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Check Before You Invest : Restaurant Brands Asia Ltd

BSE: 543248 NSE: RBA ISIN: INE07T201019
  |   Sector:  Travel & Hospitality   |   Industry:  Restaurants

Snapshot

Q.1 Which industry/sub-sector does Restaurant Brands Asia Ltd belong to?
Restaurant Brands Asia Ltd belongs to the Travel & Hospitality sector, operating specifically within the Restaurants segment.
Q.2 Is Restaurant Brands Asia Ltd a good quality company?
Restaurant Brands Asia Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Restaurant Brands Asia Ltd undervalued or overvalued?
Restaurant Brands Asia Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Restaurant Brands Asia Ltd a good buy now?
Restaurant Brands Asia Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Restaurant Brands Asia Ltd?
Restaurant Brands Asia Ltd revenue growth is 11.8% for FY-2025 , which is below its 5 year CAGR of 18.5% , indicating slower growth.
Q.2 Gross Profit margin of Restaurant Brands Asia Ltd?
Restaurant Brands Asia Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.5% for FY-2025 , which is above its 5 year median of 7.5% , indicating increasing margins.
Q.3 Operating Profit Margin of Restaurant Brands Asia Ltd?
Restaurant Brands Asia Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.63% for FY-2025 , which is above its 5 year median of 11.51% indicating increasing margins.
Q.4 Net Profit Margin of Restaurant Brands Asia Ltd?
Restaurant Brands Asia Ltd Net Profit Margin is -4.45% for FY-2025 , is above with its 5 year median of -4.99%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 8.5 7.5
Operating Profit Margin 14.63 11.51
Net Profit Margin -4.45 -4.99
Q.5 Return on Asset of Restaurant Brands Asia Ltd?
Restaurant Brands Asia Ltd Return on Asset is -2.28%, which is above its 5 year historical median of -2.4%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Restaurant Brands Asia Ltd?
Restaurant Brands Asia Ltd Return on equity is -4.32% for FY-2025 , which is in line with its historical median of -4.32%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Restaurant Brands Asia Ltd?
Restaurant Brands Asia Ltd Return on capital employed is 2.53% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Restaurant Brands Asia Ltd?
Restaurant Brands Asia Ltd Cash conversion cycle is -31 days, above its historical median of -36 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.51 0.48
ROE -4.32 -4.32
ROCE 2.53 0.92
Cash Conversion Cycle -31 days -36 days
Q.9 Debt to Equity ratio of Restaurant Brands Asia Ltd?
Restaurant Brands Asia Ltd Debt-to-Equity ratio is 0.06 , which is above with the industry average of 0.05 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Restaurant Brands Asia Ltd?
Restaurant Brands Asia Ltd Debt to cash flow from operations is 0.37 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Restaurant Brands Asia Ltd?
Promoters hold 11.26% of the Restaurant Brands Asia Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Restaurant Brands Asia Ltd vs industry peers?
Restaurant Brands Asia Ltd revenue CAGR is 18.53% , compared to the industry median CAGR of 9.99% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,967.8 893
Gross Profit 167.3 72.7
Operating Profit 284 58
Net Profit -88 0.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.51 0.85
ROE -4.32 2.11
ROCE 2.53 8.22
Cash Conversion Cycle (days) -30.7 -26

Valuation & price assessment

Q.1 Stock return of Restaurant Brands Asia Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -13.42% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - -13.4% -12.3% -18.8%
Q.3 Valuation ratios of Restaurant Brands Asia Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - - 71.93
Price to Book 1.67 2.85 3.17
Price to Sales 1.7 3.58 3.03
EV to EBITDA 9.94 25.28 19.64

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