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Louisbourg Investments Inc. acquired a new position in Toast, Inc. (NYSE:TOST – Free Report) in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 220,811 shares of the company’s stock, valued at approximately $6,401,000.

Several other large investors have also recently added to or reduced their stakes in the business. Arkfeld Wealth Strategies L.L.C. grew its stake in shares of Toast by 138.8% in the second quarter. Arkfeld Wealth Strategies L.L.C. now owns 264,821 shares of the company’s stock worth $7,807,000 after purchasing an additional 153,928 shares in the last quarter. Quantitative Investment Management LLC increased its holdings in shares of Toast by 120.1% during the second quarter. Quantitative Investment Management LLC now owns 63,823 shares of the company’s stock valued at $1,775,000 after purchasing an additional 34,831 shares during the period. Junto Capital Management LP acquired a new position in shares of Toast during the second quarter valued at $54,320,000. Assenagon Asset Management S.A. increased its holdings in shares of Toast by 47.4% during the second quarter. Assenagon Asset Management S.A. now owns 970,799 shares of the company’s stock valued at $27,008,000 after purchasing an additional 312,077 shares during the period. Finally, Keenan Capital LLC acquired a new position in shares of Toast during the second quarter valued at $31,047,000. 82.91% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling In other news, CEO Aman Narang sold 124,542 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $35.29, for a total transaction of $4,395,087.18. Following the sale, the chief executive officer owned 175,458 shares in the company, valued at $6,191,912.82. The trade was a 41.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Elena Gomez sold 16,176 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $35.29, for a total value of $570,851.04. Following the completion of the sale, the chief financial officer owned 168,974 shares of the company’s stock, valued at $5,963,092.46. The trade was a 8.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 534,830 shares of company stock valued at $18,566,600. 10.03% of the stock is owned by corporate insiders.

Toast Stock Performance Toast stock opened at $32.67 on Wednesday. The firm has a market cap of $16.79 billion, a price-to-earnings ratio of 39.81 and a beta of 1.74. Toast, Inc. has a 1 year low of $22.26 and a 1 year high of $39.72. The firm’s 50 day moving average price is $32.46 and its two-hundred day moving average price is $29.32. Toast (NYSE:TOST – Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $0.26 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.06). Toast had a return on equity of 23.90% and a net margin of 7.14%. The company had revenue of $1.91 billion during the quarter, compared to analyst estimates of $1.87 billion. During the same quarter in the previous year, the firm earned $0.13 earnings per share. The business’s revenue was up 23.1% compared to the same quarter last year. As a group, equities analysts predict that Toast, Inc. will post 1.00 EPS for the current fiscal year.

Analyst Upgrades and Downgrades Several equities research analysts recently weighed in on the stock. Jefferies Financial Group set a $40.00 price objective on shares of Toast in a report on Wednesday, August 5th. Sanford C. Bernstein increased their target price on shares of Toast from $39.00 to $45.00 and gave the company an “outperform” rating in a research report on Thursday, August 6th. BTIG Research reissued a “neutral” rating on shares of Toast in a research note on Thursday, August 27th. Bank of America initiated coverage on shares of Toast in a research report on Thursday, October 15th. They set a “buy” rating and a $40.00 price target on the stock. Finally, The Goldman Sachs Group upgraded shares of Toast from a “neutral” rating to a “buy” rating and set a $36.00 price target on the stock in a research report on Thursday, July 9th. Seventeen analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $39.11.

Get Our Latest Stock Analysis on Toast

Toast Company Profile (Free Report)

Toast, Inc (NYSE:TOST) provides a cloud-based technology platform designed for restaurants. Its integrated system combines point-of-sale software and hardware with payment processing, helping restaurants manage sales, orders, menus, guest interactions and day-to-day operations from a unified platform.

The company offers products and services including online ordering, delivery management, digital ordering and payment tools, restaurant websites, gift cards, loyalty programs, marketing, labor management, payroll, inventory management, reporting and analytics.

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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 -4.1%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Internet - Software industry, which Toast falls in, has gained 4.5%. 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 $0.37 per share for the current quarter, representing a year-over-year change of +48%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $1.41 points to a change of +58.4% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $1.81 indicates a change of +28.2% from what Toast is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Toast is rated Zacks Rank #3 (Hold).

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 $1.96 billion for the current quarter points to a year-over-year change of +20.3%. The $7.44 billion and $8.78 billion estimates for the current and next fiscal years indicate changes of +20.9% and +18%, respectively.

Last Reported Results and Surprise HistoryToast reported revenues of $1.91 billion in the last reported quarter, representing a year-over-year change of +23.1%. EPS of $0.34 for the same period compares with $0.24 a year ago.

