Restaurant Brands New Zealand (NZSE:RBD) stock falls 11% in past week as one-year earnings and shareholder returns continue downward trend

Taking the occasional loss comes part and parcel with investing on the stock market. And there's no doubt that Restaurant Brands New Zealand Limited (NZSE:RBD) stock has had a really bad year. The share price has slid 55% in that time. Even if you look out three years, the returns are still disappointing, with the share price down37% in that time. Furthermore, it's down 35% in about a quarter. That's not much fun for holders.

Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.

Check out the opportunities and risks within the NZ Hospitality industry.

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Unfortunately Restaurant Brands New Zealand reported an EPS drop of 39% for the last year. This reduction in EPS is not as bad as the 55% share price fall. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

Dive deeper into Restaurant Brands New Zealand's key metrics by checking this interactive graph of Restaurant Brands New Zealand's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 14% in the twelve months, Restaurant Brands New Zealand shareholders did even worse, losing 54% (even including dividends). However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 1.3% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Restaurant Brands New Zealand better, we need to consider many other factors. For instance, we've identified 4 warning signs for Restaurant Brands New Zealand (2 are concerning) that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on NZ exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.