Restaurant Brands Asia Ltd Faces Bearish Momentum Amid Technical Downturn

Technical Momentum and Price Action

On 30 December 2025, Restaurant Brands Asia Ltd closed at ₹63.97, up 4.22% from the previous close of ₹61.38. The stock traded within a range of ₹61.05 to ₹64.50 during the session, yet remains significantly below its 52-week high of ₹89.53. The 52-week low stands at ₹59.50, indicating the stock is hovering near its lower price band, which aligns with the bearish technical signals observed.

The recent price momentum shift is underscored by the transition of the technical trend from mildly bearish to outright bearish. This change reflects increasing selling pressure and weakening investor confidence in the near term.

MACD and RSI Analysis

The Moving Average Convergence Divergence (MACD) indicator remains bearish on both weekly and monthly timeframes, signalling sustained downward momentum. The MACD line continues to stay below the signal line, confirming the dominance of sellers. Meanwhile, the Relative Strength Index (RSI) shows no clear signal on weekly or monthly charts, hovering in a neutral zone. This lack of RSI confirmation suggests the stock is neither oversold nor overbought, but the prevailing MACD bearishness outweighs any neutral RSI interpretation.

Moving Averages and Bollinger Bands

Daily moving averages reinforce the bearish stance, with the stock price trading below key averages such as the 50-day and 200-day moving averages. This positioning typically indicates a downtrend and potential resistance levels ahead. Bollinger Bands on weekly and monthly charts are mildly bearish, with the price gravitating towards the lower band, signalling increased volatility and downside risk.

Other Technical Indicators

The Know Sure Thing (KST) indicator presents a mixed picture: bearish on a weekly basis but mildly bullish monthly, suggesting some longer-term support may exist despite short-term weakness. Dow Theory assessments align with this, showing mildly bearish trends on both weekly and monthly scales. On-Balance Volume (OBV) is neutral weekly but bullish monthly, indicating that while recent volume trends do not favour the stock, longer-term accumulation may be occurring.

Comparative Performance and Market Context

Examining the stock’s returns relative to the Sensex reveals a stark underperformance. Over the past week, Restaurant Brands Asia Ltd declined by 0.9%, slightly outperforming the Sensex’s 1.02% fall. However, over the last month, the stock gained 2.7% while the Sensex dropped 1.18%, suggesting some short-term resilience.

Year-to-date (YTD) and longer-term returns paint a more concerning picture. The stock has lost 24.62% YTD and 20.46% over the past year, while the Sensex has gained 8.39% and 7.62% respectively. Over three and five years, the stock’s cumulative losses of 42.24% and 63.02% contrast sharply with the Sensex’s robust gains of 38.54% and 77.88%. This persistent underperformance highlights structural challenges facing the company and the leisure services sector.

Mojo Score and Grade Update

MarketsMOJO’s latest assessment downgraded Restaurant Brands Asia Ltd’s Mojo Grade from Sell to Strong Sell on 29 September 2025, reflecting deteriorating fundamentals and technicals. The company’s Mojo Score stands at 12.0, a low figure signalling weak overall quality and market sentiment. The Market Cap Grade is 3, indicating a relatively small market capitalisation that may contribute to higher volatility and liquidity concerns.

Sector and Industry Considerations

Operating within the Leisure Services sector, Restaurant Brands Asia Ltd faces headwinds from shifting consumer preferences and competitive pressures. The sector itself has shown mixed signals, with some companies adapting better to evolving market dynamics. The stock’s technical deterioration may partly reflect these broader sectoral challenges, compounded by company-specific issues.

Investor Implications and Outlook

Given the current technical landscape, investors should approach Restaurant Brands Asia Ltd with caution. The bearish momentum across multiple indicators suggests limited near-term upside potential. The absence of strong RSI signals implies the stock is not yet oversold, leaving room for further declines. The mixed signals from KST and OBV hint at possible longer-term support, but these are insufficient to offset the prevailing negative trend.

For risk-averse investors, the downgrade to Strong Sell and the company’s sustained underperformance relative to the Sensex reinforce the need for prudence. Those considering exposure to the leisure services sector may benefit from exploring higher-rated alternatives with more favourable technical and fundamental profiles.

In summary, Restaurant Brands Asia Ltd’s technical deterioration, combined with weak relative returns and a low Mojo Score, paints a challenging picture. The stock’s current trajectory suggests that any rallies may be short-lived unless accompanied by significant fundamental improvements or sectoral tailwinds.

Summary of Key Technical Indicators:

• MACD: Weekly and Monthly - Bearish


• RSI: Weekly and Monthly - Neutral (No Signal)


• Bollinger Bands: Weekly and Monthly - Mildly Bearish


• Moving Averages: Daily - Bearish (Price below 50-day and 200-day)


• KST: Weekly - Bearish; Monthly - Mildly Bullish


• Dow Theory: Weekly and Monthly - Mildly Bearish


• OBV: Weekly - No Trend; Monthly - Bullish

Price and Return Highlights:

• Current Price: ₹63.97


• 52-Week High/Low: ₹89.53 / ₹59.50


• 1 Week Return: -0.9% vs Sensex -1.02%


• 1 Month Return: +2.7% vs Sensex -1.18%


• YTD Return: -24.62% vs Sensex +8.39%


• 1 Year Return: -20.46% vs Sensex +7.62%


• 3 Year Return: -42.24% vs Sensex +38.54%


• 5 Year Return: -63.02% vs Sensex +77.88%

Mojo Ratings:

• Mojo Score: 12.0


• Mojo Grade: Strong Sell (Downgraded from Sell on 29 Sep 2025)


• Market Cap Grade: 3

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