TOAST Soars! Is This Restaurant Tech the Ares to the Competition's Zeuses?

By Hera Toast is on Fire!

Greetings mortals! Wonder Woman here reporting from the front lines of... the stock market? Yes even I a Daughter of Themyscira must occasionally venture into your world of earthly economics. And what have I found? A company called Toast (TOST) is making waves—or perhaps I should say sizzling like a perfectly cooked Amazonian steak! It seems Toast has finally landed on the 'Best Stocks in the Market' list a feat worthy of celebration with ambrosia (though I suspect they’re using something less divine). The mere mortals at Ritholtz Wealth Management seem quite smitten especially one Josh Brown who apparently talks about Toast more than I discuss the Lasso of Truth. And now his patience has paid off. Finally!

Category Killer or Just a Really Good Cook?

Josh believes Toast is now a 'category killer,' which in my day meant someone who could defeat a Minotaur with one hand tied behind their back. In this case it means they're dominating the restaurant technology scene. The more restaurants that use it the more everyone else is pressured to join the party lest they be left serving their customers with stone tablets and quills. (Can you imagine the wait times?) I'm told it's becoming the 'de facto' standard. I always knew that mortals when they align can accomplish extraordinary things the way that a diverse group of heroes aligned to form the Justice League so too restaurants are aligning to use Toast.

Defying the Gods (and Economists)

Apparently while other restaurant giants like McDonalds Sweetgreen and Chipotle were issuing warnings like panicked oracles Toast was busy defying the 'difficult environment.' One analyst Dan Dolev (not to be confused with a Gorgon) praised Toast's ability to increase its 'take rate.' All I know is that if someone tried to 'take' anything from me they'd be meeting my gauntlets rather quickly. But I digress. It seems this take rate is a good thing and more good things are on the horizon as contracts are renegotiated. Remember dear mortals even in the face of adversity perseverance is key. As my mother always said 'Where there is love there is hope... and a lot of hard work!'

From Zero to Hero (Sandwich)

Sean another mortal at Ritholtz Wealth Management points out that Toast has been a public company for a while but has spent most of its time below its all time highs. It seems they hit rock bottom in May of 2022 when everyone was convinced the sky was falling or rather the economy was collapsing. Economists predicted a recession those doom sayers! But Toast like a true Amazonian warrior shrugged it off. Consumer spending on food away from home surged proving that people will always prioritize a good meal even if it means sacrificing the occasional chariot upgrade. It seems that those economists were wrong. Take that Ares.

Growth Spurt: More Than Just Metaphorical

Now the numbers. Numbers make my head spin faster than Hermes on a delivery run but here they are: Toast has grown its revenue by 48% annually since 2020. Their profitability is also improving which let's be honest is a good thing. No one wants to invest in a company that's bleeding money faster than I can deflect bullets. Their recent earnings call was apparently a triumph with strong growth in recurring revenue payment volume and customer acquisition. Even Applebee's (a mortal restaurant chain not a fruit orchard) has partnered with them. It seems that the enterprise pipeline for Toast is really strong and I would never doubt the words or work of a strong woman.

Risk Management: Even Wonder Woman Needs a Strategy

Even with all this good news Josh warns of a potential pullback. He suggests watching for support levels and preparing for volatility. After all even the mightiest Amazonian can't predict the future with 100% accuracy (unless of course I consult the Magic Sphere but that's a story for another time). It seems that there is a gap around the $35 $37 range to consider but if it goes lower than that the stock will be in trouble! While investors previously doubted Toast's profitability those doubts are now fading away. Hopefully the market will start giving Toast a break. Remember dear mortals even in the stock market 'Fighting doesn't make you a hero.' It is judgment that makes you a hero. Never jump in without knowing what you are up against! Wonder Woman signing off... for now.