Compared to the Zacks Consensus Estimate of $1.87 billion, the reported revenues represent a surprise of +1.88%. The EPS surprise was +6.25%.

Over the last four quarters, Toast surpassed consensus EPS estimates three 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 D on this front, indicating that it is trading at a premium to 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.

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?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Toast (TOST - Free Report) .

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>>>

While the ABR calls for buying Toast, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

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.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed 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.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

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 a Good Investment?In terms of 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.

BOSTON--(BUSINESS WIRE)--Toast (NYSE: TOST), the global technology platform built for restaurant and retail businesses, today introduced Toast IQ Team, a new labor management solution for restaurant and retail operators, alongside a significant expansion of Toast IQ Grow, the complete marketing solution Toast introduced earlier in 2026. From building schedules that help manage labor costs to turning great guest experiences into five-star reviews, Toast IQ Team and Toast IQ Grow mark another ste.

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 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? 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, 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 ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow 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, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.86% 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.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

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.

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 global technology platform built for restaurant and retail businesses. The company offers SaaS products, integrated payments and fintech, restaurant-grade hardware, agentic AI capabilities 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 as 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 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 58.4% for the current fiscal year.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.06 to $1.41 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 (TOST - Free Report) ended the recent trading session at $28.99, demonstrating a -4.83% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.25%. Elsewhere, the Dow lost 0.86%, while the tech-heavy Nasdaq added 0.24%.

Heading into today, shares of the restaurant software provider had lost 9.32% over the past month, lagging the Computer and Technology sector's gain of 4% and the S&P 500's loss of 0.42%.

Investors will be eagerly watching for the performance of Toast in its upcoming earnings disclosure. In that report, analysts expect Toast to post earnings of $0.37 per share. This would mark year-over-year growth of 48%. Simultaneously, our latest consensus estimate expects the revenue to be $1.96 billion, showing a 20.3% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.41 per share and a revenue of $7.44 billion, representing changes of +58.43% and +20.95%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Toast. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Toast is currently a Zacks Rank #3 (Hold).

In terms of valuation, Toast is presently being traded at a Forward P/E ratio of 21.64. This expresses a premium compared to the average Forward P/E of 18.78 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

BOSTON--(BUSINESS WIRE)--Toast (NYSE: TOST), the digital technology platform built for restaurants and retail, today announced Toast Fuel, a new set of capabilities for fuel operators and convenience stores. With Toast Fuel, operators can run fuel payments, both in-store and at the pump, alongside retail and foodservice on a single, connected platform. Convenience stores sell an estimated 80% of the fuel purchased by consumers in the United States, according to the National Association of Conve.

In the latest close session, Toast (TOST - Free Report) was up +1.01% at $30.11. The stock's change was more than the S&P 500's daily loss of 0.03%. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.01%.

Shares of the restaurant software provider witnessed a loss of 19.37% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 5.26%, and the S&P 500's gain of 0.53%.

The investment community will be paying close attention to the earnings performance of Toast in its upcoming release. On that day, Toast is projected to report earnings of $0.37 per share, which would represent year-over-year growth of 48%. Our most recent consensus estimate is calling for quarterly revenue of $1.96 billion, up 20.3% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.41 per share and a revenue of $7.44 billion, indicating changes of +58.43% and +20.95%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Toast. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.

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, the Zacks Consensus EPS estimate has remained steady. Toast is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Toast is currently exchanging hands at a Forward P/E ratio of 21.18. This expresses a premium compared to the average Forward P/E of 19.86 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 39% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Toast (TOST - Free Report) closed the most recent trading day at $29.74, moving -2.97% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.17%. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, added 0.4%.

The restaurant software provider's shares have seen a decrease of 13.22% over the last month, not keeping up with the Computer and Technology sector's gain of 0.37% and the S&P 500's loss of 1.29%.

Investors will be eagerly watching for the performance of Toast in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.37, indicating a 48% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.96 billion, up 20.3% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.41 per share and a revenue of $7.44 billion, representing changes of +58.43% and +20.95%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Toast. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Toast presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Toast currently has a Forward P/E ratio of 21.78. Its industry sports an average Forward P/E of 20.16, 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 bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Toast (TOST +0.23%) is a provider of digital payments and management software services for restaurants and other businesses. The company grew its revenue by roughly 23% year over year to $1.91 billion last quarter, and net income surged 92.5% to roughly $154 million.

Despite very strong sales and earnings expansion, investors have seemingly been hesitant to pay a valuation premium to own a piece of Toast's growth story. With the stock trading at roughly 20 times 2026's expected earnings, shares could actually be significantly underpriced compared to the rate at which the business is growing its profits.

What would have to happen for investors to pay more for Toast stock?

