Baird thinks Toast could be down about 10% on removal of online ordering fee

Baird analyst David Koning notes that Toast announced plans to remove a 99c online ordering fee that very recently went into effect. The firm thinks the stock could be down about 10% on the news, noting that it had previously estimated this fee could’ve added about 5%-10% of total company adjusted revenue. Merchant clients were “clearly frustrated based on feedback online” and while the firm appreciates the willingness to listen to clients, it believes “price movements generally are a net positive even after considering attrition,” the analyst added. Toast shares are down $3.76, 14%, or $23.00 in morning trading.