Why is Restaurant Brand falling/rising?
As of 18-Sep, Restaurant Brands Asia Ltd's stock price is rising to 85.85, reflecting a 7.19% increase. Despite this short-term gain and positive recent performance, the stock has underperformed over the past year and has concerning long-term fundamentals.
As of 18-Sep, Restaurant Brands Asia Ltd's stock price is rising, currently at 85.85, reflecting an increase of 5.76 or 7.19%. The stock has shown a positive trend today, outperforming its sector by 8.17% and reversing a three-day decline. It reached an intraday high of Rs 87.6, indicating strong buying interest. Additionally, the stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, which suggests a bullish sentiment among investors. However, despite this short-term gain, the stock has underperformed over the past year with a return of -20.58%, and it has shown weak long-term fundamental strength, including a poor Return on Capital Employed (ROCE) of 0% and a high Debt to EBITDA ratio of 5.02 times.In the broader market context, the stock's short-term performance over the past week has been positive, with a return of +6.05%, significantly outperforming the Sensex, which only gained +1.80% in the same period. This indicates that while the stock is experiencing a rebound, it has consistently underperformed against the benchmark over the last three years. The high institutional holdings at 60.5% may provide some support, as these investors typically have better resources to analyze the company's fundamentals. However, the stock's long-term outlook remains concerning due to its negative operating profits and inability to service debt effectively, which could pose risks for sustained growth despite the recent price increase.
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