refund, into growth initiatives and longer-term bets. Toast continues to target gradual margin expansion and said it remains on a path toward adjusted EBITDA margins above 40% over the long term.
About Toast (NYSE:TOST)Toast, Inc NYSE: TOST is a technology company that builds a cloud-based platform for restaurants and other foodservice businesses. Headquartered in Boston, Massachusetts, Toast offers integrated point-of-sale (POS) systems and a suite of software and hardware designed to streamline front-of-house and back-of-house operations. The company went public in 2021 and has positioned itself as a vertically integrated provider for the restaurant industry.
Toast's product portfolio includes touchscreen POS terminals and handheld order-and-pay devices, kitchen display systems, and peripherals tailored for high-volume foodservice environments.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Should You Invest $1,000 in Toast Right Now?Before you consider Toast, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Toast wasn't on the list.
While Toast currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.
Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.
After its shares sank by more than 35% at the start of the year, Toast (TOST -0.69%) stock has come roaring back since the spring to near breakeven for the year.
The combination of mixed restaurant industry sales and the software-as-a-service (SaaS) sell-off contributed to its poor early stock performance, but the company itself continued to hit on all cylinders. That was seen again in the second quarter, with the restaurant software and payments company once again delivering strong results.
Image source: The Motley Fool.
An AI winner While Toast had been dumped in the AI loser bucket with other software companies, that narrative makes even less sense for Toast. First, its focus is on a sprawling industry of millions of small and medium-sized restaurant operators that aren't particularly tech savvy. Frontier model companies aren't going to look to put together the salesforce to sell into this market, and these companies aren't going to vibe code their own solutions.
Meanwhile, Toast's own AI-powered solutions have been gaining traction. Its AI-powered marketing agentic AI tool Toast IQ Grow is on track to become its fastest-ever solution to reach $10 million in annual recurring revenue (ARR), as restaurants are seeing great outcomes with it. In addition, the company is looking to expand its agentic AI platform into other areas like payroll, scheduling, tax, and bookkeeping. Things like dynamic menu and margin optimization tools, and predictive labor scheduling can have big impacts for restaurant operators that survive on slim margins, and these are the types of modules that can really help grow its ARPU (average revenue per user) over the long term.
Toast's Q2 results once again showed the company is thriving, with its revenue climbing 23% to $1.91 billion. Subscription revenue jumped 28% to $290 million, while financial technology revenue rose by 23%. Toast's GPV (gross payment volume), which is the payments the company processes for its restaurant customers, increased by 22% to $60.7 billion. It had a 59-basis-point fintech take rate and a 50-basis-point payments take rate.
ARR, meanwhile, surged by 25% to $2.4 billion. For Toast, ARR is the sum of its annualized subscription revenue and the gross profit from its payment processing business. Because there is a wide gap in gross margin between its two main revenue sources (subscriptions and payments), this is considered the company's most important metric.
Toast added 9,500 new locations in the period, a new quarterly record. It now serves 180,000 locations, up 22% year over year.
Earnings per share (EPS) doubled from $0.13 a year ago to $0.26 in the quarter, although that included a $10 million tariff refund. Otherwise, it looks like adjusted EPS would have been around $0.24. Excluding the tariff refund, adjusted EBITDA jumped 31% to $211 million.
Looking ahead, Toast once again raised its full-year forecast. It now expects its 2026 subscription services and fintech gross profit to be in a range of $2.325 billion to $2.355 billion, representing 23% to 25% growth. That's up from a prior outlook of $2.29 billion to $2.32 billion and original guidance of $2.27 billion to $2.30 billion.
The company is looking for adjusted EBITDA of $805 million to $825 million, up from prior guidance of $790 million to $810 million and an original forecast of $775 million to $795 million.
For Q3, Toast projected subscription services and fintech gross profit of $615 million to $625 million, equating to 22% to 24% growth. It's looking for adjusted EBITDA to land in the $210 million to $220 million range.
Today's Change
(
-0.69
%) $
-0.24
Current Price
$
34.48
Can the stock's momentum continue? Toast continues to deliver strong results, with revenue growth consistently in the low 20% range and ARR growth in the mid-20% range. The company continues to do a great job of adding new locations, while it's been making great progress in newer areas like international, chains, and grocery stores, where aggregate ARR is projected to double this year to $200 million.
Toast stock now trades at an enterprise value-to-ARR multiple of below 8 times its 2026 ARR guidance. On a forward P/E basis, it trades at 20 times 2027 analyst estimates. That's still a great valuation for a company with Toast's consistent 20%-plus ARR growth and long growth runway. As such, the stock should have plenty of continued upside from here.
Aman Narang, CEO of Toast, Inc. (TOST -0.69%), reported a sale of 138,052 shares for ~$4.9 million. SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$4.9 millionShares sold (indirectly held)138,052Post-transaction shares (directly held)70,451Post-transaction shares (indirectly held)462,698Post-transaction value$18.51 millionTransaction value based on SEC Form 4 weighted average sale price ($35.27); post-transaction value based on August 06, 2026, market close ($34.72).
Key questionsWhat was the regulatory structure governing this liquidity event?
The sales were conducted pursuant to a Rule 10b5-1 trading plan adopted by the Starlight 2026 Charitable Remainder Trust on March 13, 2026, which allows for automated execution of trades to mitigate potential conflicts of interest.How is the CEO's remaining equity distributed across different entities?
Following this disposition, Narang retains 70,451 shares held directly, while another 462,698 shares are held indirectly through the Starlight 2026 Charitable Remainder Trust, The Narang Family Trust, and Starlight 2026 Trust LLC.How does the execution price compare to the company's recent performance?
Narang realized a weighted average price of $35.27 per share in this transaction, while the stock has delivered a negative return of 24% over the one-year period ending Aug. 6, 2026.What is the company's current scale and financial profile?
As of the Aug. 6, 2026 market close, the firm has a market capitalization of $20.1 billion and reported trailing twelve-month revenue of $6.8 billion with a net income of $486.0 million.Company OverviewMetricValueShare Price (as of market close 2026-08-06)$34.72Market Capitalization$20.1 billionRevenue (TTM)$6.8 billionNet Income (TTM)$486.0 millionCompany SnapshotToast delivers a comprehensive cloud-based digital technology platform specifically designed for the restaurant sector, offering an extensive product suite that includes hardware solutions such as the Toast Point of Sale (POS) system and Toast Flex, which functions as an on-counter order and payment terminal, server workstation, guest kiosk, kitchen display system, and order fulfillment device.The company operates a subscription-based software business model supplemented by hardware sales and ancillary services, generating recurring revenue from restaurant operators who rely on Toast's integrated platform for point-of-sale, payment processing, inventory management, and operational efficiency.Toast primarily serves independent and multi-unit restaurant operators across the United States and Ireland, targeting establishments seeking comprehensive digital transformation solutions to streamline operations and enhance customer engagement.Toast, Inc. is a leading provider of cloud-based restaurant management software with a market capitalization of $20.1 billion and TTM revenue of $6.8 billion, demonstrating significant scale within the restaurant technology sector. The company's competitive advantage derives from its vertically integrated platform combining point-of-sale systems, payment processing, and operational management tools specifically engineered for restaurant workflows. With 6,500 employees and a presence across North America and Ireland, Toast maintains a strong position in the digital transformation of the foodservice industry.
What this transaction means for investorsOverall, it doesn’t appear that CEO Narang’s $5 million sale is anything for investors to worry about. The transaction was pre-planned and executed for a charitable trust, rather than anything the CEO was doing with his own cash in response to the stock’s performance. Furthermore, the CEO and co-founder of Toast holds a massive voting position in Toast’s class B shares that dwarfs this sale.
The real focus for Toast investors should remain on the company’s ability to strengthen its leadership position in the dining industry, as AI poses a threat to its operations. While there may be some mega-customers, like Starbucks, that are large enough to try to create their own Toast replacement (of sorts), I think these AI fears are largely overblown. Toast’s recent results back that notion as its suite of hardware, software, and services differentiates it from a vibe-coded app. ARR, total locations, and gross payment volume rose by 25%, 22%, and 22% in the company’s latest quarter. That said, investors will want to watch Toast’s profit margins going forward as fee compression from peers could limit its ultimate profitability.
Toast also still trades at 44 times earnings, so I wouldn’t necessarily go “all-in” at today’s price; instead, I’d add to the stock over time, as a slowdown in growth could prompt a re-rating of the valuation. Over the long haul, Toast should be able to continue delivering double-digit sales and net income growth by not only adding new clients but also expanding into adjacent verticals and adding new features to sell to existing customers, as it grabs a larger slice of the pie.
BOSTON--(BUSINESS WIRE)--Toast (NYSE: TOST), the global technology platform built for restaurant and retail businesses, today announced an expanded integration with Google that brings agentic food ordering to Ask Maps, a conversational AI feature within Google Maps. When a diner asks—by voice or text—for a restaurant recommendation or specific food request, Ask Maps can now put a Toast restaurant's menu directly in front of them and carry that request all the way through to a completed order. ".
