DURHAM, N.H. – The University of New Hampshire Rosenberg Franchise 50 Index, which tracks publicly traded companies in the United States engaged in business format franchising, rose 5.3 percent in the second quarter of 2014, boosted by strong performance from Ruby Tuesday and many other franchise companies.
Ruby Tuesday (RT) had the largest gains in the Rosenberg Franchise 50 Index this quarter, jumping 35.5 percent.
“Though still suffering slight declines in revenue, profit and same store sales, Ruby Tuesday’s results were much better than expected and provided investors and analysts with evidence that the company is making progress in its turnaround strategy by closing underperforming locations and attempting to revamp its brand,” said Hachemi Aliouche, co-director of the Rosenberg International Franchise Center at the UNH Peter T. Paul College of Business and Economics.
Panera Bread (PNRA) was one of the weakest performers this quarter, losing 12.2 percent of its market value. “A double digit drop in profit and a weaker than expected outlook for the rest of the year disappointed investors,” Aliouche said.
Thirty-four of the 50 components of the Rosenberg Franchise 50 Index made positive gains this quarter with 10 of them making double digit gains. The RCF50 Index continued to outperform the S&P 500 Index this year after underperforming it three of the four quarters in 2013. Year-to-date, the RCF50 Index is up 8.5 percent while the S&P 500 Index is up 6.1 percent. Since its inception in 2000, the RCF50 is up 209.2 percent while the S&P 500 is up 40.6 percent over the same period.
For more information on the center or the index: http://paulcollege.unh.edu/research/about-center.
The UNH Peter T. Paul College of Business and Economics offers a full complement of high-quality programs in business, economics, accounting, finance, information systems management, entrepreneurship, marketing, and hospitality management. Programs are offered at the undergraduate, graduate, and executive development levels. The college is accredited by the Association to Advance Collegiate Schools of Business, the premier accrediting agency for business schools worldwide. For more information, visit paulcollege.unh.edu.
The University of New Hampshire, founded in 1866, is a world-class public research university with the feel of a New England liberal arts college. A land, sea, and space-grant university, UNH is the state's flagship public institution, enrolling 12,300 undergraduate and 2,200 graduate students.
Image to be downloaded:
Caption: Hachemi Aliouche, co-director of the Rosenberg International Franchise Center at the UNH Peter T. Paul College of Business and Economics