Toast fee removal ‘incremental negative’ for story, says William Blair

William Blair keeps an Outperform rating on Toast after the company announced it will be removing the 99c digital order processing fee given negative customer feedback. The update is an “incremental negative for the story,” reducing some near-term upside to estimates, the analyst tells investors in a research note. More importantly, it is still to be determined how this fee could impact Toast’s perception and standing in the restaurant community, says the firm. However, Blair still believes Toast can support sales growth over the next years through price increases on core products.