BOSTON--(BUSINESS WIRE)--Toast (NYSE: TOST), the global technology platform built for hospitality, today announced that BWH Hotels, a leading hospitality enterprise comprised of three hotel companies, including WorldHotels™, Best Western® Hotels & Resorts and SureStay® Hotels, has endorsed Toast as a point-of-sale (POS) solution available to its properties across the United States and Canada. With approximately 4,300 properties globally, BWH Hotels sought to offer its hoteliers an additiona.
Rossana Niola, Principal Accounting Officer of Toast, Inc. (TOST +2.93%), sold 2,298 shares of Class A Common Stock on August 4, 2026, according to the SEC Form 4 filing.
Transaction summaryMetricValueShares sold (directly held)2,298Transaction value~$76,900Post-transaction shares (directly held)4,306Post-transaction value$145,585.86Transaction value based on SEC Form 4 weighted average sale price ($33.45); post-transaction value based on August 04, 2026 market close ($33.81).
Key questionsWhat were the specific circumstances surrounding this disposition?
The transaction was a non-discretionary "sell-to-cover" event mandated by the company's equity incentive policy to manage tax liabilities. Such sales are standard procedure for executives receiving equity-based compensation and occur automatically upon the vesting of restricted stock units (RSUs).How much equity does the insider retain in the company?
Rossana Niola maintains a direct stake of 4,306 shares, representing approximately 0.0007% of the total shares outstanding. This remaining position ensures continued alignment with shareholder interests despite the 35% reduction in direct holdings.What is the scale of Toast operations?
Headquartered in Boston, the company employs 6,500 people and maintains a market cap of $19.6 billion as of the August 4, 2026 market close.Company OverviewMetricValueShare Price (as of market close 2026-08-04)$33.81Market Capitalization$19.6 billionRevenue (TTM)$6.8 billionNet Income (TTM)$486.0 millionCompany SnapshotToast delivers a comprehensive cloud-based digital technology platform specifically designed for the restaurant sector, offering an extensive product suite that includes hardware solutions such as the Toast Point of Sale (POS) system and Toast Flex, which functions as an on-counter order and payment terminal, server workstation, guest kiosk, kitchen display system, and order fulfillment device.The company generates revenue through a subscription-based software model combined with hardware sales, enabling restaurant operators to streamline operations, enhance customer engagement, and optimize financial management through its integrated platform.Toast serves restaurant businesses across the United States and Ireland, targeting establishments of varying sizes that require comprehensive digital solutions to manage point-of-sale operations, inventory, labor, and customer relationships.Toast, Inc. operates as a leading provider of cloud-based restaurant management technology. The company maintains significant scale with 6,500 employees and a market cap of $19.6 billion.
The company demonstrates profitability with trailing 12-month net income of $486.0 million, reflecting strong operational leverage in its software-as-a-service (SaaS) business model. Toast's competitive advantage derives from its vertically integrated approach, offering both software and hardware solutions tailored specifically to the restaurant industry, enabling comprehensive digital transformation for its customer base.
What this transaction means for investorsThe August 4 sale of Toast stock by Principal Accounting Officer Rossana Niola is not a red flag for investors, since the disposition was made to fulfill tax withholding obligations associated with the vesting of restricted stock units.
While the transaction reduced Niola’s direct holdings by a substantial 35% to 4,306 shares, she has more than 46,000 RSUs that can be converted into common stock upon vesting. This remaining stake maintains her alignment with the interests of shareholders.
Niola’s sale comes amid a rally in Toast stock’s price after an excellent second-quarter earnings report. The company experienced a 22% year-over-year increase in new customer locations, which now totals approximately 180,000. This helped Toast hit $1.9 billion in Q2 revenue, up from $1.6 billion in 2025.
As a result, the company delivered diluted earnings per share of $0.26, representing a significant increase over the prior year’s $0.13, another factor in the rise in Toast’s share price.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Toast. The Motley Fool has a disclosure policy.
Key Takeaways Toast beat Q2 earnings and revenue estimates, raised its 2026 outlook and added a record 9,500 net locations.Toast IQ Grow is on track to be the company's fastest product to a $10 million annual recurring run-rate.Toast will reinvest a $10 million tariff refund in growth while funding AI and pursuing margin expansion. Toast, Inc. (TOST - Free Report) framed its second-quarter 2026 call around a broader shift from restaurant software to an agentic platform that can perform operational work for customers.
Adjusted earnings of 34 cents per share beat the Zacks Consensus Estimate of 32 cents. Revenues were $1.91 billion, which beat the Zacks Consensus Estimate of $1.87 billion by 1.9%.
TOST Makes AI Central to ARPU GrowthCo-Founder and CEO Aman Narang said Toast IQ Grow, the company’s marketing agent, is on track to become its fastest product to $10 million in annual recurring run-rate.
CEO Narang said Toast plans to extend the model into voice ordering, scheduling, payroll, tax, inventory management and bookkeeping. The strategy uses transaction and operating data to move beyond software into services restaurants often outsource.
A Bernstein analyst questioned adoption and margins. CEO Narang said the product already produces positive margins, with AI generating work and employees reviewing it, while early scaling has improved profitability.
Toast Extends Its Reach Beyond RestaurantsCEO Narang said enterprise, international and retail annual recurring run-rate is on track to nearly double to $200 million in 2026. Toast added Best Western as an endorsed provider, expanded TGI Fridays in the United Kingdom and began processing fuel payments.
Retail sales capacity has doubled over the past year, with grocery, convenience stores and bottle shops remaining the initial focus. Management plans to enter additional subverticals where product-market fit is established.
A Wolfe Research analyst asked about the record 9,500 net location additions. CEO Narang said most came from the core small and midsize business, where win rates remained strong and competition had not changed materially.
TOST Raises Outlook but Reinvests the UpsideCFO and president Elena Gomez guided third-quarter recurring gross profit to $615 million to $625 million, suggesting 22% to 24% growth. Adjusted EBITDA is expected between $210 million and $220 million.
For 2026, CFO Gomez raised recurring gross profit guidance to $2.325 billion to $2.355 billion, or 23% to 25% growth. Adjusted EBITDA guidance increased to $805 million to $825 million.
CFO Gomez said Toast will reinvest the $10 million tariff refund received in the quarter into growth initiatives. That decision explains why full-year adjusted EBITDA guidance rose by less than the second-quarter beat.
Toast Defends Its Margin FrameworkRecurring gross profit streams rose 28%, while adjusted EBITDA increased 38% to $221 million. The adjusted EBITDA margin expanded 240 basis points to 37%, including the tariff refund benefit.
CFO Gomez said the core business operates above 40% margins and at Rule of 60. Toast intends to pair sustained growth with gradual margin expansion while funding AI and newer markets.
Goldman Sachs and Evercore ISI analysts pressed management on efficiency and spending. CFO Gomez said most incremental costs reflect deliberate investment choices, while AI adoption should create additional internal productivity and support meaningfully higher margins over time.
TOST Manages Hardware and Cash Flow PressureFree cash flow declined to $130 million as Toast increased hardware inventory. CFO Gomez expects adjusted EBITDA conversion to improve during the second half as inventory levels begin moving toward normal.
Toast has reduced its expected memory-cost exposure by using earlier hardware generations, lower-cost memory and spot purchases. In response to a Mizuho analyst, CFO Gomez said the 2027 income-statement effect should exceed the 2026 impact because of inventory accounting.
CFO Gomez said supply is secured for 2026 and 2027 and that the optimization work should produce structurally better hardware margins after memory markets stabilize.
Toast Keeps Growth and Discipline in BalanceCEO Narang prioritized core sales capacity, Toast IQ products and scaling enterprise, international and retail, while keeping longer-term consumer and retail bets subject to performance gates.
CFO Gomez paired that agenda with gradual margin expansion and disciplined capital allocation. Toast repurchased more than 19 million shares for $486 million through June, with about $100 million remaining under its authorization.
TOST Rank and Style Scores Send Mixed SignalsTOST carries a Zacks Rank #3 (Hold). Its Growth Score of A and VGM Score of B indicate favorable growth characteristics and a solid blended profile, while its Value Score of C is neutral. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Momentum Score of D is a weaker signal, and the Style Scores are most effective alongside a Zacks Rank #1 or 2 (Buy) stocks. The Zacks Rank can change as earnings estimates are revised following the newly reported results.
Toast Inc (NYSE:TOST) on Tuesday posted upbeat results for the second quarter.
The company reported quarterly earnings of 26 cents per share which beat the analyst consensus estimate of 20 cents per share. The company reported quarterly sales of $1.908 billion which beat the analyst consensus estimate of $1.871 billion.
Toast shares fell 0.3% to $33.70 in pre-market trading.
These analysts made changes to their price targets on Toast following earnings announcement.
Piper Sandler analyst Billy Fitzsimmons maintained the stock with an Overweight rating and raised the price target from $32 to $39. Needham analyst Mayank Tandon maintained the stock with a Buy and raised the price target from $35 to $45. Considering buying TOST stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.
