Restaurant Brands Asia stock rises 3% on plans to mull over QIP fund raise on December 20

Restaurant Brands Asia stock has slipped nearly 24 percent in the last three months.

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Restaurant Brands Asia shares rose 3 percent on December 18 as investors lapped up the stock in the run-up to the company's board meet, scheduled for Friday, to consider a fund raise through a Qualified Institutional Placement (QIP).

At 09.48 am, shares of Restaurant Brands Asia were trading at Rs 83.10 on the NSE.

The board will also consider convening an extraordinary general meeting or initiating a postal ballot process to obtain shareholder approval for the fundraising proposal.

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Restaurant Brands Asia, which owns and operates a chain of restaurants with the Burger King brand, has been struggling with weak discretionary demand in the recent times.

Persisting concerns over slowdown in urban consumption has not just weighed on Restaurant Brands Asia's stock performance, but also its quarterly earnings. The stock has slipped nearly 24 percent in the last three months.

Along those lines, the company's net loss for the July-September widened on year, further dragging investor sentiment for the stock. The company's net loss swelled up to Rs 60.17 crore for the September quarter, expanding from a loss of Rs 46.03 crore a year earlier.

Revenue grew by 1 percent on year, the slowest increase in over three years, coming at Rs 632 crore in Q2. Same-store sales growth, a key indicator of customer retention, fell 3 percent  as compared to a 3.5 percent increase last year, due to subdued demand.

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