Why is Restaurant Brand falling/rising?
As of 20-Jun, Restaurant Brands Asia Ltd is priced at 79.89, with a recent short-term gain of 5.55% but a decline of 24.99% over the past year. Despite high institutional holdings indicating some confidence, the stock's weak long-term fundamentals raise concerns for potential investors.
As of 20-Jun, Restaurant Brands Asia Ltd is currently priced at 79.89, reflecting an increase of 0.25 (0.31%). The stock has been gaining over the last two days, with a total return of 5.55% during this period. Despite this short-term gain, the stock has experienced a decline of 7.33% over the past month and a significant drop of 24.99% over the last year. The company has high institutional holdings at 60.81%, which have increased by 6.62% in the previous quarter, indicating confidence from institutional investors. However, the stock's long-term fundamentals are weak, highlighted by a Return on Capital Employed (ROCE) of 0% and a high Debt to EBITDA ratio of 5.02 times, which raises concerns about its ability to service debt and sustain growth.In the broader market context, the stock's short-term return of 1.34% over the past week is slightly below the benchmark Sensex, which has returned 1.59% in the same period. This underperformance is consistent with the stock's trend of lagging behind the benchmark over the last three years, where it has generated negative returns compared to the BSE 500. The recent increase in investor participation, evidenced by a significant rise in delivery volume, suggests some renewed interest in the stock, but the overall weak long-term fundamentals and consistent underperformance against the benchmark indicate that caution may still be warranted for potential investors.
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