Considering buying TOST stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Toast (NYSE: TOST), the global technology platform built for hospitality, today announced that BWH Hotels, a leading hospitality enterprise comprised of three h
BOSTON--(BUSINESS WIRE)--Toast (NYSE: TOST), the global technology platform built for restaurants and retail businesses, today reported financial results for the second quarter ended June 30, 2026. “The first half of 2026 reflects the strength we have across the business. In Q2, recurring gross profit streams2 grew 28%, GAAP Operating Income margins expanded to 26%, and we added a record 9,500 net locations," said Toast CEO Aman Narang. "We welcomed a breadth of new customers this quarter, from.
Toast (TOST - Free Report) reported $1.91 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 23.1%. EPS of $0.34 for the same period compares to $0.24 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.87 billion, representing a surprise of +1.89%. The company delivered an EPS surprise of +6.25%, with the consensus EPS estimate being $0.32.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Toast performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Gross Payment Volume (GPV): $60.70 billion versus $60.31 billion estimated by four analysts on average.Locations: 180,000 versus 179,376 estimated by four analysts on average.Subscription Annualized Recurring Run-Rate: $1.21 billion compared to the $1.19 billion average estimate based on three analysts.Payments Annualized Recurring Run-Rate: $1.2 billion versus $1.2 billion estimated by two analysts on average.Total Annualized Recurring Run-Rate (ARR): $2.41 billion compared to the $2.39 billion average estimate based on two analysts.Revenue- Financial technology solutions: $1.57 billion compared to the $1.55 billion average estimate based on four analysts. The reported number represents a change of +23% year over year.Revenue- Subscription services: $290 million compared to the $283.46 million average estimate based on four analysts. The reported number represents a change of +27.8% year over year.Revenue- Hardware and professional services: $48 million versus the four-analyst average estimate of $44.25 million. The reported number represents a year-over-year change of +2.1%.Subscription services gross profit- Non-GAAP: $236 million compared to the $227.14 million average estimate based on four analysts.Financial technology solutions gross profit- Non-GAAP: $359 million versus the four-analyst average estimate of $345.25 million.Hardware and professional services gross profit- Non-GAAP: $-64 million versus $-73.72 million estimated by four analysts on average.Hardware and professional services gross profit- GAAP: $-68 million compared to the $-81.26 million average estimate based on two analysts.View all Key Company Metrics for Toast here>>>
Shares of Toast have returned +11.2% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Toast (TOST - Free Report) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +6.25%. A quarter ago, it was expected that this restaurant software provider would post earnings of $0.28 per share when it actually produced earnings of $0.29, delivering a surprise of +3.57%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Toast, which belongs to the Zacks Internet - Software industry, posted revenues of $1.91 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.89%. This compares to year-ago revenues of $1.55 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Toast shares have lost about 7.7% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Toast?While Toast has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Toast was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.36 on $1.95 billion in revenues for the coming quarter and $1.35 on $7.38 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Docebo Inc. (DCBO - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 7.
This company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of -24.1%. The consensus EPS estimate for the quarter has been revised 20% lower over the last 30 days to the current level.
Docebo Inc.'s revenues are expected to be $67.87 million, up 11.8% from the year-ago quarter.
Key Takeaways Toast is expected to post Q2 revenues of $1.87 billion, up 20.8% year over year.Subscription and FinTech non-GAAP gross profit is projected to grow 22-24%, supporting Q2 performance.Toast may face risks from higher tariff-related costs in the quarter. Toast, Inc. (TOST - Free Report) is set to report its second-quarter 2026 results on Aug. 4, after market close.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.87 billion, indicating an increase of 20.8% from the year-ago quarter’s reported figure.
The consensus mark for earnings per share (EPS) is pinned at 32 cents and has remained unchanged over the past two months. It indicates a rise of 33.3% from the figure reported in the year-ago quarter.
Image Source: Zacks Investment Research
The company’s EPS surpassed the Zacks Consensus Estimate in two of the trailing four quarters, met once and missed on another, with the average surprise being 0.89%. The graph below depicts this surprising history:
TOST’s Q2 Earnings WhispersHowever, our proprietary model does not conclusively predict an earnings beat for Toast this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Toast crrently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Likely to Shape Toast’s Q2 ResultsToast’s second-quarter performance is likely to have been shaped by strong revenue momentum and increased adoption of AI-driven products. The company’s ability to leverage AI-driven innovation and deepen its value proposition for restaurant operators bodes well for long-term prospects.
Strong customer momentum across the Subscription and FinTech segments is likely to have aided TOST’s top and bottom lines. It expects second-quarter non-GAAP total subscription and fintech gross profit in the range of $565-$575 million, implying 22-24% year-over-year growth. Adjusted EBITDA is projected to be between $185 million and $195 million.
Toast is likely to have strengthened its growth case ahead of second-quarter results as its expansion beyond its core restaurant base has continued to broaden its total addressable market and drive new highs in Annualized Recurring Run-Rate (ARR). The company may have benefitted from this broader mix while still continuing to apply its vertical playbook with discipline, which is expected to have supported momentum into the second quarter.
However, higher tariff-related costs are likely to have been a spoilsport for Toast in the to-be-reported quarter.
Q2 Projections for TOSTThe Zacks Consensus Estimate for Toast’s subscription services revenues is pegged at $283.5 million, which suggests a 24.9% increase from the year-ago quarter.
The consensus mark for revenues from financial technology solutions is pegged at $1.55 billion for the second quarter, up 21.2% from the year-ago period.
The consensus mark for Gross Payment Volume (GPV) is pinned at $60.31 billion, which is above the company’s reported figure of $49.9 billion in the year-ago quarter. The consensus mark for the total ARR is pegged at $2.39 billion, up from the year-ago figure of $1.93 billion.
The consensus mark for total locations served stands at 179,375, up from 148,000 reported a year ago.
However, the Zacks Consensus Estimate for hardware and professional services is pegged at $44.3 billion, indicating a decline from $47 million reported year over year.
TOST’s Price Performance & ValuationToast’s shares have gained 9.7% in the past three months. The Zacks Internet Software Market and the S&P 500 have increased 0.5% and 3.1%, respectively, over the same period. Peers like PayPal, Inc. (PYPL - Free Report) and Lightspeed Commerce, Inc. (LSPD - Free Report) continue to expand their offerings, challenging Toast’s dominance in the global technology platform built for restaurant and retail businesses. PayPal shares have increased 13.5%, while Lightspeed shares have gained 5.8% over the same time frame.
Image Source: Zacks Investment Research
From a valuation standpoint, in terms of forward 12-month Price/Sales (P/S), TOST stock is trading at 2.04X compared with the Zacks Internet Software Market industry’s 3.76X.
On the other hand, PYPL trades at 1.38X forward 12-month P/S, while LSPD trades near 1.06X forward 12-month P/S.
Image Source: Zacks Investment Research
TOST: Buy, Sell or Hold?Toast is a solid company with strong growth, improving margins and a clear product strategy. Its rising location count, AI roadmap and new-market expansion continue to support the long-term story. However, higher costs are likely to have posed challenges in the to-be-reported quarter.
Given its strategic advantages and the existing headwinds, the stock is best treated as a hold. For long-term investors, its important to wait before adding to positions due to short-term volatility.
The upcoming report from Toast (TOST - Free Report) is expected to reveal quarterly earnings of $0.32 per share, indicating an increase of 33.3% compared to the year-ago period. Analysts forecast revenues of $1.87 billion, representing an increase of 20.8% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific Toast metrics that are routinely monitored and predicted by Wall Street analysts.
The combined assessment of analysts suggests that 'Revenue- Financial technology solutions' will likely reach $1.55 billion. The estimate suggests a change of +21.2% year over year.
Analysts predict that the 'Revenue- Subscription services' will reach $283.46 million. The estimate indicates a change of +24.9% from the prior-year quarter.
The consensus estimate for 'Revenue- Hardware and professional services' stands at $44.25 million. The estimate points to a change of -5.9% from the year-ago quarter.
According to the collective judgment of analysts, 'Gross Payment Volume (GPV)' should come in at $60.31 billion. Compared to the current estimate, the company reported $49.90 billion in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Locations' should arrive at 179,376 . The estimate compares to the year-ago value of 148,000 .
Analysts' assessment points toward 'Subscription Annualized Recurring Run-Rate' reaching $1.19 billion. The estimate compares to the year-ago value of $950.00 million.
Analysts expect 'Payments Annualized Recurring Run-Rate' to come in at $1.20 billion. The estimate compares to the year-ago value of $978.00 million.
It is projected by analysts that the 'Total Annualized Recurring Run-Rate (ARR)' will reach $2.39 billion. Compared to the present estimate, the company reported $1.93 billion in the same quarter last year.
View all Key Company Metrics for Toast here>>>
Shares of Toast have demonstrated returns of +12% over the past month compared to the Zacks S&P 500 composite's +0.2% change. With a Zacks Rank #3 (Hold), TOST is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
In the latest close session, Toast (TOST - Free Report) was down 1.77% at $32.27. The stock fell short of the S&P 500, which registered a gain of 0.7% for the day. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 1%.
Shares of the restaurant software provider witnessed a gain of 13.98% over the previous month, beating the performance of the Computer and Technology sector with its loss of 6.59%, and the S&P 500's loss of 0.49%.
