Why is Restaurant Brand falling/rising?
As of 14-Jul, Restaurant Brands Asia Ltd is priced at 82.15, showing a slight increase but underperforming the sector today. Despite recent short-term gains, the stock has a weak long-term outlook with negative operating profits and significant underperformance against the benchmark over the past year.
As of 14-Jul, Restaurant Brands Asia Ltd is currently priced at 82.15, reflecting a slight increase of 0.14 (0.17%). The stock has shown a mixed performance, with a 1-week return of +1.42% and a 1-month return of +4.21%. However, it has underperformed the sector by 0.3% today, and there has been a notable decline in investor participation, with delivery volume dropping by 32.65% against the 5-day average. The stock has high institutional holdings at 60.81%, which have increased by 6.62% over the previous quarter, indicating confidence from institutional investors despite the company's weak long-term fundamentals, including a 0% average Return on Capital Employed (ROCE) and a high Debt to EBITDA ratio of 5.02 times.In the broader market context, the stock's recent short-term performance contrasts with the benchmark, as it has outperformed the Sensex by 1.42% over the past week while the Sensex has declined by 1.42%. Despite this short-term gain, the stock has consistently underperformed against the benchmark over the last three years, with a significant decline of -28.76% in the past year compared to the Sensex's positive return of 2.15%. This persistent underperformance, coupled with negative operating profits and flat results, suggests that while there may be some short-term upward movement, the overall outlook remains weak, contributing to the stock's volatility and risk.
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