![]() This includes products such as online ordering, payroll management, reporting & analytics, email marketing, loyalty program, customer financing, and more. The company then offers 15+ elective products that restaurants can choose to deploy according to their specific needs. These three products are the heart of the company as every restaurant needs them. Toast’s main three products are POS, Toast Hardware, and Payment Processing. This is where Toast comes in and tries to disrupt the market by providing a platform with different products that fulfill all needs. As a result, a lot of restaurants are using multiple products from different companies which makes their operation very complex. This ranges from POS, websites, marketing, payments, Payroll, Inventory, analytics, Take out, and a lot more. The restaurant industry is one of the largest vertical markets as there are many layers to it. The company provides an end-to-end platform for restaurants to efficiently operate and manage their business. Toast is a cloud-based restaurant software company founded in the US in 2011. Therefore, I believe the company is a hold until it is able to show a clear path to profitability. The company has strong potential and high revenue growth however, margins and profitability remain a huge issue. After the huge drop, the current valuation seems fair compared to peers and other SaaS companies. This presents a huge TAM (total addressable market) for Toast to grow into with its full suite of offerings. ![]() This means it focuses solely on one industry, and in this case, it is the restaurant industry, which is one of the largest and under-penetrated vertical markets. Unlike most SaaS (software as a service) companies that operate horizontally, Toast is a vertical SaaS company. It is currently trading at $15.36, representing a 76% drop from its all-time high. The company went public last September at an IPO price of $55.78 but has been dropping non-stop since. ![]() Toast ( NYSE: TOST) is a company that provides POS (point of sale) and software solutions for restaurants of all sizes. Visualspace/E+ via Getty Images Investment Thesis
0 Comments
Leave a Reply. |