The investment community will be paying close attention to the earnings performance of Toast in its upcoming release. The company is slated to reveal its earnings on August 4, 2026. The company is forecasted to report an EPS of $0.32, showcasing a 33.33% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.87 billion, up 20.82% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.35 per share and a revenue of $7.38 billion, signifying shifts of +51.69% and +19.95%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Toast. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Toast possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Toast is currently exchanging hands at a Forward P/E ratio of 24.29. This denotes a premium relative to the industry average Forward P/E of 20.16.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Key Takeaways Toast posted $1.6B in revenues, up 22%, as locations and payment volume also rose 22%.Recurring gross profit growth is forecast at 21%-23% for 2026, below the first quarter's 27%.Toast raised adjusted EBITDA guidance to $790M-$810M as free cash flow increased 67%. Toast, Inc. (TOST - Free Report) presents a balanced investment case. The restaurant technology platform continues to expand revenues, locations and payment volume, while profitability and cash generation have improved.
The question is whether those positives are enough when growth is no longer accelerating and the stock offers only limited upside to the current price target. For now, TOST looks neither like a clear bargain nor a pure momentum trade.
TOST Growth Is Strong but No Longer AcceleratingToast reported first-quarter 2026 revenues of $1.6 billion, up 22% year over year. Subscription services revenues increased 28% to $268 million, while total locations rose 22% to about 171,000.
Gross payment volume also advanced 22% to $51.3 billion. The pace has become more normalized, with total revenue growth at 25% in parts of 2025, subscription services growth easing from the mid-30% range to the high-20% range and location growth moderating to the low-20% range.
Management’s full-year 2026 outlook reinforces that message. Toast expects recurring gross profit streams to grow 21% to 23%, below the 27% growth delivered in the first quarter.
Image Source: Zacks Investment Research
Toast’s Valuation Leaves Limited Near-Term UpsideTOST recently traded at $32.34, compared with a 6- to 12-month price target of $34. That leaves only $1.66 of potential appreciation, suggesting that much of the improved profitability story may already be reflected in the stock.
The valuation is not stretched on a relative sales basis. Toast trades at 2.05X forward 12-month sales, below its five-year median of 2.69X and well under the 3.81X multiple for its Zacks sub-industry, 6.13X for the technology sector and 4.87X for the S&P 500.
That discount helps, but it does not automatically create a bargain. With growth normalizing, investors may need stronger proof of durable margin expansion or renewed estimate momentum before assigning TOST a higher multiple.
Image Source: Zacks Investment Research
TOST Profitability Supports the Bull CaseProfitability is the clearest support for a more constructive view. In first-quarter 2026, Toast generated net income of $126 million, operating income of $110 million and adjusted earnings before interest, taxes, depreciation and amortization of $179 million.
Cash generation also improved. Operating cash flow was $132 million and free cash flow was $115 million, both up 67% year over year. Non-GAAP software-as-a-service gross margin exceeded 80% for the first time at 81%.
Management raised its full-year 2026 adjusted EBITDA guidance to $790 million to $810 million. That gives the bull case substance, especially for investors focused on operating leverage rather than revenue growth alone.
Toast’s Execution Risks Keep the Setup BalancedBetter profitability does not remove the execution risk. Hardware and professional services remained loss-making in the first quarter, with $39 million in revenues against $111 million of costs.
Those losses reflect onboarding investments, new-market support and tariff pressure. Management also plans to reinvest top-line outperformance into growth initiatives and internal AI tools, which can limit near-term margin upside.
Competition adds another consideration. Shift4 Payments (FOUR - Free Report) also serves restaurants with payment processing and point-of-sale technology, while Lightspeed Commerce (LSPD - Free Report) offers restaurant point-of-sale and payments capabilities. Their presence reinforces that Toast must keep converting product breadth into profitable customer growth.
Slower location and subscription growth could also constrain valuation expansion. If growth settles into a lower range before new markets and AI products contribute meaningfully, the stock may struggle to sustain a higher sales multiple.
TOST Scores Point to a Selective ApproachThe bottom line is that TOST has a better earnings profile than it had in prior periods, but the setup still calls for selectivity. Profitability, cash flow and recurring gross profit growth are real strengths, while valuation upside and momentum remain less convincing.
The stock currently carries a Zacks Rank #3 (Hold). That aligns with a balanced risk-reward profile rather than a strongly bullish near-term call. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TOST has a Growth Score of A, recognizing favorable projected earnings and sales expansion. Its Value Score of C is more neutral, while the Momentum Score of D points to weaker price and revision characteristics. The VGM Score of B offers some balance, but investors may want stronger upside, estimate revisions or price momentum before taking a more bullish stance.
Key Takeaways Toast IQ reached 40,000 weekly active locations, turning AI into a practical restaurant workflow tool.TOST expanded into enterprise, hotels, grocery, drive-thru and selected international markets.Toast's SaaS gross margin hit 81% as annualized recurring run rate rose 26% to $2.2 billion. Toast, Inc. (TOST - Free Report) is moving beyond its roots in restaurant payments and point-of-sale technology. Its platform now spans software, financial technology, hardware and connected operating workflows for restaurants and adjacent businesses.
AI adoption, new-market expansion and improving profitability are reshaping the growth story. The question is whether those gains can offset a more normalized pace of revenue, subscription and location growth.
Toast Turns AI Into a Restaurant Workflow LayerToast IQ is shifting AI from concept to daily restaurant use. In the first quarter of 2026, the product had 40,000 weekly active locations, with operators using it to identify revenue opportunities, save time and spot operating trends.
Toast IQ Grow adds a marketing use case. The agent builds campaigns from past performance data and sales forecasts, while future agents could extend into scheduling, payroll, inventory, food costs, bookkeeping and accounting.
TOST Expands Beyond Its Core Restaurant BaseToast is broadening its reach into drive-thru restaurants, enterprise accounts, hotels, grocery and selected international cities. Enterprise wins include Hungry Howie’s, Papa Murphy’s and The Alinea Group, while hotels add another channel through the Preferred Hotels & Resorts partnership.
The push also places Toast in a wider competitive set. Block, Inc. (XYZ - Free Report) offers Square for Restaurants, a cloud-based point-of-sale system for single- and multi-location restaurants. Lightspeed Commerce Inc. (LSPD - Free Report) also serves retail and hospitality customers through point-of-sale and commerce tools, making both companies relevant comparisons as Toast expands beyond independent restaurants.
Toast Converts Scale Into Stronger ProfitabilityScale is beginning to show in Toast’s economics. Locations rose from approximately 148,000 in the second quarter of 2025 to roughly 171,000 in the first quarter of 2026, while trailing 12-month gross payment volume increased to $204 billion from $176 billion.
Annualized recurring run rate reached $2.2 billion, up 26% year over year. Non-GAAP software-as-a-service gross margin reached 81% for the first time, and adjusted earnings before interest, taxes, depreciation and amortization rose to $179 million.
Image Source: Zacks Investment Research
TOST Still Faces Slower Growth and Cost PressureThe growth profile is still moderating. Total revenue growth was 22% in the first quarter of 2026, while subscription services growth eased from the mid-30% range to the high-20% range and location growth moved into the low-20% range.
Image Source: Zacks Investment Research
Costs also remain visible. Hardware and professional services were loss-making, onboarding investments and tariffs weighed on profitability, and management plans to reinvest top-line outperformance into growth initiatives and internal AI tools. Early AI workflows may also need time to prove consistent returns across every restaurant function.
Toast’s Mixed Signals Frame the Long-Term ViewThe bottom line is that Toast has a wider platform story than it did when the business was viewed mainly through payments and point-of-sale adoption. AI tools, new customer categories and stronger software margins support the long-term case, but normalization and execution costs keep the near-term setup more balanced.
The stock currently carries a Zacks Rank #3 (Hold). Its Growth Score of A and VGM Score of B point to favorable growth characteristics and a solid combined style profile. The Value Score of C and Momentum Score of D are less decisive, suggesting investors may want more evidence on valuation support, estimate momentum or share-price strength before taking a more aggressive stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Toast IQ reached 40,000 weekly active locations as AI expanded into restaurant decision-making.TOST targets enterprise, hotels, grocery and drive-thru markets to broaden its customer base.Toast's SaaS and fintech monetization rose to 103 basis points of payment volume, up 5 points. Toast, Inc. (TOST - Free Report) is responding to a changing restaurant technology market by moving beyond location additions alone. Its newer focus combines AI-enabled workflows, larger customers and adjacent verticals.
That shift points to a broader model built on deeper monetization and a wider addressable market. The opportunity is clear, but Toast still has to prove that these newer growth engines can scale consistently.
Toast IQ Moves From Feature to Operating LayerToast IQ is developing into an operating layer for restaurant decision-making. The product had 40,000 weekly active locations in the first quarter of 2026, and operators are using it to find revenue opportunities, save time and identify trends.
Toast IQ Grow adds marketing automation to that base. It builds campaigns from historical performance data and sales forecasts, while future agents are expected to extend into payroll, inventory, scheduling, bookkeeping and food-cost management.
