Toast has the Profitability Rank of 2. It has had trouble to make a profit.
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:
1.
Operating Margin %
2.
Piotroski F-Score
3. Trend of the
Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank
Toast's Operating Margin % for the quarter that ended in Dec. 2023 was -5.41%. As of today, Toast's Piotroski F-Score is 6.
Competitive Comparison
For the Software - Infrastructure subindustry, Toast's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Toast Profitability Rank Distribution
For the Software industry and Technology sector, Toast's Profitability Rank distribution charts can be found below:
* The bar in red indicates where Toast's Profitability Rank falls into.
Toast Profitability Rank Calculation
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.
The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.
Toast has the Profitability Rank of 2. It has had trouble to make a profit.
Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.
Profitability Rank is based on these factors:
1. Operating Margin %
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Toast's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
2. Piotroski F-Score
The zones of discrimination were as such:
Good or high score = 8 or 9
Bad or low score = 0 or 1
Toast has an F-score of 6 indicating the company's financial situation is typical for a stable company.
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank
Toast (TOST) Business Description
Traded in Other Exchanges
Address
401 Park Drive, Suite 801, Boston, MA, USA, 02215
Toast is a U.S.-based restaurant technology company that provides point-of-sale, payment processing, and various software services to 99,000 restaurant locations across the United States at the end of September 2023. The firm generates sales from software subscription fees, as a percentage take rate from each financial transaction it processes, from loan origination and servicing fees from its Toast Capital arm, and from hardware installation and professional services. Unlike competitors, Toast intermediates every payment transaction on its platform, processing some $92 billion in gross platform volume in 2022. The firm's product offerings span point-of-sale systems, inventory and payroll management, delivery integration, e-commerce ordering, reservation management, and loyalty programs.
Executives
| James Michael Matlock |
officer: Principal Accounting Officer |
TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215 |
| Brian R Elworthy |
officer: General Counsel |
TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215 |
| Aman Narang |
director, officer: See Remarks |
TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215 |
| Elena Gomez |
officer: Chief Financial Officer |
TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215 |
| Stephen Fredette |
director, officer: Co-President |
TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215 |
| Christopher P Comparato |
director, officer: Chief Executive Officer |
TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215 |
| Bessemer Venture Partners Ix L.p. |
10 percent owner |
C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538 |
| David Yuan |
director |
250 MIDDLEFIELD RD, MENLO PARK CA 94025 |
| Mark J Hawkins |
director |
C/O LOGITECH, INC., 6505 KAISER DRIVE, FREMONT CA 94555 |
| Richard Kent Bennett |
director |
1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538 |
| Technology Investment Dining Group, Llc |
10 percent owner |
18 BANK STREET, LEBANON NH 03766 |
| Jonathan Grimm |
10 percent owner, officer: Chief Technology Officer |
TOAST, INC., 401 PARK DRIVE, SUITE 801, BOSTON MA 02215 |
| Paul D Bell |
director |
C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682-2244 |
| Hmi Capital Management, L.p. |
10 percent owner |
555 CALIFORNIA STREET, SUITE 4900, SAN FRANCISCO CA 94104 |
| Hmi Capital Partners, L.p. |
10 percent owner |
C/O HMI CAPITAL MANAGEMENT, L.P., 555 CALIFORNIA STREET, SUITE 4900, SAN FRANCISCO CA 94104 |
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