Josh Brown Buys Toast Stock Again: Why He's Betting on the Restaurant Tech Company

Josh Brown's Return to Toast Stock

• 💡 Josh Brown, CEO of Ritholtz Wealth Management, announces he is buying shares of Toast for the third time, having previously traded the stock twice with mixed success.
• 🎯 He believes the current pullback in Toast's stock, driven by broader economic fears, presents an opportunity due to the company's recent strong performance.

Toast's Business Performance and Potential

• 🚀 Toast has added 28,000 net locations in 2024, serving businesses from small coffee shops to large hotel chains.
• 💰 The company operates with a take rate of approximately 56 basis points on gross payments volume and is expanding its service offerings beyond payment processing to include payroll and kitchen order management.
• ✅ Toast has become a profitable business, exceeding key metrics and demonstrating a strong performance, especially when compared to other payment processing companies like Block.

Wall Street Concerns and Brown's Long-Term View

• ⚠️ Previous concerns on Wall Street stemmed from Toast being an unprofitable company in an environment that punished such tech stocks.
• 📈 Morgan Stanley has named Toast one of its best ideas for the year, projecting significant earnings growth of 39% this year and over 50% next year.
• 🧠 Brown acknowledges Toast is a high beta name and will be volatile, but he is now willing to commit to it as a longer-term position, seeing it transition from speculative tech to an institutional player in financial services.