TOST Targets Enterprise, Hotels and GroceryToast is moving into customer categories that can expand its market beyond independent restaurants. The approximately 500-location Hungry Howie’s rollout illustrates full-stack enterprise adoption across point-of-sale terminals, multi-location management, kitchen display systems and payment processing.
The company is also pursuing hotels through the Preferred Hotels & Resorts partnership, grocery as a near-term retail focus and drive-thru restaurants through a dedicated product. Shift4 Payments, Inc. (FOUR - Free Report) also operates in commerce technology markets where payments and software must support larger venues and complex customer experiences. Lightspeed Commerce Inc. (LSPD - Free Report) provides another point of reference in retail and hospitality technology, where integrated platforms are becoming central to merchant operations.
Toast’s Monetization Mix Supports Margin ExpansionToast’s strategy is increasingly about generating more revenue and gross profit from each location. In the first quarter of 2026, total software-as-a-service and fintech monetization reached 103 basis points of gross payment volume, up 5 basis points from a year earlier.
Payments take rate was 51 basis points, while fintech net take rate was 61 basis points. Non-payment fintech products, led by Toast Capital, contributed $51 million in gross profit, helping broaden the company’s monetization mix beyond payment processing and subscription services.
Image Source: Zacks Investment Research
TOST Must Prove AI Can Scale ConsistentlyAI remains an emerging growth lever, not a fully proven driver. Toast must demonstrate that products such as Toast IQ Grow can produce repeatable customer returns before they can materially lift average revenue per user or take rates.
Expansion into new verticals also requires investment. Hardware, implementation, support, product development and onboarding costs may pressure margins, even as scale improves. Hardware and professional services gross profit was negative 13% of recurring gross profit streams in the first quarter.
Toast’s Scores Reflect Growth With Weak MomentumToast’s broader growth shift is credible, but not yet one-sided for the stock. AI, enterprise penetration, retail expansion and higher monetization support the long-term case, while execution costs and slower core growth keep the near-term setup balanced.
TOST currently carries a Zacks Rank #3 (Hold). Its Growth Score of A and VGM Score of B reflect favorable growth characteristics, but its Value Score of C and Momentum Score of D show that the stock does not yet offer an unambiguously attractive signal across valuation and price action. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Toast (TOST - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this restaurant software provider have returned +16.3%, compared to the Zacks S&P 500 composite's +1.9% change. During this period, the Zacks Internet - Software industry, which Toast falls in, has gained 7.3%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Toast is expected to post earnings of $0.32 per share for the current quarter, representing a year-over-year change of +33.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $1.35 for the current fiscal year indicates a year-over-year change of +51.7%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.72 indicates a change of +27% from what Toast is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Toast.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Toast, the consensus sales estimate of $1.87 billion for the current quarter points to a year-over-year change of +20.8%. The $7.38 billion and $8.7 billion estimates for the current and next fiscal years indicate changes of +19.9% and +17.8%, respectively.
Last Reported Results and Surprise HistoryToast reported revenues of $1.63 billion in the last reported quarter, representing a year-over-year change of +21.9%. EPS of $0.29 for the same period compares with $0.2 a year ago.
Compared to the Zacks Consensus Estimate of $1.63 billion, the reported revenues represent a surprise of +0.1%. The EPS surprise was +3.57%.
Over the last four quarters, Toast surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Toast is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Toast. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Toast (TOST - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Toast currently has an average brokerage recommendation (ABR) of 1.61, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 31 brokerage firms. An ABR of 1.61 approximates between Strong Buy and Buy.
Of the 31 recommendations that derive the current ABR, 21 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 67.7% and 3.2% of all recommendations.
Brokerage Recommendation Trends for TOST
Check price target & stock forecast for Toast here>>>
The ABR suggests buying Toast, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is TOST Worth Investing In?Looking at the earnings estimate revisions for Toast, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.35.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Toast. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Toast.
In the latest close session, Toast (TOST - Free Report) was up +2.25% at $29.04. The stock outpaced the S&P 500's daily gain of 0.05%. Elsewhere, the Dow gained 0.46%, while the tech-heavy Nasdaq lost 0.64%.
Heading into today, shares of the restaurant software provider had gained 10.21% over the past month, outpacing the Computer and Technology sector's loss of 3.62% and the S&P 500's gain of 0.61%.
The investment community will be paying close attention to the earnings performance of Toast in its upcoming release. The company is slated to reveal its earnings on August 4, 2026. The company is forecasted to report an EPS of $0.32, showcasing a 33.33% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.87 billion, showing a 20.82% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.35 per share and a revenue of $7.38 billion, representing changes of +51.69% and +19.95%, respectively, from the prior year.
Any recent changes to analyst estimates for Toast should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Toast boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Toast is currently trading at a Forward P/E ratio of 21. For comparison, its industry has an average Forward P/E of 18.34, which means Toast is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 38% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
California Public Employees Retirement System cut its holdings in shares of Toast, Inc. (NYSE: TOST) by 20.9% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 671,880 shares of the company's stock after selling 177,043 shares during the quarter. California
Key Takeaways Dave looks more attractive to add now, while Toast suits investors willing to wait for new initiatives.Dave's revenues rose 47%, as member growth, higher spending and disciplined acquisition fueled momentum.Toast reached 171,000 locations, with rising profitability and growth paths in AI and enterprise markets. Toast, Inc. (TOST - Free Report) and Dave Inc. (DAVE - Free Report) deal with different parts of fintech, but both use software and data to replace older, more expensive systems. Toast has built a broad operating platform for restaurants, combining payments, software, hardware, lending and now AI tools. Dave focuses on consumers who need low-cost banking and short-term liquidity, using its CashAI underwriting system to manage risk and personalize credit access.
Toast offers greater scale, a large merchant network and several paths into enterprise, international and retail markets. Dave is smaller and more concentrated, yet it is growing faster, producing strong margins and expanding beyond ExtraCash into a wider credit relationship.
The key question is not simply which company has the better product. Investors must weigh Toast’s durable platform and wider reach against Dave’s faster operating momentum, sharper unit economics and higher exposure to credit, funding and regulatory risks for diversified long-term portfolios.
The Case for TOSTToast’s advantage is the breadth of its restaurant platform. Its software, payments, hardware and fintech products are deeply tied to daily operations, making the service difficult to replace. The company ended the first quarter with about 171,000 live locations, up 22% year over year, while annualized recurring run-rate rose 26% to $2.2 billion. That scale gives Toast more data and chances to add products.
Toast IQ could deepen that advantage. The assistant uses restaurant-specific sales, labor, menu and guest data, and Toast said operators at more than 125,000 locations used it during the first quarter. Early usage centered on revenue, inventory and marketing questions. While the opportunity is clear, investors still need evidence that engagement becomes sustained revenues rather than simply a useful feature.
Expansion beyond independent restaurants also matters. Hungry Howie’s selected Toast for roughly 500 locations, showing the platform can handle complex enterprise operations. Toast is also building in international markets and supporting hospitality brands operating across the United Kingdom and United States. These moves widen the addressable market, but they bring heavier product, support and sales requirements than the core business.
Financially, Toast is balancing growth with improving profitability. Recurring gross profit increased 27%, adjusted EBITDA reached $179 million, and management raised full-year guidance. Still, GPV per location declined 1%, hardware and services remain a drag, and new markets require continued investment. Compared with Dave, Toast offers diversification and lower credit concentration, but its larger base may make rapid growth harder to sustain.
The Case for DAVEDave’s appeal starts with its growth engine. First-quarter revenues increased 47% to $158.4 million, supported by 18% growth in monthly transacting members and 24% growth in average revenue per user. New-member additions rose 22% to 695,000, while customer acquisition cost stayed at $18. This combination suggests Dave can scale without giving up marketing discipline.
Credit performance makes the story compelling. ExtraCash originations climbed 37% to $2.1 billion, yet the 28-day past-due rate improved to 1.69%, its lowest first-quarter level on record. CashAI appears to be expanding access while keeping losses controlled. Unlike Toast, whose fintech exposure is tied mainly to merchant payments, Dave benefits when underwriting improves, and members use more liquidity products.
The next leg comes from deeper member relationships. Dave Flex, a pay-in-four card product, is being tested as an alternative to traditional credit cards and buy-now-pay-later offers. It uses CashAI and can work across merchants without repeated applications. Revenue contribution is not expected this year, but the product gives Dave a credible route to higher engagement and a larger share of member spending.
The Coastal Community Bank funding arrangement strengthens that route. Moving ExtraCash originations to an off-balance-sheet structure should unlock liquidity and reduce funding costs while allowing Dave to keep investing in growth and repurchases. Adjusted EBITDA rose 57% to $69.3 million, with a 44% margin, and guidance increased. Regulatory, partner and credit risks remain meaningful, but Dave’s faster growth, improving loss trends and expanding product set create the stronger upside case.
How Do Estimates Compare for TOST & DAVE?The Zacks Consensus Estimate for Toast’s 2026 and 2027 sales implies year-over-year growth of 19.95% and 17.84%, respectively. The consensus mark for 2026 and 2027 EPS suggests a year-over-year increase of 51.69% and 27.04%, respectively. Over the past 60 days, estimates for TOST’s 2026 and 2027 EPS have been revised in opposite directions, giving us a mixed view.
