Toast Inc. (NYSE:TOST), a cloud-based restaurant software company, has reached a new 52-week high, with its stock price soaring to $43.41. This milestone underscores a period of significant growth for the company, reflecting investor confidence and market momentum. Over the past year, Toast has experienced an impressive 201.2% increase in its stock value, a testament to its strong performance and potential for future expansion in the competitive tech-driven restaurant management industry. The company's innovative solutions have continued to attract a growing customer base, contributing to its robust financial results and this latest stock price achievement.
In other recent news, Toast Inc. reported robust growth in its third quarter, leading to an upgrade in its full-year outlook. The cloud-based restaurant software company added approximately 7,000 new locations, a 28% year-over-year increase, bringing its 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.
DA Davidson lowered its price target for Toast Inc. from $55 to $44, despite the company's strong EBITDA growth, maintaining a Buy rating. The firm's revised target follows Toast's Q3 earnings report, which outperformed the firm's projections by 2% in total revenue and 51% in adjusted EBITDA. In contrast, Mizuho (NYSE:MFG) Securities increased its price target for Toast Inc. from $33 to $40, maintaining an Outperform rating, reflecting the company's ability to raise its annual recurring non-GAAP Gross Profit forecast from 27-29% to 32-33%.
These are among the recent developments for Toast Inc., which also 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.
InvestingPro Insights
Toast Inc.'s recent 52-week high is supported by several key metrics and insights from InvestingPro. The company's revenue growth remains strong, with a 29.5% increase over the last twelve months as of Q3 2023, reaching $4.66 billion. This growth trajectory aligns with Toast's expanding market presence in the restaurant software industry.
InvestingPro Tips highlight that Toast's stock price movements are quite volatile, which is evident in its recent surge. The company is trading near its 52-week high, with its current price at 98.73% of that peak. This performance is reflected in the strong returns over various timeframes, including a 44.93% increase in the past month and an 80.49% gain over the last three months.
While Toast is not currently profitable, InvestingPro Tips suggest that analysts expect the company to turn a profit this year, which could further fuel investor optimism. Additionally, the company's liquid assets exceed short-term obligations, indicating a solid financial position to support its growth initiatives.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 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.