Why is Restaurant Brand falling/rising?
As of 17-Jul, Restaurant Brands Asia Ltd is priced at 84.25, down 0.3%, and while it shows short-term resilience, its long-term fundamentals are weak, with a return on capital employed of 0% and a high debt-to-EBITDA ratio, leading to significant underperformance over the past year.
As of 17-Jul, Restaurant Brands Asia Ltd is currently priced at 84.25, reflecting a decrease of 0.25, or 0.3%. The stock has recently experienced a trend reversal, falling after three consecutive days of gains. Despite this decline, it is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a generally positive short-term trend. The stock has shown a 1-week return of 0.42%, outperforming the Sensex, which has declined by 1.12% over the same period. However, the company has faced significant challenges, including a weak long-term fundamental strength with a return on capital employed of 0% and a high debt-to-EBITDA ratio of 5.02 times. Additionally, the stock has underperformed the benchmark over the past year, generating a return of -24.10%.In the broader market context, while Restaurant Brands has shown some resilience in the short term, its long-term performance remains concerning compared to the benchmark, which has gained 5.27% year-to-date. The stock's recent decline may be influenced by its weak fundamentals and negative operating profits, which raise concerns among investors. Despite high institutional holdings at 60.81%, which suggest confidence from more knowledgeable investors, the stock's consistent underperformance over the last three years indicates a lack of growth potential. Overall, the combination of short-term gains and long-term weaknesses contributes to the stock's current price movement.
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