For Toast:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Dave’s 2026 and 2027 sales calls for year-over-year growth of 28.85% and 19.93%, respectively. The consensus estimates for both 2026 and 2027 EPS have been revised upward over the past week. The figures suggest a year-over-year increase of 27.47% and 28.63%, respectively.
For Dave:
Image Source: Zacks Investment Research
Price Performance and Valuation of TOST & DAVEOver the past three months, Dave shares have rallied 54.3%, while Toast shares have risen 0.6%. In comparison, the S&P 500 composite has advanced 4.2% in the same time frame.
Image Source: Zacks Investment Research
TOST is trading at a forward price-to-sales of 1.86X, which is below its one-year median of 2.65X.
Meanwhile, following the share rally, DAVE is presently trading at a forward price-to-sales of 6.82X, which is above its one-year median of 4.53X. Dave’s premium requires rapid growth and clean credit execution.
Image Source: Zacks Investment Research
ConclusionToast remains a fintech platform with strong restaurant reach, rising profitability and credible growth paths in AI, enterprise and international markets. Its broad ecosystem lowers dependence on any single product, but the company’s size and expansion spending may limit near-term upside. Dave carries greater credit, regulatory and bank-partner risk, yet its growth, acquisition efficiency, improving past-due rates and widening product lineup provide a more powerful earnings path.
For investors choosing between the two, Dave looks like the more attractive position to add now, while Toast appears better suited for existing shareholders who are comfortable waiting for newer initiatives to mature.
While TOST carries a Zacks Rank #3 (Hold), DAVE sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Toast launched an AI marketing agent to help restaurants create campaigns and attract more guests.Pilot users of Toast IQ Grow saw average sales rise 8% versus similar Toast restaurants.Toast's AI push lifted coding velocity 60% and resolved 40% of customer-support interactions. Toast, Inc. (TOST - Free Report) is making artificial intelligence (AI) a central part of its growth strategy. In May 2026, the company launched Toast IQ Grow, a marketing product built around its first AI agent. It creates campaigns using restaurant sales data across email, text messages and social channels, helping busy operators save time and attract guests.
Early results appear encouraging. Pilot customers using Toast IQ Grow recorded an average 8% increase in sales compared with similar Toast restaurants. Sahara Bistro Shawarma attributed nearly one-third of its March 2026 sales to Toast marketing tools. Its sales also rose more than 30% from the prior four weeks, suggesting that AI agents can produce measurable returns.
Toast also has a large base for expanding AI services. It ended the first quarter of 2026 with about 171,000 locations, up 22% year over year, after adding roughly 7,000 net locations. Toast IQ already had 40,000 weekly active locations, giving the platform more operating, payment and guest data to generate useful recommendations.
The AI push is also supporting Toast’s internal efficiency. Engineering coding velocity increased more than 60% year over year, helping the company launch its marketing agent three months earlier than planned. About 40% of customer-support interactions were resolved by AI, improving efficiency and enabling Toast to invest more in account management, product development and sales.
Investors need to watch whether AI usage is converting into stronger financial growth. First-quarter 2026 annualized recurring run-rate (ARR) rose 26% to $2.2 billion, while recurring gross profit grew 27%. Adjusted EBITDA reached $179 million, and operating income climbed to $110 million from $43 million.
How Are XYZ & LSPD Integrating AI?Block’s (XYZ - Free Report) Square has embedded AI into its merchant services through automated marketing, customer insights and operational recommendations. These tools help restaurants personalize promotions, simplify decisions and improve efficiency within the broader Square ecosystem. XYZ reported serving more than 4 million sellers across its global digital commerce platforms.
Lightspeed (LSPD - Free Report) applies AI to restaurant analytics, inventory planning and customer engagement. Its AI-driven features help operators interpret sales patterns, forecast demand and identify practical actions that may improve margins. LSPD ended the fourth quarter of fiscal 2026 with approximately 150,000 total customer locations using its commerce platform worldwide.
TOST’s Price Performance, Valuation & EstimatesShares of Toast have outperformed in the past three months compared with the broader industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Toast’s shares have a Value Score of C. In terms of forward 12-month P/E, TOST stock is trading at 26.20X, which is at a discount to the Zacks Internet Software industry’s 27.43X.
Image Source: Zacks Investment Research
Toast’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 earnings per share has been revised upward to $1.35 in the past two months. The consensus estimate for the metric indicates a year-over-year increase of 51.69%.
Image Source: Zacks Investment Research
Toast currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
D.A. Davidson & CO. grew its holdings in Toast, Inc. (NYSE:TOST – Free Report) by 52.7% in the 1st quarter, according to the company in its most recent filing with the SEC. The firm owned 72,079 shares of the company’s stock after buying an additional 24,868 shares during the quarter. D.A. Davidson & CO.’s holdings in Toast were worth $1,911,000 at the end of the most recent quarter.
Other institutional investors have also recently made changes to their positions in the company. Bayban bought a new position in shares of Toast during the fourth quarter valued at approximately $25,000. SHP Wealth Management purchased a new position in shares of Toast in the fourth quarter worth approximately $29,000. Strive Financial Group LLC purchased a new position in shares of Toast during the 4th quarter worth $29,000. Central Pacific Bank Trust Division grew its stake in shares of Toast by 123.5% during the 4th quarter. Central Pacific Bank Trust Division now owns 943 shares of the company’s stock valued at $33,000 after acquiring an additional 521 shares during the period. Finally, Silicon Valley Capital Partners purchased a new stake in shares of Toast in the fourth quarter worth $36,000. Institutional investors own 82.91% of the company’s stock.
Wall Street Analysts Forecast Growth A number of equities analysts recently weighed in on the stock. Morgan Stanley set a $45.00 target price on shares of Toast in a research report on Friday, May 8th. UBS Group decreased their price objective on Toast from $40.00 to $34.00 and set a “buy” rating on the stock in a research report on Friday, May 8th. Barclays began coverage on shares of Toast in a research note on Tuesday, July 7th. They issued an “overweight” rating and a $35.00 target price on the stock. Citigroup cut their price objective on Toast from $42.00 to $36.00 and set a “buy” rating on the stock in a research report on Friday, May 8th. Finally, Robert W. Baird lifted their price target on shares of Toast from $30.00 to $33.00 and gave the company a “neutral” rating in a research note on Wednesday, July 8th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $36.96.
View Our Latest Report on TOST
Toast Trading Down 1.5% NYSE:TOST opened at $30.40 on Wednesday. The firm has a fifty day simple moving average of $26.19 and a 200-day simple moving average of $28.12. Toast, Inc. has a 12 month low of $22.26 and a 12 month high of $49.66. The company has a market capitalization of $15.69 billion, a P/E ratio of 46.77 and a beta of 1.74.
Toast (NYSE:TOST – Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.08). Toast had a net margin of 6.39% and a return on equity of 20.86%. The firm had revenue of $1.63 billion for the quarter, compared to analysts’ expectations of $1.63 billion. During the same quarter in the previous year, the firm posted $0.09 EPS. The firm’s revenue for the quarter was up 21.9% compared to the same quarter last year. Equities analysts forecast that Toast, Inc. will post 0.97 EPS for the current year.
Insider Buying and Selling In related news, CEO Aman Narang sold 14,365 shares of Toast stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $28.85, for a total transaction of $414,430.25. Following the completion of the transaction, the chief executive officer directly owned 70,451 shares in the company, valued at approximately $2,032,511.35. This trade represents a 16.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Jonathan Vassil sold 3,150 shares of the business’s stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $30.03, for a total transaction of $94,594.50. Following the completion of the transaction, the executive owned 69,966 shares of the company’s stock, valued at approximately $2,101,078.98. This represents a 4.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 159,265 shares of company stock valued at $4,278,832 in the last 90 days. 10.03% of the stock is currently owned by insiders.
Toast Company Profile (Free Report)
Toast, Inc (NYSE: TOST) is a technology company that builds a cloud-based platform for restaurants and other foodservice businesses. Headquartered in Boston, Massachusetts, Toast offers integrated point-of-sale (POS) systems and a suite of software and hardware designed to streamline front-of-house and back-of-house operations. The company went public in 2021 and has positioned itself as a vertically integrated provider for the restaurant industry.
Toast’s product portfolio includes touchscreen POS terminals and handheld order-and-pay devices, kitchen display systems, and peripherals tailored for high-volume foodservice environments.
See Also Five stocks we like better than Toast Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding TOST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Toast, Inc. (NYSE:TOST – Free Report).
Receive News & Ratings for Toast Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Toast and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINED.A. Davidson & CO. Has $1.89 Million Position in Amcor PLC $AMCR
NEXT HEADLINE »Bank of New York Mellon Corp Sells 255,274 Shares of Tyler Technologies, Inc. $TYL
In the latest trading session, Toast (TOST - Free Report) closed at $30.37, marking a -1.56% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.89%. On the other hand, the Dow registered a gain of 0.74%, and the technology-centric Nasdaq increased by 1.29%.
