Toast launches ToastIQ to boost restaurant efficiency and revenue

BOSTON - Toast Inc. (NYSE: TOST), a comprehensive digital platform for restaurants valued at over $20 billion, has launched ToastIQ, an intelligence engine aimed at enhancing restaurant operations through AI-driven prompts, personalized recommendations, and automated workflows. With impressive revenue growth of 28% year-over-year, Toast continues to expand its reach, as ToastIQ is integrated into Toast’s platform and leverages data from over 130,000 locations to support roles from servers to general managers. According to InvestingPro analysis, the company maintains a strong financial position with a healthy current ratio of 2.44.

The initial features of ToastIQ focus on improving server performance and marketing efforts. Menu Upsells suggest additional items to guests, aiming to increase check sizes. An early adoption of this feature at Wylie and Rum in Atlanta resulted in a 6% rise in average order value. Digital Chits provide servers with guest details such as special occasions and visit history, aiming to personalize the dining experience. Shift at a Glance delivers timely updates to staff, enhancing communication and service readiness. With the company’s upcoming earnings report on May 8, investors can gain deeper insights through InvestingPro’s comprehensive analysis, which includes 8 additional key tips and a detailed Pro Research Report.

ToastIQ also offers tools to simplify digital advertising and marketing campaigns. The AI-Marketing Assistant creates cross-channel marketing plans, while the Advertising feature connects ad performance directly to transactions, offering visibility into the effectiveness of digital ads. Early beta users reportedly earned an average of $8 for every dollar spent on Advertising.

Steve Fredette, President and Co-Founder of Toast, expressed the company’s vision for ToastIQ as a transformative tool for the restaurant ecosystem, driving significant business outcomes through intelligent features and integrated products.

This innovation comes as Toast continues to evolve its platform, aiming to serve as a partner to restaurant professionals rather than just a tool. The press release statement notes that ToastIQ represents the beginning of a new stage of innovation where software becomes an active partner in elevating the craft of hospitality.

Toast, known for its cloud-based, all-in-one digital technology platform, provides solutions across various aspects of restaurant operations. The company’s forward-looking statements in the press release highlight its commitment to the future development of ToastIQ and its potential impact on restaurant operations and guest experiences. However, as with any forward-looking statements, they are subject to risks and uncertainties.

For more information on ToastIQ’s early release features, customers can visit the Toast Test Kitchen on Toast Shop. For investors interested in Toast’s financial performance and growth potential, InvestingPro offers detailed analysis of the company’s metrics, including its impressive market position and financial health score, which currently rates as "GOOD" according to InvestingPro’s comprehensive evaluation system.

In other recent news, Toast Inc. is preparing to release its first-quarter earnings, with analysts expecting results to align with or slightly surpass projections. DA Davidson has adjusted its price target for Toast to $40, maintaining a Neutral rating, reflecting a cautious outlook ahead of the earnings report. In a significant development, Toast has announced a partnership with Dine Brands Global, integrating its technology across Applebee’s locations nationwide. Despite this major deal, DA Davidson notes that it may not materially impact Toast’s financial outlook but highlights the company’s potential for growth.

Additionally, BMO Capital Markets has revised its price target for Toast to $44, citing steady growth in gross payment volume and subscription services. They maintain an Outperform rating, suggesting optimism about the company’s future performance. Meanwhile, Wells Fargo has upgraded Toast’s stock rating from Underweight to Overweight, raising the price target to $39. This upgrade is based on Toast’s substantial market share gains in the U.S. restaurant sector and the potential for further growth through Enterprise deals.

Toast’s recent acquisition of Potbelly’s and its ability to secure large-scale partnerships underscore its expanding influence in the restaurant technology market. As these developments unfold, investors will be keenly watching Toast’s upcoming earnings report and any updates to its financial guidance.

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