Why is Restaurant Brand falling/rising?
As of 29-Aug, Restaurant Brands Asia Ltd is priced at 79.95, showing a recent short-term gain but significant long-term underperformance with a year-to-date decline of 5.79% and a 27.48% drop over the past year. Despite high institutional holdings, the company's weak fundamentals and negative operating profits suggest a challenging outlook.
As of 29-Aug, Restaurant Brands Asia Ltd is currently priced at 79.95, reflecting a slight increase of 0.17 or 0.21%. The stock has been gaining momentum recently, with a consecutive gain over the last two days, resulting in a total return of 2.9% during this period. Despite this short-term positive movement, the stock has shown significant underperformance over longer periods, with a year-to-date decline of 5.79% and a staggering 27.48% drop over the past year. The company has high institutional holdings at 60.5%, which may provide some stability; however, it also faces challenges such as a weak long-term fundamental strength indicated by a 0% average Return on Capital Employed (ROCE) and a high Debt to EBITDA ratio of 5.02 times, suggesting difficulties in servicing its debt.In the broader market context, the stock's recent performance contrasts with the benchmark, as it has outperformed the Sensex by 0.65% over the past week, while the Sensex itself has declined by 1.84%. However, over the longer term, Restaurant Brands Asia Ltd has consistently underperformed against the benchmark, with a 36.97% decline over the past three years compared to a 37.67% gain in the broader market. This persistent underperformance, coupled with negative operating profits and flat results in recent quarters, indicates that while there may be short-term gains, the overall outlook remains challenging for the stock in the context of its historical performance and market conditions.
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