Toast Inc. (NYSE:TOST), a cloud-based restaurant software company, has reached a new 52-week high, with its stock price soaring to $40.56. This milestone underscores the company's significant growth trajectory over the past year, which has been marked by a remarkable 178.24% increase in its stock value. Investors have shown increased confidence in Toast's business model and its ability to capitalize on the digital transformation trends within the restaurant industry. The company's innovative platform, which helps restaurants streamline operations and enhance customer experiences, has been a key driver of its financial performance and stock price appreciation. As Toast continues to expand its market presence and develop new solutions, stakeholders are closely monitoring its potential for sustained growth in the competitive tech landscape.
In other recent news, Toast Inc. delivered a robust Q3 performance, which led to an upward revision of the company's full-year outlook. The cloud-based restaurant software company reported significant expansion, adding approximately 7,000 net new locations, a 28% year-over-year increase, bringing the total to nearly 127,000. Recurring gross profit streams grew by 35%, with adjusted EBITDA reaching $113 million and GAAP operating income hitting $34 million.
In light of these developments, DA Davidson lowered its price target for Toast from $55 to $44, maintaining a Buy rating due to strong EBITDA growth. The firm's revised target follows the company's Q3 earnings, which surpassed DA Davidson's projections by 2% and adjusted EBITDA outperforming their expectations by 51%.
Simultaneously, Mizuho (NYSE:MFG) Securities increased its price target for Toast from $33 to $40, maintaining an Outperform rating. This adjustment reflects the company's ability to raise its annual recurring non-GAAP Gross Profit forecast from 27-29% to 32-33%.
In addition to financial growth, Toast launched new customer engagement products and expanded into food and beverage retail and international markets, including a partnership with Potbelly (NASDAQ:PBPB) Sandwich Works. However, operational expenditures increased by 11% due to investments in sales, marketing, and research and development. For the full year, Toast projects an adjusted EBITDA between $352 million to $362 million, reflecting a 26% margin. These are some of the recent developments surrounding Toast Inc.
InvestingPro Insights
Toast Inc.'s recent achievement of a new 52-week high is further supported by InvestingPro data, which reveals a staggering 171.38% price total return over the past year. This impressive performance is complemented by strong short-term momentum, with a 22.19% return in just the last week and a 41.81% return over the past month. These figures align with the article's emphasis on Toast's significant growth trajectory.
InvestingPro Tips highlight that Toast is trading near its 52-week high, corroborating the article's main point. Additionally, analysts predict the company will be profitable this year, which could be a key factor driving investor confidence. However, it's worth noting that Toast currently suffers from weak gross profit margins, with InvestingPro data showing a gross profit margin of 23.36% for the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Toast Inc., providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.