They say necessity is the mother of invention. That's not always the case -- but the point is well taken. Take Toast (NYSE: TOST) as an example. Restaurants don't absolutely need its software to manage their complicated businesses. However, the tools it provides can certainly help them -- and many are recognizing this fact. That's why Toast's top line is expected to continue its growth streak this year with a 25% improvement.

So if the company's software is so great, then why is the stock down 65% from its 2021 peak? For a reason veteran investors have seen before. In fact, that reason is also why many of these veteran investors are eyeing this weakness as a buying opportunity -- Toast is facing a temporary headwind.

Managing a restaurant can be a major headache because there are so many moving parts. Kitchens, people, supplies, food (with expiration dates, by the way) payment processing, inspections, payroll, advertising, etc. It's a lot.

Continue reading

Source Fool.com