Latest news with #restaurantsoftware
Yahoo
19 hours ago
- Business
- Yahoo
Why Is Olo (OLO) Stock Soaring Today
Shares of restaurant software company (NYSE:OLO) jumped 13.5% in the afternoon session after it entered into a definitive agreement to be acquired by software investment firm Thoma Bravo in an all-cash transaction valued at approximately $2 billion. The deal will see Olo shareholders receive $10.25 per share in cash. This price represents a significant 65% premium to the company's unaffected share price of $6.20 on April 30, 2025, which was the last trading day before media reports surfaced about a potential transaction. The acquisition, which has been unanimously approved by Olo's board, is expected to accelerate the company's growth and enhance its offerings for the more than 750 restaurant brands it serves. Upon completion of the deal, anticipated by the end of 2025, Olo will become a privately held company and its shares will no longer be traded on public stock exchanges. Is now the time to buy Olo? Access our full analysis report here, it's free. Olo's shares are quite volatile and have had 16 moves greater than 5% over the last year. But moves this big are rare even for Olo and indicate this news significantly impacted the market's perception of the business. Olo is up 31.3% since the beginning of the year, and at $10.12 per share, has set a new 52-week high. Investors who bought $1,000 worth of Olo's shares at the IPO in March 2021 would now be looking at an investment worth $291.22. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
a day ago
- Business
- Reuters
Thoma Bravo to buy Olo in deal valuing restaurant tech firm at $2 billion
July 3 (Reuters) - Buyout firm Thoma Bravo has agreed to acquire Olo (OLO.N), opens new tab in an all-cash deal valuing the company at about $2 billion, the restaurant software provider said on Thursday, sending its shares up more than 13% in early trading. Olo shareholders will receive $10.25 per share in cash under the terms of the deal, representing a 65% premium to the stock's closing price on April 30, the last trading day prior to reports about a potential sale. New York-based Olo will become a privately held company following the deal, which the company said is expected to boost its growth by strengthening its platform and offerings. The company, founded in 2005, provides digital ordering, payments and customer engagement solutions for more than 750 restaurant brands across 88,000 global locations. Its customers include popular chains such as Denny's, P.F. Chang's, Nando's and Cold Stone Creamery, according to its website. Olo laid off about 9% of its workforce last year in a bid to stem its losses, following an 11% job cuts announcement in 2023. The company has since improved its profitability, reporting a net income of $1.81 million in the January-March quarter. It had 617 employees in the U.S. as of December 2024. The deal with Thoma Bravo, one of the largest software-focused investment firms with about $184 billion in assets under management, is expected to close by the end of 2025. Olo is required to pay a termination fee of $73.7 million in cash if the deal falls through under certain circumstances. Goldman Sachs is serving as the exclusive financial adviser to Olo.
Yahoo
4 days ago
- Business
- Yahoo
Here is What to Know Beyond Why Toast, Inc. (TOST) is a Trending Stock
Toast (TOST) has recently been on list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Shares of this restaurant software provider have returned +0.6% over the past month versus the Zacks S&P 500 composite's +6% change. The Zacks Internet - Software industry, to which Toast belongs, has gained 11.1% over this period. Now the key question is: Where could the stock be headed in the near term? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For the current quarter, Toast is expected to post earnings of $0.23 per share, indicating a change of +1050% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. The consensus earnings estimate of $0.95 for the current fiscal year indicates a year-over-year change of +3066.7%. This estimate has remained unchanged over the last 30 days. For the next fiscal year, the consensus earnings estimate of $1.21 indicates a change of +28% from what Toast is expected to report a year ago. Over the past month, the estimate has remained unchanged. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Toast. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. For Toast, the consensus sales estimate for the current quarter of $1.53 billion indicates a year-over-year change of +23.5%. For the current and next fiscal years, $6.01 billion and $7.27 billion estimates indicate +21.2% and +20.9% changes, respectively. Toast reported revenues of $1.34 billion in the last reported quarter, representing a year-over-year change of +24.4%. EPS of $0.2 for the same period compares with -$0.15 a year ago. Compared to the Zacks Consensus Estimate of $1.34 billion, the reported revenues represent a surprise of -0.26%. The EPS surprise was +5.26%. Over the last four quarters, Toast surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period. Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Toast is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Toast. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Toast, Inc. (TOST) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Toast: Q1 Earnings Snapshot
BOSTON (AP) — BOSTON (AP) — Toast Inc. (TOST) on Thursday reported first-quarter earnings of $56 million. The Boston-based company said it had net income of 9 cents per share. Earnings, adjusted for one-time gains and costs, were 20 cents per share. The results beat Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 19 cents per share. The restaurant software provider posted revenue of $1.34 billion in the period, matching Street forecasts. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on TOST at Sign in to access your portfolio