Shares of the restaurant software provider witnessed a gain of 27.16% over the previous month, beating the performance of the Computer and Technology sector with its loss of 6.6%, and the S&P 500's loss of 0.63%.
Analysts and investors alike will be keeping a close eye on the performance of Toast in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.32, signifying a 33.33% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.87 billion, showing a 20.82% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.35 per share and a revenue of $7.38 billion, demonstrating changes of +51.69% and +19.95%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Toast. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Toast is currently a Zacks Rank #3 (Hold).
Digging into valuation, Toast currently has a Forward P/E ratio of 22.81. Its industry sports an average Forward P/E of 19.97, so one might conclude that Toast is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
BOSTON--(BUSINESS WIRE)--Toast (NYSE: TOST), the global technology platform built for restaurant and retail businesses, will release financial results for the second quarter ended June 30, 2026 following the close of the U.S. markets on Tuesday, August 4, 2026. Toast will host a conference call to discuss its results at 5:00 p.m. Eastern Time the same day. The news release with financial results and a link to the conference call will be accessible at the Toast investor relations website: https:.
Amova Asset Management Americas Inc. raised its holdings in shares of Toast, Inc. (NYSE:TOST – Free Report) by 0.4% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 3,817,961 shares of the company’s stock after buying an additional 16,614 shares during the quarter. Toast comprises about 1.4% of Amova Asset Management Americas Inc.’s portfolio, making the stock its 21st biggest holding. Amova Asset Management Americas Inc. owned approximately 0.74% of Toast worth $101,176,000 at the end of the most recent quarter.
A number of other hedge funds have also modified their holdings of the business. NewEdge Advisors LLC lifted its position in Toast by 1,555.5% during the first quarter. NewEdge Advisors LLC now owns 17,432 shares of the company’s stock worth $578,000 after buying an additional 16,379 shares in the last quarter. Cerity Partners LLC grew its holdings in shares of Toast by 24.0% in the second quarter. Cerity Partners LLC now owns 81,574 shares of the company’s stock valued at $3,613,000 after purchasing an additional 15,774 shares during the period. State Street Corp grew its holdings in shares of Toast by 2.7% in the second quarter. State Street Corp now owns 9,212,889 shares of the company’s stock valued at $408,039,000 after purchasing an additional 245,276 shares during the period. Frontier Capital Management Co. LLC purchased a new position in Toast during the second quarter worth about $4,479,000. Finally, Sei Investments Co. raised its stake in Toast by 24.6% during the second quarter. Sei Investments Co. now owns 1,030,007 shares of the company’s stock worth $45,619,000 after purchasing an additional 203,404 shares during the period. 82.91% of the stock is currently owned by institutional investors and hedge funds.
Analysts Set New Price Targets Several research firms have recently weighed in on TOST. Morgan Stanley set a $45.00 price target on shares of Toast in a research note on Friday, May 8th. Citigroup decreased their price objective on Toast from $42.00 to $36.00 and set a “buy” rating on the stock in a report on Friday, May 8th. DA Davidson cut their target price on Toast from $33.00 to $28.00 and set a “neutral” rating for the company in a research note on Tuesday, May 12th. The Goldman Sachs Group raised Toast from a “neutral” rating to a “buy” rating and set a $36.00 price objective for the company in a research report on Thursday, July 9th. Finally, Mizuho cut their target price on Toast from $45.00 to $38.00 and set an “outperform” rating on the stock in a research report on Tuesday, May 12th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, Toast presently has an average rating of “Moderate Buy” and a consensus target price of $36.96.
View Our Latest Stock Report on TOST
Toast Trading Up 2.7% Toast stock opened at $30.89 on Tuesday. The stock has a market cap of $15.94 billion, a P/E ratio of 47.52 and a beta of 1.74. The company has a fifty day simple moving average of $26.05 and a 200-day simple moving average of $28.16. Toast, Inc. has a 12-month low of $22.26 and a 12-month high of $49.66.
Toast (NYSE:TOST – Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.08). Toast had a net margin of 6.39% and a return on equity of 20.86%. The business had revenue of $1.63 billion during the quarter, compared to analysts’ expectations of $1.63 billion. During the same period last year, the company earned $0.09 EPS. The business’s quarterly revenue was up 21.9% compared to the same quarter last year. As a group, sell-side analysts forecast that Toast, Inc. will post 0.97 earnings per share for the current fiscal year.
Insider Buying and Selling In related news, General Counsel Brian R. Elworthy sold 108,000 shares of Toast stock in a transaction on Friday, May 29th. The shares were sold at an average price of $25.89, for a total transaction of $2,796,120.00. Following the sale, the general counsel directly owned 189,642 shares in the company, valued at $4,909,831.38. This trade represents a 36.29% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Stephen Fredette sold 9,146 shares of the business’s stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $28.85, for a total transaction of $263,862.10. Following the completion of the sale, the president directly owned 931,449 shares of the company’s stock, valued at approximately $26,872,303.65. This trade represents a 0.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 159,265 shares of company stock valued at $4,278,832 over the last three months. 10.03% of the stock is currently owned by insiders.
Toast Company Profile (Free Report)
Toast, Inc (NYSE: TOST) is a technology company that builds a cloud-based platform for restaurants and other foodservice businesses. Headquartered in Boston, Massachusetts, Toast offers integrated point-of-sale (POS) systems and a suite of software and hardware designed to streamline front-of-house and back-of-house operations. The company went public in 2021 and has positioned itself as a vertically integrated provider for the restaurant industry.
Toast’s product portfolio includes touchscreen POS terminals and handheld order-and-pay devices, kitchen display systems, and peripherals tailored for high-volume foodservice environments.
Recommended Stories Five stocks we like better than Toast The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding TOST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Toast, Inc. (NYSE:TOST – Free Report).
Receive News & Ratings for Toast Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Toast and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEAlTi Global Inc. Sells 2,439 Shares of Automatic Data Processing, Inc. $ADP
NEXT HEADLINE »Amova Asset Management Americas Inc. Has $105.78 Million Stock Position in Taiwan Semiconductor Manufacturing Company Ltd. $TSM
Jonathan Vassil, Chief Revenue Officer of Toast, Inc. (TOST 0.81%), sold 11,170 shares of Class A Common Stock on July 13 and July 14, 2026, as disclosed in a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold11,170Transaction value~$336,900Post-transaction shares154,235Post-transaction shares (directly held)69,966Post-transaction shares (indirectly held)84,269Post-transaction value$4.6 millionTransaction value based on SEC Form 4 weighted average sale price ($30.16); post-transaction value based on July 14, 2026, market close ($30.00).
Key questionsHow does this transaction relate to the executive's total equity exposure?
While the sale involved 11,170 shares, Jonathan Vassil maintains a substantial long-term incentive position with 316,431 outstanding stock options, ensuring continued alignment with the company's valuation performance.What were the mechanics of the share acquisition and disposal?
The transaction was executed as a cashless exercise and sale, in which options with an exercise price of $2.21 were converted to Class A Common Stock and immediately sold at prices ranging from $30.00 to $30.52.What is the significance of the 10b5-1 plan adoption date?
The trading plan was established on March 13, 2026, with a four-month cooling-off period before the first transactions were executed in July, a standard governance practice for executive portfolio management.How does the current market valuation compare to the transaction price?
The shares were sold at a weighted-average price of $30.16, slightly above the July 14, 2026, market close of $30.00, during a period when the stock had declined 33% over the previous 12 months.Company OverviewMetricValueShare Price (as of market close 2026-07-17)$30.08Market Capitalization$17.4 billionRevenue (TTM)$6.4 billionNet Income (TTM)$412.0 millionCompany SnapshotToast, Inc. delivers a comprehensive cloud-based digital technology platform purpose-built for the restaurant industry, featuring a robust product suite that includes the Toast Point of Sale (POS) system, Toast Flex terminals, and complementary hardware solutions that generate recurring software and services revenue.The company operates a subscription-based business model in which restaurant operators pay recurring fees for access to its integrated cloud platform, point-of-sale hardware, payment processing services, and ancillary software solutions, thereby creating predictable, scalable revenue streams.Toast serves restaurant operators of varying sizes across the United States and Ireland, targeting independent and multi-unit restaurant chains seeking comprehensive digital infrastructure solutions to streamline operations, enhance customer engagement, and optimize financial management.Toast, Inc. is a leading provider of cloud-based digital infrastructure solutions for the restaurant industry, with a market capitalization of $17.4 billion, TTM revenues of $6.4 billion, and TTM net income of $412.0 million. The company maintains operational scale with 6,500 employees. It leverages its integrated platform architecture, combining point-of-sale hardware, payment processing, and software services, to create significant switching costs and customer stickiness in a fragmented yet growing market. Toast's competitive positioning is reinforced by its vertical specialization in the restaurant sector, enabling deep product-market fit and the ability to capture multiple revenue streams across hardware, software subscriptions, and payment processing services.
What this transaction means for investorsInvestors shouldn’t worry about Vassil’s recent sales as they are pretty run-of-the-mill, pre-planned transactions for management to make over time. Vassil still has ample exposure to Toast’s long-term results, and these sales were relatively minor.
