Why is Restaurant Brand falling/rising?
As of 10-Jul, Restaurant Brands Asia Ltd's stock price is Rs 83.90, up 2.94% today, but it has declined 26.34% over the past year. Despite strong institutional support, the company's weak long-term fundamentals raise concerns about its growth and debt servicing ability.
As of 10-Jul, Restaurant Brands Asia Ltd is experiencing a price increase, with its current price at Rs 83.90, reflecting a rise of 2.4 (2.94%). The stock has outperformed its sector today by 3.06% and reached an intraday high of Rs 85.37, marking a 4.75% increase. Despite this positive movement, the stock has shown a year-to-date decline of 1.13% and a significant drop of 26.34% over the past 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, characterized by a 0% average Return on Capital Employed (ROCE) 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 performance over the past week shows a gain of 1.67%, while the benchmark Sensex has remained relatively flat with a change of -0.06%. This indicates that Restaurant Brands Asia Ltd is performing better than the overall market in the short term. However, the stock has consistently underperformed against the benchmark over the last three years, with a return of -26.34% compared to the Sensex's 4.09% over the past year. The decline in investor participation, with a 75.75% drop in delivery volume, suggests a potential lack of confidence among retail investors, which could impact future price movements.
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