BTIG analyst Andrew Harte keeps a Neutral rating on Toast after the company decided to remove the 99c order processing fee from its digital ordering suite. The analyst had estimated that the online ordering fee could generate $52M of gross profit during fiscal 2024, which represents 4% of the firm’s total gross profit estimate. BTIG believes the online ordering fee that was being paid by consumers was an effort by Toast to diversify its revenue streams. The removal could be viewed as a sign that the company recognizes there is a cap on the software-as-a-service fees its core small business restaurant customers are willing to pay over time, writes the analyst.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See the top stocks recommended by analysts >>
Read More on TOST:
- Toast to remove 99c order processing fee from new digital ordering suite
- Toast Inc call volume above normal and directionally bullish
- Toast price target raised to $27 from $21 at Goldman Sachs
- JPMorgan upgraded, JetBlue downgraded: Wall Street’s top analyst calls
- Toast initiated with a Buy at Jefferies