The main focus for investors should be on Toast’s stock and its actual operations, which appear to be moving in contrasting directions. While Toast stock is down 35% over the last year, I’d argue that the company has never been stronger financially and operationally. The company has locked in its status as the leading payment provider in the states for restaurants of all types and has recently delivered exceptional growth despite a challenging macroeconomic environment and the ever-looming, all-encompassing “AI disruption threat.”
Toast just grew annual recurring revenue by 26%, adjusted EBITDA by 34%, and saw EPS double in its latest quarter as its payments platform continued to scale beautifully. Now solidly profitable and becoming ever more so with each quarter, Toast’s focus will turn to protecting its leadership position from peers, incorporating AI into its operations, and upselling current customers on new services. Trading at just 22 times forward earnings while guiding for recurring gross profits to grow by 22% this year, I’ll be looking to open a starter position in the company soon.
Key Takeaways Toast is expanding into enterprise, retail and international markets to broaden its growth opportunities.TOST won Hungry Howie's rollout, launched Drive-Thru and now serves 100-plus grocery locations.TOST posted 21.9% revenue growth, 26% ARR growth and added 7,000 net new locations in Q1. Toast (TOST - Free Report) is expanding beyond independent U.S. restaurants into enterprise chains, retail and international markets. Management said these newer markets are gaining traction, with annualized recurring run-rate (ARR) growing faster and software revenue per location exceeding that of Toast’s core business at a comparable stage.
Enterprise offers clear proof of Toast’s expansion strategy. Hungry Howie’s selected Toast’s enterprise technology suite for implementation across roughly 500 restaurants, including its point-of-sale (POS) terminals, Multi-Location Management, Kitchen Display System (KDS) and Toast Payment Processing. Toast also launched Toast Drive-Thru, an enterprise-grade solution designed to serve more than 140,000 U.S. locations.
Retail is another important growth path. Toast now serves more than 100 grocery locations, each generating more than $5 million in annual sales. Management estimates that more than 20,000 independent U.S. grocers generate more than $250 billion in sales, creating a sizable opportunity for Toast’s payments, inventory and supplier tools.
Internationally, Toast is focusing on dense, high-volume cities such as London, Toronto, Sydney and Melbourne. Its support for an International Chamber of Commerce UK Trade & Export initiative could raise its profile with hospitality groups expanding between the UK and the United States. Toast is backing that expansion with local teams, round-the-clock service and operating data that can be shared globally.
Toast entered 2026 with strong momentum, giving its broader expansion plan added weight. First-quarter revenues increased 21.9% to $1.63 billion, while ARR climbed 26% to $2.2 billion. It added 7,000 net new locations in the quarter, with total locations increasing 22% year over year to nearly 171,000.
How Are Block & Lightspeed Expanding?Block’s (XYZ - Free Report) Square is a strong direct competitor. Square combines restaurant POS, payments, handheld hardware, online ordering, inventory and franchise-management tools, while its Uber Eats integration is expanding internationally. Square said that food-and-beverage seller GPV grew 21% year over year in first-quarter 2026.
Lightspeed POS (LSPD - Free Report) competes across hospitality and retail. Its platform combines POS, global payments, inventory management, supplier connections, analytics and multichannel sales, helping multi-location merchants operate efficiently across physical and digital channels. Lightspeed serves businesses in more than 100 countries worldwide.
TOST’s Price Performance, Valuation & EstimatesShares of Toast have outperformed in the past three months compared with the broader industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Toast’s shares has a Value Score of C. In terms of forward 12-month P/E, TOST stock is trading at 26.34X, which is at a discount to the Zacks Internet Software industry’s 28.50X.
Image Source: Zacks Investment Research
Toast’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $1.35 in the past two months. The consensus estimate for the metric indicates a year-over-year increase of 51.69%.
Image Source: Zacks Investment Research
Toast currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Toast Inc. NYSE: TOST shares have rallied sharply into mid-July. Analysts are becoming bullish on the company’s Toast IQ artificial intelligence (AI) platform that launched in October 2025.
Toast Today
$30.56 +0.16 (+0.54%)
As of 01:41 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$22.26▼
$49.66P/E Ratio47.03
Price Target$37.59
The tool is boosting total revenue and annual recurring revenue (ARR). Toast’s first-quarter results showed approximately 7,000 net new locations and 26% year-over-year ARR growth to $2.2 billion.
Get Toast alerts:
That was punctuated by The Goldman Sachs Group, which upgraded the stock from Neutral to Buy and raised its price target to $36. The firm was bullish about Toast IQ, which it believes will increase the company’s average revenue per user. Toast has also been increasing its number of accounts, a trend Goldman Sachs believes will continue.
Since the rally, TOST is about 20% below its consensus price target of $37.59. But at a time when investors have higher growth options, the simple question is whether TOST is fairly priced or undervalued.
Toast AI Platform Is Driving Revenue and ARR GrowthOn June 10, Toast published data about how its customers used Toast IQ in the first quarter of 2026. The results make clear that restaurant owners are looking for insights to increase the profitability and efficiency of their restaurants. That supports the idea that revenue gains will continue.
However, the company is also facing the costs associated with AI. That means balancing higher hardware and memory costs that could put margins under pressure.
Why Interest Rates Still Matter for TOSTSince going public in 2021, TOST stock has been impacted by the direction of interest rates. It soared to around $51 a share after the IPO. However, this was a time when stimulus money flowed freely, and the revenge travel trade was just getting started.
Toast seemed like the right stock at the right time. That is, until it wasn’t. TOST fell sharply, along with most technology stocks, starting in November 2021.
That wasn’t just because of normal IPO price action. The Federal Reserve began raising interest rates from a level at or near zero percent. Before dismissing that as anecdotal evidence, consider that Toast relies on the restaurant sector. This sector came under pressure as they balanced higher input costs with a consumer who had only so much room to absorb price increases.
That situation is still in place today. Consumer spending remains strong, and the latest data show inflation moderating. That argues against interest rate hikes, which will be bullish for TOST.
Is Toast Stock Undervalued? DCF Models Tell Different StoriesA discounted cash flow (DCF) calculator offers two ways to answer the fair value question. At TOST's current price, both are worth checking because they tell noticeably different stories.
The Intrinsic Value (FCF) model discounts Toast's projected free cash flow to today's dollars, resulting in a fair value range of $35.68 to $65.40 per share. The high end of that range is about 54% above the price as of July 15, suggesting the stock is undervalued on a pure cash-generation basis.
The Intrinsic Value Range w/Earnings Per Share (EPS) model applies multiples of 18.75x to 25x to projected earnings, resulting in a fair value band of $4.59 to $8.37 per share. A 25x forward price-to-earnings (P/E) is below the stock's current P/E and is reasonably generous for a mature company. The gap comes from the earnings base, not the multiple.
Why the disconnect? Toast only recently crossed into sustained GAAP profitability, and its GAAP earnings per share remain small relative to the cash the business actually generates. Stock-based compensation and other non-cash charges weigh on reported EPS in a way that they don't weigh on free cash flow. Analysts project 33% earnings growth over the next 12 months. A static, current-year EPS multiple doesn't fully capture that growth.
That's the real takeaway: the FCF and EPS models aren't contradicting each other so much as measuring different things for a company early in its profitability curve. As GAAP earnings catch up to cash flow, expect that gap to narrow. Until then, the FCF model may be the more reliable gauge of what Toast is actually worth.
Toast, Inc. (TOST) Price Chart for Thursday, July, 16, 2026
Toast Stock Outlook: What to Watch Before August EarningsTOST is a stock that may be easier to buy than it is to hold. For investors who believe the stock is trading below its fair value, getting in at $30 seems like a safe bet. However, competition and higher costs could eat into the company’s margins, compressing earnings growth, which is the argument skeptics are making.
Toast is scheduled to report earnings on August 4. Confirmation of strong year-over-year revenue growth could go a long way toward affirming Goldman Sachs' outlook. It could also signal that more analysts will raise their TOST targets.
Should You Invest $1,000 in Toast Right Now?Before you consider Toast, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Toast wasn't on the list.
While Toast currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.
Toast (TOST - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this restaurant software provider have returned +24.5%, compared to the Zacks S&P 500 composite's +0.5% change. During this period, the Zacks Internet - Software industry, which Toast falls in, has gained 8.6%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Toast is expected to post earnings of $0.32 per share, indicating a change of +33.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.35 points to a change of +51.7% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $1.72 indicates a change of +27% from what Toast is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Toast.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Toast, the consensus sales estimate for the current quarter of $1.87 billion indicates a year-over-year change of +20.8%. For the current and next fiscal years, $7.38 billion and $8.7 billion estimates indicate +19.9% and +17.8% changes, respectively.
Last Reported Results and Surprise HistoryToast reported revenues of $1.63 billion in the last reported quarter, representing a year-over-year change of +21.9%. EPS of $0.29 for the same period compares with $0.2 a year ago.
Compared to the Zacks Consensus Estimate of $1.63 billion, the reported revenues represent a surprise of +0.1%. The EPS surprise was +3.57%.
Over the last four quarters, Toast surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Toast is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Toast. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
