Toast Stock Plunges After It Eliminates Controversial Fee
Shares of restaurant technology company Toast (NYSE: TOST) plunged on Wednesday morning after the company eliminated a controversial fee on transactions. As of 9:45 a.m. ET, Toast stock is down almost 11%. But I believe the market is reacting wrongly to this news. Here's why.
In June, reports surfaced that Toast was adding a $0.99 processing fee on all online orders over $10. This fee wasn't for the roughly 85,000 restaurant locations that use Toast's technology but rather for the customers of the restaurants. Needless to say, Toast's customers were infuriated.
The fee went into effect on July 10. But the uproar was so great that Toast today announced that it's taking the fee away. I believe Toast management said it best in its apology letter to customers: "We made the wrong decision."
Source Fool.com
