Why is Restaurant Brand falling/rising?
As of 05-Sep, Restaurant Brands Asia Ltd's stock price is declining at 79.80, down 1.05%, with a total drop of 3.3% over the last four days. Despite high institutional holdings, concerns about its weak fundamentals and consistent underperformance against the benchmark indicate cautious investor sentiment.
As of 05-Sep, Restaurant Brands Asia Ltd is experiencing a decline in its stock price, currently at 79.80, which represents a decrease of 0.85 or 1.05%. The stock has been underperforming, having fallen consecutively for the last four days, resulting in a total decline of 3.3% during this period. Although the stock is trading higher than its 200-day moving average, it remains below its 5-day, 20-day, 50-day, and 100-day moving averages. The company has high institutional holdings at 60.5%, indicating that these investors may have a better understanding of the company's fundamentals. However, the stock's weak long-term fundamental strength, characterized by a 0% average Return on Capital Employed (ROCE) and a high Debt to EBITDA ratio of 5.02 times, raises concerns about its ability to service debt and achieve sustainable growth.In the broader market context, the stock's short-term performance has been lackluster, with a 1-week return of -0.19%, while the benchmark Sensex has gained 1.13% in the same period. Over the past year, Restaurant Brands has generated a return of -27.45%, significantly underperforming the benchmark, which has only declined by 1.81%. This consistent underperformance against the benchmark over the last three years, coupled with negative operating profits and flat results in June, suggests that investor sentiment is cautious, contributing to the stock's downward trajectory.
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