A new and improved automated bun handling and toasting system and method are disclosed comprising a plurality of horizontally oriented bun storage tubes mounted upon a carousel, and an indexing system operatively connected to the carousel so as to rotate the carousel in a predetermined incremental manner and thereby dispose a particular one of the plurality of horizontally oriented bun storage tubes at a predetermined discharge position such that a bun can be discharged from the particular bun storage tube. The discharged bun has a vertical orientation, however, a bun separator separates the bun into its crown and heel bun segments which then attain horizontal orientations with the internal surface portions facing upwardly so as to pass through a toaster appliance so as to be toasted.