Overview
Toast, a restaurant software startup, seeks to raise $825M in its IPO next week. Toast grew from having its technology in 6,000 restaurant locations in 2017 to 33,129 as of June 2020, adding 14,813 locations through June 2021 for a total of 47,942 sites. The company's revenue grew 105% YoY from $344 million to $704 million during the six months ended June 2021. Two acquisitions have supplemented toast's organic growth. In June, it acquired xtraChef, which offers back-office technology for restaurants, two years after acquiring HR and payroll software provider StratEx.
The pandemic has challenged the restaurant industry, from moving to all take-out/delivery to welcoming guests back inside. The pandemic forced an industry that was slow to adopt technology to implement it in multiple facets for survival. Menus, orders, and payments shifted digitally. Toast offers software to help the industry's new host of challenges. With the labor shortage, the software has filled in for numerous employees. Toast processed over $38 billion in gross payment volume in the trailing 12 months. Industry growth will be driven by incremental spending on restaurant technology to increase as more operators add tools to help their operations. According to the filing, restaurants in the U.S. spent about $25 billion on technology in 2019, making up less than 3% of the restaurant industry's total sales. The company expects technology spend to increase to $55 billion by 2024.
Our key investment points:
On the call, we will cover:
- Growth drivers
- Product analysis
- The competitive set
- TAM analysis
- Peer comparison
- Valuation
and more.
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At the time of the event, CLICK HERE for the live webcast and materials. |
