Toast's Strong Value Proposition Continues to Attract Restaurateurs Amid a Tough Landscape

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, and filling holes in the platform through targeted roll-up acquisitions strike us as appropriate.