Why is Restaurant Brand falling/rising?
As of 28-Aug, Restaurant Brands Asia Ltd's stock price is Rs 79.78, up 2.68% today after a trend reversal. Despite this short-term gain, the stock has underperformed over the past year with a -28.86% return and weak long-term fundamentals, indicating ongoing investor risk concerns.
As of 28-Aug, Restaurant Brands Asia Ltd's stock price is currently at Rs 79.78, reflecting an increase of Rs 2.08 or 2.68%. The stock has shown a trend reversal, gaining after four consecutive days of decline, and has outperformed its sector by 4.23% today. It reached an intraday high of Rs 80.1, indicating positive momentum. However, despite this short-term gain, the stock has underperformed over the past year with a return of -28.86%, and its long-term fundamentals remain weak, highlighted by a Return on Capital Employed (ROCE) of 0% and a high Debt to EBITDA ratio of 5.02 times. The high institutional holdings at 60.5% suggest that these investors may have better insights into the company's fundamentals, which could influence the stock's recent upward movement.In the broader market context, the stock's short-term performance of -1.05% over the past week contrasts with the benchmark Sensex, which has declined by 2.34% in the same period. This indicates that while the stock is experiencing a slight recovery today, it has still faced challenges in the longer term, with a significant underperformance against the benchmark over the last three years. The stock's liquidity appears adequate for trading, but the overall negative operating profits and weak long-term growth prospects contribute to a perception of risk among investors, which may temper enthusiasm despite today's price increase.
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