Publish date:

Restaurant Payment Software Provider Toast Files for IPO

Toast plans IPO that could value the company at $20 billion as it hopes to capture restaurant sector recovery post-pandemic.
Author:

Toast, a restaurant payment software provider, has filed with the Securities and Exchange Commission for an initial public offering.

In its S-1 prospectus filed Friday with the SEC, Toast proposed an offering of $100 million, but that’s just a placeholder amount until it decides for sure. In February, The Wall Street Journal reported Toast was planning an IPO that could value it at $20 billion.

“Our restaurant-specific platform is fully integrated across point of sale, operations, digital ordering and delivery, marketing and loyalty, team management, financial technology solutions, and platform services to provide restaurant operators everything they need to run their businesses successfully,” Toast said.

“In short, we’re democratizing technology so that restaurants of all sizes can compete on an even playing field.”

Toast said its revenue doubled in the six months ended June 30, to $704 million. Its net loss expanded to $235 million during that half-year period, from $125 million last year.

TheStreet Recommends

“As of June 30, approximately 48,000 restaurant locations across approximately 29,000 customers, processing over $38 billion of gross payment volume in the trailing 12 months, partnered with Toast to optimize operations, increase sales, engage guests, and maintain happy employees,” the company said.

Moreover, “We believe we are in the early stages of capturing our addressable market opportunity,” Toast said.

“Although we are a leading platform serving the restaurant industry, as of June 30, the locations on our platform represented only about 6% of the approximately 860,000 restaurant locations in the U.S.”

Restaurants are rebounding from the worst of the pandemic’s, but there is concern about the Delta variant’s impact.

On Wall Street, stocks rose Friday after Federal Reserve Chairman Jerome Powell said the central bank could begin pulling back on stimulus this year since the economy has met the Fed's criteria on progress in inflation and employment.

The Dow Jones Industrial Average rose 215 points, or 0.62%, to 35,428, the S&P 500 gained 0.75% and the Nasdaq was up 1%. The S&P 500 and Nasdaq set new intraday highs on Friday.