Can Topgolf's Toast POS Rollout Unlock Better Venue Efficiency?

Topgolf Callaway Brands Corp. MODG is expanding its rollout of the Toast point-of-sale (POS) system across the Topgolf venue base, positioning the platform as an operational tool aimed at improving in-venue efficiency as traffic trends improve. During the third quarter of 2025, management stated that venues operating on Toast have reported improvements in speed of service, which have contributed to better labor efficiency and higher spend per visit. The company indicated that the rollout will continue through 2026, with full implementation targeted by the end of the second quarter of 2026.

Management indicated that the POS upgrade is helping venues operate more effectively during periods of higher visitation. Faster order processing has improved service execution at locations using Toast, supporting Topgolf’s ability to accommodate increased traffic driven by recent value initiatives. As the company prioritizes traffic and visit frequency over pricing, management emphasized the importance of operational efficiency in maintaining venue performance as volumes increase.

Toast is also expected to support additional initiatives focused on simplifying the guest experience. Management confirmed that pay-at-bay and mobile food ordering will be piloted during the fourth quarter, with plans to scale these features in 2026, subject to favorable results. These tools are intended to streamline ordering and payment, which management believes can support food and beverage spend per visit while fitting within existing service flows.

The broader objective of the POS transition is to create a more standardized and scalable operating model across the Topgolf footprint. While management noted that the rollout remains in the early stages, the early productivity benefits reinforce the view that technology enablement will likely play a growing role in stabilizing venue-level economics. As adoption expands across the system, Toast appears positioned to support execution and improve efficiency as Topgolf continues to rebuild traffic momentum.

MODG’s Price Performance, Valuation & Estimates

Shares of MODG have gained 48.8% in the past six months against the industry’s fall of 1%. In the same time frame, shares of other companies like Acushnet Holdings Corp. GOLF have gained 11.5%, while American Outdoor Brands, Inc. AOUT has declined 21.5%.

Price Performance

MODG is currently trading at a discount compared with the industry, with a forward 12-month price-to-sales (P/S) ratio of 0.6. Conversely, industry players, such as Acushnet Holdings and American Outdoor, are trading at a P/S ratio of 1.91 and 0.51, respectively.

P/S (F12M)

The Zacks Consensus Estimate for MODG’s 2026 loss estimate has narrowed in the past 60 days.

MODG currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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