Why is Restaurant Brand falling/rising?

Jun 27 2025 10:34 PM IST
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As of 27-Jun, Restaurant Brands Asia Ltd's stock price is Rs 81.19, down 1.22%, and has underperformed its sector. The stock faces long-term challenges with a year-to-date decline of 4.32% and a significant drop of 20.64% over the past year, driven by weak fundamentals and declining investor confidence.
As of 27-Jun, Restaurant Brands Asia Ltd is experiencing a decline in its stock price, currently at Rs 81.19, reflecting a decrease of 1.0 (-1.22%). The stock has underperformed its sector by 1.79% today and has been on a consecutive downward trend for the last two days, with a total drop of 1.25% during this period. The stock's performance over the past week shows a modest gain of 1.63%, but it has struggled over the longer term, with a year-to-date decline of 4.32% and a significant drop of 20.64% over the past year. The company has high institutional holdings at 60.81%, which have increased by 6.62% over the previous quarter; however, the overall weak long-term fundamentals, including a Return on Capital Employed (ROCE) of 0% and a high Debt to EBITDA ratio of 5.02 times, contribute to the stock's negative outlook.

In the broader market context, the stock's recent performance contrasts with the Sensex, which has risen by 2.00% over the past week and 7.58% year-to-date. This consistent underperformance against the benchmark reflects the company's challenges, including negative operating profits and a low ability to service debt. The stock's liquidity appears adequate for trading, but the significant drop in delivery volume by 46.78% against the five-day average indicates falling investor participation, further exacerbating the stock's decline. Overall, the combination of weak fundamentals, poor long-term growth prospects, and a lack of investor confidence are driving the stock's downward movement.
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