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Toast boosts its outlook despite high food prices

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Aug 23, 2022
Toast's quarterly revenue
Data: S&P Capital IQ; Chart: Skye Witley; Axios

Restaurant ordering and payments company Toast boosted its full-year outlook for 2022. During its Q2 earnings, the company said it now expects revenue north of $2.6 billion.

Why it matters: The results show that consumers continued to eat outside the home even in a high inflation environment.

Yes, but: All eyes are on Toast's ability to maintain the momentum, while navigating a still tricky macro-economic landscape. Although overall inflation eased in July, food costs rose at the fastest pace since 1979.

Of note: Toast's revenue comes from software subscriptions and payments processing.

State of play: During the pandemic, Toast pitched its contactless capabilities — allowing restaurants to go online and use fewer wait staff. In this era of inflation, expect to see the company pitch itself as cost-cutting tech.

  • "I think in the back office, there's a unique opportunity for restaurants to really understand food cost optimization," CEO Chris Comparato said in the company's earnings call.

This article was originally published on Aug. 12, 2022.

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