Toast, Inc. (TOST)

Toast makes a point-of-sale system for restaurants and earns above all from processing their payments.

A restaurant needs more than a terminal: an order must reach the kitchen, split between guests, account for staff tips and deduct ingredients from stock. The system covers all of that and replaces several separate programmes, so once installed it is rarely changed.

The software subscription is the smaller part of income. Most comes from payment processing: a share of every bill paid by card. Revenue therefore grows with the venue's turnover, not only with the number of installations. Risks: competition from payment companies, restaurant closures in a downturn and sensitivity to consumer spending. The company pays no dividend.