Disclosed is a toy racetrack having a toy vehicle launching section that, in a first configuration of the racetrack, launches a toy vehicle toward and through the open, central portion of a loop track section, preferably to impact a target, and in a transformed configuration of the racetrack, launches a toy vehicle through the track portion of the loop track section and preferably toward a catch tray. Two loop track sections are pivotably mounted to a tower, and target flags may be pivotably mounted to a loop section mounting block positioned at the top of the tower. Once one of the target flags is struck by a toy vehicle, an internal transformation mechanism is triggered that causes the loop track sections to pivot into a track engaging position in which the loop sections form terminal track portions for the track segments in the launching section of the racetrack.