Shares of Toast Inc. have declined more than 30% since the start of 2026, pressured by a broader sell-off in the SaaS sector and volatility in the restaurant industry. Nevertheless, the company’s operational performance remains strong: first-quarter revenue grew 22% to $1.63 billion, exceeding analyst expectations amid active adoption of AI solutions.

Toast stock was trading at 5.3 times projected 2026 ARR, making it an attractive asset for long-term investors. Despite the drop in quotes, the company’s annual recurring revenue (ARR) jumped 26% to $2.2 billion, while the number of served locations reached 171,000.

The current market valuation of the company stands at less than 15 times 2027 projected earnings, which analysts call an “absolute bargain” for a stock with such a growth rate. Earnings per share (EPS) more than doubled compared to last year, reaching $0.20, while adjusted EBITDA increased 35% to $179 million for the quarter.

Toast raised its full-year earnings and revenue forecast, expecting further expansion into adjacent segments such as grocery stores, hotels, and international markets. Over 40,000 locations already use the Toast IQ platform, confirming the company’s status as a leader in the digital transformation of the restaurant business despite temporary investor pessimism.