Toast’s Stock Jumps 10% After Earnings Report—But Investor Concerns Continue To Weigh It Down

ByJeff Kauflin,

Forbes Staff.

T

oast, a Boston-based fintech that makes restaurant software for accepting payments and managing orders, is the biggest company in its industry, with a 15% market share and $22 billion market value. It’s also the fastest growing, yet its stock performance this year tells a different story.

During its third quarter earnings call yesterday, Toast said revenue was $1.6 billion, up 25% from a year ago, and net profit was $105 million, an 88% rise. The results handily beat Wall Street analysts’ expectations, according to FactSet. While its stock is trading up 10% today, it’s just 7% higher than where it ended last year despite consistently strong growth.