Analyst Assesses Impact Of $0.99 Surcharge On Toast's Financials, Potentially Benefiting Gross Profit And EBITDA
Portfolio Pulse from Anusuya Lahiri
Stephens & Co. analyst Charles Nabhan has reiterated an Equal-Weight rating and a $22 price target for Toast Inc (NYSE:TOST). The analyst believes that the company's $0.99 surcharge on orders over $10 could potentially increase its gross profit by ~4% annually and EBITDA, assuming the fees are not re-invested. However, the surcharge could also deter further adoption of online ordering and favor non-Toast platforms. The surcharge will be rolled out nationwide on July 10.
June 28, 2023 | 6:32 pm
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Toast Inc's new $0.99 surcharge could potentially increase its gross profit and EBITDA, but could also deter further adoption of online ordering. The surcharge will be rolled out nationwide on July 10.
The new surcharge could potentially increase Toast Inc's gross profit and EBITDA, which would be positive for the company's financial performance. However, the surcharge could also deter further adoption of online ordering, which could negatively impact the company's revenues. Therefore, the overall impact on the company's stock price is uncertain.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100