Why is Restaurant Brand falling/rising?

Jul 02 2025 10:40 PM IST
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As of 02-Jul, Restaurant Brands Asia Ltd's stock price is at 82.38, down 0.93%. Despite a slight recent increase, the stock has significantly underperformed long-term, prompting a strong sell recommendation due to weak fundamentals and high institutional caution.
As of 02-Jul, Restaurant Brands Asia Ltd's stock price is currently at 82.38, reflecting a decrease of 0.77, or 0.93%. The stock has experienced a trend reversal, falling after two consecutive days of gains. In terms of performance, it has shown a slight increase of 0.19% over the past week and 0.66% over the past month, but it has significantly underperformed over the longer term, with a year-to-date decline of 2.92% and a one-year drop of 19.30%. The stock's moving averages indicate that it is currently higher than the 5-day, 20-day, 50-day, and 100-day averages but lower than the 200-day average. Despite a rise in investor participation, as evidenced by a 79.05% increase in delivery volume, the stock is viewed as a strong sell due to weak long-term fundamentals, including a poor Return on Capital Employed (ROCE) of 0% and a high Debt to EBITDA ratio of 5.02 times.

In the broader market context, the stock's short-term performance of +0.19% over the past week is notably lower than the benchmark Sensex, which has increased by 0.79% in the same period. This underperformance is consistent with the stock's trend over the past three years, where it has consistently lagged behind the benchmark, generating a return of -25.52% compared to the Sensex's +57.65%. The high institutional holdings at 60.81% suggest that these investors, who typically have better analytical resources, are still cautious about the stock's potential, especially given its negative operating profits and flat results in recent quarters.
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