Why is Restaurant Brand falling/rising?
As of 22-Jul, Restaurant Brands Asia Ltd is currently priced at Rs 84.86, reflecting a short-term gain but a long-term underperformance with a 1-year return of -19.94%. Despite recent positive momentum and high institutional holdings, the company faces significant long-term challenges, including weak fundamentals.
As of 22-Jul, Restaurant Brands Asia Ltd is experiencing a price increase, currently at Rs 84.86, reflecting a rise of 1.55 (1.86%). The stock has shown positive momentum, outperforming its sector by 3.39% today and achieving a consecutive gain over the last two days with a total return of 2.86% in that period. It reached an intraday high of Rs 87.54, which is a 5.08% increase. However, despite this short-term performance, the stock has underperformed over the longer term, with a 1-year return of -19.94% and a 3-year return of -28.60%. The company has high institutional holdings at 60.81%, which have increased by 6.62% over the previous quarter, indicating confidence from larger investors. Nonetheless, the company faces challenges with weak long-term fundamentals, including a low Return on Capital Employed (ROCE) of 0% and a high Debt to EBITDA ratio of 5.02 times, which could hinder future growth.In the broader market context, the stock's short-term performance is notably better than the benchmark, as it has gained 1.30% over the past week while the Sensex has declined by 0.47%. Over the past month, Restaurant Brands has increased by 6.22%, contrasting with a slight drop of 0.27% in the benchmark. Despite these short-term gains, the stock's long-term trajectory remains concerning, as it has consistently underperformed against the BSE500 over the last three years. This combination of recent positive price movement and ongoing long-term challenges creates a complex picture for investors considering the stock's future potential.
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