Why is Restaurant Brand falling/rising?
As of 19-Aug, Restaurant Brands Asia Ltd is priced at 79.92, showing a short-term gain after recent declines, but it has a negative return of 3.13% over the past month and a significant 24.96% decline over the last year, raising concerns about its long-term sustainability. The stock has high institutional holdings but weak fundamentals, indicating a challenging outlook despite today's uptick.
As of 19-Aug, Restaurant Brands Asia Ltd is currently priced at 79.92, reflecting an increase of 1.46 or 1.86%. Today's price movement indicates a trend reversal, as the stock has gained after two consecutive days of decline. The stock outperformed its sector by 0.56% today, reaching an intraday high of Rs 80.18. Despite this short-term gain, the stock has shown a negative return of 3.13% over the past month and a significant decline of 24.96% over the last year. The company has high institutional holdings at 60.5%, which suggests that these investors may have a better understanding of the company's fundamentals, but the stock's weak long-term fundamental strength, indicated by an average Return on Capital Employed (ROCE) of 0% and a high Debt to EBITDA ratio of 5.02 times, raises concerns about its sustainability.In the broader market context, the stock's recent performance contrasts with the benchmark, as it has underperformed the Sensex, which has gained 1.76% over the past week. While the stock has seen a slight uptick today, its long-term trajectory remains concerning, with a 5.82% decline year-to-date compared to a 4.49% increase in the benchmark. The consistent underperformance against the BSE500 over the last three years, coupled with negative operating profits and flat results in June, further complicates the outlook for Restaurant Brands Asia Ltd, suggesting that while there may be short-term gains, the long-term prospects remain bleak.
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