Piper Sandler analyst Billy Fitzsimmons has assumed coverage of Toast with an Overweight rating and established a price target of $32. This rating initiation reflects a positive outlook on the company's stock performance.

Analyst Rating and Target

The research note highlights the firm's confidence in Toast's market position. The Overweight rating suggests that the stock is expected to outperform the broader market or its sector peers.

Toast released its latest Restaurant Trends Report for Q1 2026, detailing how restaurant operators are utilizing its AI assistant, Toast IQ. The report analyzes aggregated data from 125,000 U.S. restaurant locations that used the tool between Jan. 1, 2026, and March 31, 2026. The findings indicate a shift from experimentation to daily operational use, with operators leveraging the technology to manage sales, labor, and inventory.

Key Adoption Metrics

The data reveals distinct usage patterns across different restaurant segments and operational categories. Fine dining locations adopted Toast IQ at a higher rate than fast-casual establishments.

Operational Focus Areas

Operators primarily used Toast IQ to address core business decisions. Sales and revenue were the dominant topics, followed closely by menu and inventory management. The report noted that 26% of restaurants initiated conversations regarding menu optimization, while 13% focused on labor costs and efficiencies.

The AI assistant allows users to take immediate action based on insights, such as adjusting stock or editing auto clockouts. The most common prompt was a request for a "short, easy-to-read daily briefing."

Platform Reach and Methodology

Toast serves approximately 171,000 locations as of March 31, 2026. The report is based on anonymized and aggregated inputs from selected cohorts that adopted Toast IQ during the specified period. Toast clarified that some features may not have been available to all customers throughout the entire timeframe.