The Restaurant Tech Comeback Trade

Eating out is still a priority, but operators are done paying for “nice-to-have” software.

The winners are the platforms that make the line move faster, the staff more efficient, and the margins less fragile.

This week’s watchlist leans into that practical, paycheck-minded tech cycle.

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Toast, Inc. (TOST)

Catalyst: When restaurants get serious about margins, the software bill becomes an investment, not an expense

Toast is built for the messy reality of restaurants: peak-hour chaos, staffing gaps, inventory headaches, and customers who will absolutely abandon a cart if checkout takes five seconds too long. The bull case is not “restaurants are trendy again.” It is that operators keep modernizing because labor is expensive and competition is brutal, so they need better ordering, payments, scheduling, and loyalty tools.

If Toast keeps adding locations while improving unit economics, it becomes less of a growth story and more of a consistency story. That is usually when the market starts taking it more seriously.

What to watch: Location growth, gross profit trends, attach rates for add-on modules, and whether management signals durable margin improvement.

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Nutanix (NTNX)

Catalyst: Hybrid cloud keeps winning because companies hate ripping out what already works

Nutanix lives in the real world where businesses have legacy systems, compliance constraints, and teams that do not want to migrate everything to one cloud provider on a rigid timeline. The pitch is flexibility: modernize infrastructure without turning it into a multi-year science project.

This stock can move when customers show they are signing larger deals and sticking around, because it suggests the product is becoming embedded, not optional. It is not a flashy AI headline name. It is more like the quiet infrastructure of IT budgets that still get approved even when the CFO is grumpy.

What to watch: Subscription and recurring revenue trends, customer retention, large-deal momentum, and any commentary on deal cycles speeding up or slowing down.

Klaviyo (KVYO)

Catalyst: E-commerce brands still need growth, and ads are expensive, so owned marketing gets extra love

Klaviyo is basically the “talk to your customers without paying a toll every time” toolkit. When ad costs rise or platforms change the rules, brands lean harder into email, SMS, and lifecycle messaging because it is one of the few channels they can control.

The key here is whether Klaviyo can keep moving upmarket and prove that it is not just a tool for smaller online shops. If it becomes a must-have system of record for customer engagement, retention improves and expansion gets easier.

What to watch: Net revenue retention, upmarket customer wins, growth in SMS and multi-product adoption, and operating discipline as the business scales.

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On Holding (ONON)

Catalyst: Premium brands can still grow if they stay cool and keep expanding distribution the right way

On is a brand story with a scoreboard. The brand has been hot, but the real test is whether it can keep scaling without losing what made it special. Premium footwear is crowded, and consumers can be loyal one month and distracted the next, so execution matters.

If On keeps showing strong demand while expanding into new categories and geographies, it can keep compounding. If inventory builds or discounting creeps in, the market tends to get nervous quickly because premium brands are supposed to feel… premium.

What to watch: Revenue growth by region, inventory levels, gross margin stability, and signals that the brand is gaining repeat customers, not just first-time hype buyers.

Crocs (CROX)

Catalyst: The “ugly-but-it-works” product cycle is still alive, and cash flow is the punchline

Crocs is one of those companies that keeps surviving jokes and then quietly printing cash. The brand has proven it can be more than a fad, and the business often comes down to two things: demand durability and discipline. If the company manages inventory well and keeps marketing efficient, it does not need to be fashionable in the traditional sense. It just needs to stay relevant.

This is also the type of stock where valuation and execution can matter more than hype. When it is running well, the cash flow story becomes hard to ignore.

What to watch: Unit demand trends, inventory and discounting signals, operating margin direction, and how management talks about brand momentum versus normalization.

Final Word

This week is a practical-growth lineup. Restaurant tech and customer engagement software are getting budget because they help businesses do more with fewer headaches. On and Crocs are the consumer side of the same idea: brands that either earn repeat purchases or get humbled fast. If you want a theme, it is simple: real adoption, real efficiency, real habits. The next earnings cycle will tell you which of these names are building staying power versus just catching a temporary wave.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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