Toast
Unlike AMD, Toast is heating up in the kitchen. Shares of the popular cloud-based point-of-sale platform provider for restaurants have more than doubled over the past year. It's easy to see Toast's appeal, even if you haven't recently dined at one of the many eateries now leaning on Toast to close out customer transactions, manage third-party app orders, and tackle a growing number of behind the scenes operating functions.
There are now 127,000 locations on Toast, a 28% surge over the past year. Top-line growth has hinged largely on the success of growing its restaurant count. It's already a staple at 13% of the country's eateries, but there's still a lot of potential expansion on Toast's plate. The bottom line is no longer a cause for investor indigestion. After years of losses, Toast has turned profitable on a reported basis in back-to-back reports.
The stock may not seem cheap at 45 times forward earnings or even 33 times next year's projected net income. However, scalability should help future profits exceed revenue gains for the next few years. You won't have to wait long for the next serving of fresh financials. Toast reports its fourth-quarter results next week, after the market closes on Wednesday.
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