1409 ET - Toast is expected to deliver strong growth in several areas, but per-location volume growth could be pressured as the restaurant industry remains slow and inflation in eating-out outpaces inflation at grocery stores, Baird analysts David Koning and Robert Bamberger say in a research note. Per-location volume could also be impacted by a mix in shift to smaller-volume locations now that Toast has rapidly penetrated the total addressable market, the analysts say. Smaller restaurants also buy fewer products, so the shift would drag on per-user revenue, although overall pricing benefits could go up since smaller restaurants pay higher processing fees, they say. (dean.seal@wsj.com)
(END) Dow Jones Newswires
May 21, 2024 14:10 ET (18:10 GMT)
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