Toast boosts its outlook despite high food prices
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.