Research
From an illustrative “typical” restaurant with $1mm in revenue, we estimate Toast Payments can generate ~$3.2k in net revenue. In our Base Case scenario, we believe the adoption of Toast Capital, Restaurant Card, Pay Card, and bill-pay can increase Toast’s net revenue to ~$9.1k, up ~200% (vs. payments revenue only) from these FinTech solutions alone (in addition to the associated software services such as xtraCHEF/AP automation, PayOut, etc.), with payments and capital each accounting for ~35% of the total FinTech revenue and card issuance and bill-pay contributing ~24% and ~6%, respectively. In our Blue-Sky scenario, a combination of higher penetration and stronger economics of the same FinTech solutions could lead to a >500% uplift to ~$20k in total FinTech net revenue.