Why is Restaurant Brand falling/rising?
As of 03-Sep, Restaurant Brands Asia Ltd is priced at 82.00, down 0.39%. The stock has underperformed with a year-to-date return of -3.37% and a significant decline of 23.93% over the past year, reflecting weak fundamentals and declining investor confidence.
As of 03-Sep, Restaurant Brands Asia Ltd is currently priced at 82.00, reflecting a decrease of 0.32, or 0.39%. The stock has been underperforming, having fallen consecutively for the last two days with a total return decline of 0.63%. In the past week, the stock has shown a modest gain of 5.53%, but it has underperformed in the longer term, with a year-to-date return of -3.37% and a significant decline of 23.93% over the past year. The company is experiencing weak long-term fundamental strength, evidenced by an average Return on Capital Employed (ROCE) of 0% and a high Debt to EBITDA ratio of 5.02 times, which raises concerns about its ability to service debt. Additionally, the stock's performance has been hindered by a low Debtors Turnover Ratio and negative operating profits, contributing to its recent price movement.In the broader market context, the stock's short-term performance of +5.53% over the past week contrasts with the Sensex, which has seen a slight decline of 0.27%. However, the stock has consistently underperformed against the benchmark over the last three years, generating negative returns while the Sensex has increased. The falling investor participation, with a delivery volume drop of 7.98% against the 5-day average, further indicates a lack of confidence among investors. Despite high institutional holdings at 60.5%, which typically suggests a more stable investment, the overall negative sentiment surrounding the company's fundamentals and its consistent underperformance against the market are contributing to the stock's current decline.
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