Image source: Getty Images.

A combination of consistency and new growth wins could power gains for Toast Toast's recent business performance suggests the company may not need to do anything radically different for its stock to eventually see substantial gains. While the stock is still down roughly 11% through 2026's trading, the company's second-quarter report, published at the beginning of August, helped drive strong gains in its share price.

Toast has continued to bring customers on board at an encouraging pace, with roughly 9,500 new customer locations added in the second quarter. The business also closed out the quarter with annualized recurring revenue of roughly $2.4 billion -- representing an increase of roughly 25% year over year.

The fintech specialist's core growth engine continues to look quite strong. Payment services continue to be the hook that brings most customers on board, but the company is also converting clients who use its payment tech into subscription-based business management software -- which has even higher margins.

While Toast's heavy focus on the restaurant industry may be causing some concern among investors, given the industry's historically high sensitivity to macroeconomic pressures, the company should be able to command higher valuation multiples if growth in its core market continues to be impressive.

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In addition to the restaurant space, Toast is also expanding into other markets. With its Q2 report, the company introduced its payment services to gas stations. At the time of the company's Q2 report and conference call, it had only rolled out service to two gas-station customers -- but initiatives along these lines could be a substantial boon to Toast and its stock.

For starters, expanding into categories outside the restaurant industry will provide new revenue streams. Winning customers in new industries will also diversify the company's sales streams and help provide some fortification against macroeconomic pressures that can be particularly hard on the restaurant industry.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Toast. The Motley Fool recommends the following options: long January 2028 $15 calls on Toast. The Motley Fool has a disclosure policy.

Toast (TOST -2.26%) is a leading provider of financial technology services for businesses in the restaurant industry. The business is growing rapidly and still seems to have a long runway for expansion, but some of its business segments are carrying a lot more weight on the profitability front than others.

In the second quarter, Toast's revenue grew 23% to reach roughly $1.91 billion. Meanwhile, the business posted net income of $154 million in the period -- good for a margin of roughly 80.7%. The company's payments business once again did the heavy lifting in driving profits, but the picture is also more nuanced.

Image source: Getty Images.

Payments is Toast's biggest draw, but it has other strengths In the second quarter, the financial technology solutions segment that includes Toast's payments business accounted for $1.57 billion of its overall sales in the period -- roughly 82.2% of the total pie. While the segment's total cost of revenue accounted for roughly $1.21 billion of the total $1.39 billion cost of sales in the quarter, it was still central to the business's gross profit of roughly $516 million in the quarter.

Notably, the company's hardware and professional services segment had a substantially negative gross margin in Q2. While the unit posted revenue of roughly $48 million in the period, it had a cost of revenue of $116 million -- and that doesn't factor in operating expenses for the segment.

Meanwhile, the company's subscription services segment posted revenue of roughly $290 million and had a cost of revenue of just $64 million. In other words, the subscriptions business was a net positive contributor of $226 million in gross profit for the quarter. On a gross margin basis, the subscription services business is by far Toast's most profitable.

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On the other hand, the payments-focused financial technology solutions unit is the linchpin of the company's business model and accounts for the large majority of sales. The segment delivered a gross profit of roughly $360 million in the quarter.

The payments business holds Toast's business together. While the hardware business is posting negative gross margins, that shouldn't be surprising or concerning. By selling its payments and restaurant management hardware at a loss, the company is able to get the devices into the hands of customers who then use services with much higher margins.

Subscription services are notably much higher-margin than the payments-focused financial technology solutions segment. As Toast brings more customers on board through the core offering of its payment solutions, it has opportunities to acquire more clients for its subscription services and boost its overall margins substantially.

Toast (NYSE: TOST), the digital technology platform built for hospitality, today announced an agreement with [url="]Kung Fu Tea[/url], America's largest bubble

California State Teachers Retirement System increased its stake in shares of Toast, Inc. (NYSE:TOST – Free Report) by 2,643.0% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 17,903,895 shares of the company’s stock after purchasing an additional 17,251,171 shares during the period. California State Teachers Retirement System owned 3.48% of Toast worth $498,086,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. HB Wealth Management LLC increased its stake in Toast by 2.5% during the second quarter. HB Wealth Management LLC now owns 12,748 shares of the company’s stock worth $355,000 after acquiring an additional 315 shares during the last quarter. Saudi Central Bank raised its position in shares of Toast by 93.0% in the 2nd quarter. Saudi Central Bank now owns 33,013 shares of the company’s stock valued at $918,000 after purchasing an additional 15,905 shares in the last quarter. Odyssean LLC raised its holdings in Toast by 144.1% in the second quarter. Odyssean LLC now owns 119,775 shares of the company’s stock valued at $3,332,000 after acquiring an additional 70,700 shares in the last quarter. BAM Wealth Management LLC raised its stake in shares of Toast by 23.2% in the 2nd quarter. BAM Wealth Management LLC now owns 15,098 shares of the company’s stock valued at $420,000 after purchasing an additional 2,844 shares in the last quarter. Finally, AXQ Capital LP acquired a new stake in Toast during the second quarter valued at approximately $1,746,000. 82.91% of the stock is currently owned by hedge funds and other institutional investors.

