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TOST Helps Restaurants Fight Food Insecurity With New Initiative

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Key Takeaways

  • {\"0\":\"Toast unveils a $5M five-year Changemakers Program supporting restaurants tackling food insecurity.\",\"1\":\"The program will award $150K in grants, with 15 restaurants receiving $10K each to scale initiatives.\",\"2\":\"Toast projects 29% 2025 fintech and subscription gross profit growth, above prior 25-27% outlook.\"}

Toast, Inc. ((TOST - Free Report) ) recently launched the Toast Changemakers Program—a new initiative designed to uplift restaurants that are leading the charge against food insecurity. The Toast Changemakers Program is part of Toast’s larger $5 million, five-year commitment to combating food insecurity across the United States. This approach reflects Toast’s commitment to leveraging its platform and network to empower restaurants, operators and food service businesses that are actively working to fight hunger.

According to the U.S. Department of Agriculture, 13.5% of households experienced food insecurity in 2023. Against this backdrop, restaurants not only serve customers but also their communities—through food donations, charitable contributions and support for families in need. Per the National Restaurant Association’s 2023 State of the Restaurant Industry report, 84% of restaurant operators made charitable contributions between 2020 and 2023, with 75% of them donating food.

Recognizing this vital role, Toast, in partnership with Hello Alice and the Global Entrepreneurship Network (“GEN”), will award a total of $150,000 in grants to restaurants making an impact in their local communities. Specifically, 15 restaurants will be chosen to receive $10,000 each to continue and scale their food security initiatives. Bolstering the program’s momentum, acclaimed chef and Toast customer Tyler Florence has joined as a key partner and advocate, using his platform to promote the Changemakers Program and encourage restaurant leaders making a difference to apply.

The program is open not only to TOST customers but also to all eligible U.S. restaurants and food service businesses.

TOST’s Expansion Strategy Augurs Well, Market Woes Persist

Toast has made significant strides in its long-term growth strategy. The company has announced a robust outlook for 2025, projecting 29% year-over-year growth in fintech and subscription gross profit (higher than its prior 25–27% growth outlook). This momentum is being fueled by its strategy to expand in U.S. SMB restaurants as well as penetrate new markets. Its recent international expansion into Australia and a newly forged partnership with American Express highlight its potential to solidify its foothold in restaurant technology and financial services globally.

The Australia launch marks Toast’s fourth international market, expanding into new customer segments across enterprise, global and food and beverage retail. Toast onboarded its first customer, Graze Craze, as part of this initiative. It is gaining share across SMB markets, even in metros with more than 30% penetration, reflecting that its local go-to-market strategy is working. Net adds in 2025 are expected to exceed 2024’s total.

However, expanding beyond the United States exposes TOST to regional complexities, heightening execution risks. At the same time, escalating trade tensions and tariff uncertainties raise concerns over higher costs and weaker consumer purchasing power. Any consumer slowdown or cost inflation could dampen restaurant spending on technology, pressuring TOST’s performance given its heavy reliance on the restaurant industry.

TOST’s Zacks Rank & Stock Price Performance

TOST currently carries a Zacks Rank #2 (Buy). Shares of the company have gained 39.1% in the past year compared with the Zacks Internet-Software industry's growth of 38%.

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Other Stocks to Consider

Ubiquiti Inc. ((UI - Free Report) ) carries a Zacks Rank #1(Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here

In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti invests significantly in research and development activities to develop innovative products and state-of-the-art technology, expanding its addressable market and staying at the cutting edge of networking technology. The company believes its new product pipeline will help increase average selling prices for high-performance, best-value products, thus boosting the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.

Headquartered in Carlsbad, CA, Viasat Inc. ((VSAT - Free Report) ) carries a Zacks Rank #2. It designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment. It provides high-bandwidth, high-performance communication solutions to the public, as well as to military, enterprise, and government agencies. Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models.

InterDigital, Inc. ((IDCC - Free Report) ) currently carries a Zacks Rank #1. The company delivered an average earnings surprise of 54.27% in the trailing four quarters.

InterDigital’s global footprint, diversified product portfolio and the ability to penetrate different markets are impressive. It is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. Apart from its strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive significant value, considering the massive size of the market it licenses.


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