When it comes to all-out growth, restaurant industry "tech operating system" Toast (NYSE: TOST) has continued to deliver since its 2021 IPO. But investors are demanding financial metrics that differ greatly from when this small financial technologist made its market debut. These days, investors are far more concerned about profitable growth.

By certain measures, Toast is making progress in getting itself in better financial shape. If the progress continues into 2024, perhaps Toast is a wonderful long-term value. But after reviewing the company a handful of times since the IPO and ultimately passing on making a purchase, I'm not so sure the stock is such a great deal right now. Here's why.

Toast recently reported its third-quarter 2023 earnings, and investors were pleased with further strong growth in revenue (up 37% year over year to $1.03 billion) and annualized recurring revenue (or ARR) up 40% to $1.22 billion.

Continue reading

Source Fool.com