BTIG Weighs in on Toast Inc. (TOST) New Online Order Fee

BTIG analyst Andrew Harte weighed in on Toast Inc. (NYSE: TOST) following news that implementing a $0.99 fee to consumers of “Toast Online Ordering Channels” on orders greater than $10.

The analyst's main thoughts following the news are: 1) operators are going to be irritated but do not have much negotiating power, 2) consumers are likely to look past the $0.99 fee on TOST's online ordering capability, 3) positive upside revenue opportunity, and 4) a potential nexus with the Biden administration’s “junk fee” push that warrants watching.

"The big outstanding question for us is what percentage of orders come through Toast Online Ordering Channels," the analyst commented. "TOST has 21 online ordering integration partners listed on its website, including large marketplaces such as Uber Eats (UBER, Buy, $50 PT; Analyst: Jake Fuller), which likely control much of the online ordering market share related to TOST restaurants. We note that NPD Group (Private) estimates that 15% of all restaurant orders were digital during FY22, and we believe TOST would peg its online ordering opportunity at 15% of its orders as such."

reiterated a Neutral rating

For an analyst ratings summary and ratings history on Toast Inc. click here. For more ratings news on Toast Inc. click here.

Shares of Toast Inc. closed at $22.88 yesterday.

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