Toast's Superior Restaurant Platform Underpins a Compelling Growth-at-Scale Narrative

We take a generally positive view of Toast's strategy, which seeks to capitalize on two major tailwinds in the restaurant industry: the adoption of cloud-deployed point-of-sale systems and the uptake of technology-enabled solutions, with operators looking to improve operating efficiency as industry margins are tighter than ever. As the market leader in a growing vertical, Toast's heavy investments in onboarding new units, building out platform functionality, developing an ecosystem of partner application programming interfaces, or APIs, and filling holes in the platform through targeted roll-up acquisitions strike us as appropriate.