Why is Restaurant Brand falling/rising?

Sep 11 2025 11:14 PM IST
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As of 11-Sep, Restaurant Brands Asia Ltd is seeing a price increase to 80.95, but it has significantly underperformed over the long term with a year-to-date decline of 4.61% and a 22.90% drop over the past year, raising concerns about its fundamental strength and ability to sustain growth. Despite recent gains, the stock lags behind the broader market and presents a risky investment scenario.
As of 11-Sep, Restaurant Brands Asia Ltd is experiencing a price increase, with the current price at 80.95, reflecting a change of 0.91 or 1.14% upward. The stock has outperformed its sector by 1.48% today and has shown consecutive gains over the last two days, rising 1.3% during this period. However, despite this recent uptick, the stock has underperformed significantly over the longer term, with a year-to-date decline of 4.61% and a staggering 22.90% drop over the past year. The company faces challenges such as 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, which raises concerns about its ability to service debt and sustain growth.

In the broader market context, the stock's short-term performance over the past week shows a modest gain of 0.37%, while the benchmark Sensex has increased by 1.03% during the same period. This indicates that while the stock is currently rising, it is still lagging behind the overall market performance. The high institutional holdings at 60.5% suggest that knowledgeable investors are backing the stock, yet the consistent underperformance against the benchmark over the last three years, coupled with negative operating profits, presents a risky investment scenario. Overall, the recent price increase may be a temporary reaction amidst ongoing fundamental weaknesses and market pressures.
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