Is Sparket Integration Shaping a New Growth Path for Toast (TOST) in Skill-Based Gaming?

• In September, Sparket announced its integration with Toast, allowing Sparket’s player base and partners access to Toast’s real-time multiplayer skill-based gaming platform featuring games such as 21 Hustle, Gin Rummy, and Pinfall.
• This partnership exemplifies Toast’s move to blend skill-based real-money gaming with rapid integration capabilities and regulatory compliance, expanding its presence within the gaming ecosystem.
• We’ll explore how this expansion into multiplayer skill gaming integration could influence Toast’s long-term growth as outlined in the analyst narrative.

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Toast Investment Narrative Recap

If you are considering Toast as an investment, the central thesis revolves around its ability to leverage integrated software and payment solutions to drive growth in restaurants and, more recently, real-money skill gaming. The Sparket integration brings new exposure to multiplayer gaming, but it does not materially shift Toast’s most important short-term catalyst: continued transaction volume and fintech revenue from restaurants. However, risks remain from potential stagnation in gross payment volume per location and competitive industry pressures.

The partnership with American Express, announced prior to the Sparket deal, is especially relevant. It reinforces Toast's position as a digital-first payments innovator, supporting recurring transaction-based revenues, a factor many see as critical for driving near-term earnings momentum, particularly as Toast faces broader sector headwinds in hospitality.

Yet, despite Toast’s growth initiatives, investors should also consider the impact of competitive threats and shifting industry trends that...

Read the full narrative on Toast (it's free!)

Toast's outlook anticipates $8.9 billion in revenue and $738.5 million in earnings by 2028. This scenario reflects an annual revenue growth rate of 17.3% and an increase in earnings of $514.5 million from the current $224.0 million level.

Uncover how Toast's forecasts yield a $49.71 fair value, a 36% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided 13 fair value estimates for Toast ranging from US$26.52 to US$58.86 per share. In light of Toast’s push into new gaming segments, your view on transaction-based earnings growth could set expectations apart from the consensus.

Explore 13 other fair value estimates on Toast - why the stock might be worth 28% less than the current price!

Build Your Own Toast Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Toast research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Toast research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Toast's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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