Should You Buy Toast $TOST Stock? —Restaurant SaaS Breakdown 💰 $OLO $LSPD $SQ
Toast is launching its IPO this week. The restaurant industry is being disrupted with innovation and digital transformation. Which restaurant SaaS stock should be in your portfolio?
Toast is expected to begin trading on the New York Stock Exchange Wednesday, September 22, under the ticker "TOST". The IPO adds to the long list of technology companies going public over the past couple of years. In a nutshell, restaurants can run on Toast. The company is a one-stop-shop offering point of sale (POS), contactless ordering, hardware, online ordering and delivery, marketing, payroll and team management, and more. Toast is laser-focused on helping restaurants be successful.
Toast has four revenue streams:
1. Software-as-a-Service (SaaS) - includes solutions for POS, back-of-the-house kitchen displays, invoice management, digital ordering and delivery, marketing, loyalty, and team management solutions.
2. Fintech - includes payments, transaction fees, and even loans.
3. Hardware - Toast sells terminals, tablets, handheld devices, and accessories.
4. Professional services - includes installation and configuration.
Toast competes with POS vendors such as Lightspeed Commerce (NYSE: LSPD) and Square (NYSE: SQ). Additionally, the company competes with Olo (NYSE: OLO) in the online ordering and delivery category. With that said, Toast and Olo also partner, and the solutions can be integrated for a very powerful, best-of-breed solution utilizing Olo Rails. Rails allow integration with food delivery apps such as Doordash (NYSE: DASH), UberEats (NYSE: UBER), and GrubHub, which is formally Just Eat Takeaway.com (NASDAQ: GRUB).
In today's video, I break down Toast's business and compare it with the companies mentioned above. I also do deep-dive analysis on Toast's financial metrics and offer my opinions on the stock and if I'm buying. Please watch this video for more information, and don't forget to subscribe to the channel.