Why is Restaurant Brand falling/rising?
As of 18-Jul, Restaurant Brands Asia Ltd's stock price is Rs 82.50, down 2.08%, with a 1-year return of -26.34%. Despite high institutional holdings, the stock's long-term fundamentals are weak, contributing to its recent decline and underperformance against the market.
As of 18-Jul, Restaurant Brands Asia Ltd is experiencing a decline in its stock price, currently at Rs 82.50, which represents a decrease of 1.75 (-2.08%). The stock has been underperforming, having fallen consecutively for the last two days with a total decline of 2.37% during this period. In terms of returns, the stock has shown a modest increase of 0.60% over the past week but has significantly underperformed over the longer term, with a 1-year return of -26.34%. The company has high institutional holdings at 60.81%, which have increased by 6.62% over the previous quarter, indicating some confidence from institutional investors despite the stock'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 has outperformed the Sensex by 0.60% over the past week, while the benchmark has declined by 0.90%. However, the stock's year-to-date performance is concerning, showing a decline of 2.78% compared to the Sensex's gain of 4.63%. The company's weak long-term growth prospects, highlighted by poor operating profit growth and negative operating profits, contribute to its overall risk profile. Additionally, the stock's consistent underperformance against the benchmark over the last three years raises concerns for potential investors, further influencing its current price decline.
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