Why is Restaurant Brand falling/rising?
As of 03-Jul, Restaurant Brands Asia Ltd is priced at 82.52, showing a slight increase but underperforming its sector and experiencing a significant drop in delivery volume. Despite high institutional holdings indicating some confidence, the company's weak long-term fundamentals and declining investor interest suggest a cautious outlook.
As of 03-Jul, Restaurant Brands Asia Ltd is currently priced at 82.52, reflecting a slight increase of 0.14 (0.17%). The stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a positive short-term trend. However, it has underperformed its sector by 0.32% today, and the delivery volume has significantly decreased by 45.64% compared to the 5-day average, suggesting a decline in investor participation. The stock has shown a mixed performance over various periods, with a 1-week return of +0.40% but a year-to-date decline of -2.76% and a substantial -23.09% drop over the past year. High institutional holdings at 60.81% may provide some support, as these investors have increased their stake by 6.62% over the previous quarter, indicating confidence in the company's fundamentals despite its weak long-term performance.In the broader market context, the stock's recent performance contrasts with the benchmark, as it has underperformed the Sensex, which has gained 3.10% over the past month. The stock's long-term fundamentals are concerning, with a return on capital employed (ROCE) of 0% and a high debt-to-EBITDA ratio of 5.02 times, indicating challenges in servicing debt and generating sustainable growth. Additionally, the company has consistently underperformed against the benchmark over the last three years, raising concerns about its viability as an investment. Overall, while there are some positive indicators, the combination of weak fundamentals and declining investor interest suggests a cautious outlook for Restaurant Brands Asia Ltd.
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