Josh Brown Explains Toast's Breakout and Dominance in Restaurant Tech

Toast's Market Performance and Potential

• 📈 Toast is experiencing a significant breakout, up 4.5% this week and nearly 22% year-to-date, with a $25 billion market cap.
• 🎯 The stock is poised to make a new 52-week high, having previously hit $45 in May and consolidating on low volume, indicating a strong setup for further gains.

Toast's Business Model and Client Inertia

• 🔑 Toast has effectively dominated the restaurant and hospitality space, moving beyond just a payments provider.
• 💡 While initial setup costs for terminals and handheld devices are high, clients demonstrate strong inertia and rarely leave once integrated.
• 🚀 The company is securing larger enterprise deals, including with Applebee's and the Marriott chain, and is beginning its international expansion.

Investment Conviction and Market Position

• 💰 Josh Brown considers Toast a conviction long, recently adding to his position, and is surprised the stock is still trading around $44.
• 🌟 The company's growth in cash flows, combined with client stickiness, makes it a rare and valuable asset, drawing parallels to early-stage Salesforce.
• 📊 Toast is becoming the industry standard for restaurant payments and technology solutions.