Toast Trading Up 3.5% NYSE TOST opened at $33.25 on Tuesday. The company has a 50 day moving average of $32.91 and a 200-day moving average of $28.80. Toast, Inc. has a 1-year low of $22.26 and a 1-year high of $42.15. The firm has a market cap of $17.09 billion, a price-to-earnings ratio of 42.62 and a beta of 1.72.

Toast (NYSE:TOST – Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported $0.26 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.06). Toast had a return on equity of 23.90% and a net margin of 7.14%.The company had revenue of $1.91 billion for the quarter, compared to analyst estimates of $1.87 billion. During the same quarter in the previous year, the company posted $0.13 earnings per share. Toast’s revenue for the quarter was up 23.1% on a year-over-year basis. On average, analysts forecast that Toast, Inc. will post 1 earnings per share for the current year. Analysts Set New Price Targets Several brokerages have recently issued reports on TOST. Zacks Research downgraded shares of Toast from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 7th. Barclays increased their price target on Toast from $35.00 to $39.00 and gave the company an “overweight” rating in a research note on Wednesday, August 5th. Wall Street Zen raised shares of Toast from a “hold” rating to a “buy” rating in a research note on Saturday, August 29th. Citigroup lifted their target price on Toast from $36.00 to $39.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Finally, Royal Bank Of Canada boosted their price target on shares of Toast from $36.00 to $44.00 and gave the company a “sector perform” rating in a report on Monday, August 31st. Sixteen analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat, Toast presently has an average rating of “Moderate Buy” and a consensus price target of $39.12.

Read Our Latest Stock Analysis on TOST

Insider Buying and Selling In other news, CRO Jonathan Vassil sold 14,280 shares of the business’s stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $33.90, for a total value of $484,092.00. Following the sale, the executive owned 69,966 shares of the company’s stock, valued at $2,371,847.40. The trade was a 16.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Aman Narang sold 119,843 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $35.38, for a total transaction of $4,240,045.34. 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 have sold a total of 522,533 shares of company stock worth $18,172,786 over the last ninety days. Company insiders own 10.03% of the company’s stock.

Toast Profile (Free Report)

Toast, Inc (NYSE:TOST) provides a cloud-based technology platform designed for restaurants and other food-service businesses. Its platform combines point-of-sale hardware and software with tools for order management, payments, menu management, reporting and business operations.

The company also offers products and services that support employee management, payroll, inventory, scheduling, online ordering, delivery, gift cards, loyalty programs and guest engagement. Toast’s integrated approach is intended to help restaurants manage front-of-house and back-of-house activities through a single platform.

Toast was founded in 2011 and is headquartered in Boston, Massachusetts.

Recommended Stories Five stocks we like better than Toast Analysts Are Punting Their Calls Into the Next Quarter After Adobe’s Mixed Earnings Institutional Money Is Pouring Into These 2 Altcoin ETFs The End of Big Tech Buybacks? Only One Hyperscaler Is Still Repurchasing Shares 3 Dividend Kings to Buy While They’re Still Beaten Down 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).

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Toast (TOST - Free Report) closed the most recent trading day at $32.45, moving -2.52% from the previous trading session. This change lagged the S&P 500's daily loss of 0.48%. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.64%.

The restaurant software provider's shares have seen a decrease of 4.56% over the last month, not keeping up with the Computer and Technology sector's gain of 0.4% and the S&P 500's loss of 0.97%.

Analysts and investors alike will be keeping a close eye on the performance of Toast in its upcoming earnings disclosure. The company is expected to report EPS of $0.37, up 48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.96 billion, up 20.3% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.41 per share and revenue of $7.44 billion, indicating changes of +58.43% and +20.95%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Toast. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Toast possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Toast is presently trading at a Forward P/E ratio of 23.65. This signifies a premium in comparison to the average Forward P/E of 20.07 for its industry.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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.

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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.

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:

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BOSTON--(BUSINESS WIRE)--Toast Announces Participation at Goldman Sachs Communacopia & Technology Conference.

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.

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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.

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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.

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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.

By PYMNTS  |  August 10, 2026

 | 

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.

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.

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.

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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.

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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.

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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’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.

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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].

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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 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.