RIFC 50 Index™

RIFC 50 Index™ - 2nd Quarter 2019

RIFC 50 Index Extends Strong Rebound in 2Q 2019 as Acquisitions of Franchise Companies Continue

The RIFC 50 Index™ gained another 7.3 percent this quarter on the heels of its 8.4 percent gain last quarter as it continued its strong rebound from the severe financial markets correction of the 4th quarter 2018. 

This performance was almost twice as strong as that of the S&P 500 Index’s 3.8 percent gain this quarter.

Fifteen components of the index made double-digit gains this quarter. The best performer was Del Taco Restaurants (TACO), the owner, operator, and franchisor of fast-service Mexican-American restaurants – with a 32.8 percent jump in market value.

RIFC 50 Index companies continue to be acquisition targets as take-and-bake pizza franchise chain Papa Murphy’s (FRSH) was the latest component to be snapped up. Canada-based MTY Food Group completed the acquisition of Papa Murphy’s in May 2019 for approximately $190 million, adding it to its extensive portfolio of brands that include TCBY Frozen Yogurt, Cold Stone Creamery, Baja Fresh, Pinkberry, and Planet Smoothie.

The RIFC 50 Index is up 11.3 percent over the last 12 months, 28.5 percent over the last five years, and 297.2 percent since its inception in 2000.

RIFC 50 Index Q2 2019 Table Chart

 

Note: The RIFC 50 Index is updated quarterly. For more information,  contact Dr. E. Hachemi Aliouche (Hachemi.Aliouche@unh.edu), Director, Rosenberg International Franchise Center. 

RIFC 50 Index Q2 2019 Stock Graph

RIFC 50 Index™ - 1st Quarter 2019

2019 Q1 Report: UNH RIFC 50 IndexTM Component The Joint Chiropractic Almost Doubles in Value in Q1 2019

The RIFC 50 Index™ gained 8.4 percent this quarter amidst a broad recovery of the financial markets from the severe correction of the 4th quarter 2018. 

The S&P 500 Index jumped 13.1 percent this quarter.

Forty RIFC 50 Index components gained market value, with double-digit gains for 25 of them. Only nine index components lost market value.

The best performer this quarter was The Joint Chiropractic (JYNT), the owner, developer, operator, and franchisor of chiropractic clinics. The Joint Chiropractic almost doubled its market value this quarter (+90.1 percent), driven by strong improvements in financial and operational results in fourth quarter and full year 2018, including a positive net income for the first time (full disclosure: Peter Holt, president and CEO of The Joynt Chiropractic, is a member of the Advisory Board of the Rosenberg International Franchise Center).

Continuing the trend from several quarters, another component of the Index, Bojangle’s (BOJO) was acquired by two investment firms in an all cash transaction that closed in January 2019.

Q1 2019 RIFC 50 Index Table vs S&P 500 Year 2000 to 2019

  Note: The RIFC 50 Index is updated quarterly. For more information,  contact Dr. E. Hachemi Aliouche (Hachemi.Aliouche@unh.edu), Director, Rosenberg International Franchise Center. 


Q1 2019 RIFC 50 Index stock ticker tape image


RIFC 50 Index™ - 2018 Year-end Recap

2018 Recap:  The Franchising Sector Weathers a Challenging 2018

The franchising sector, like most sectors of the US economy, faced strong headwinds in the last quarter of 2018, causing the RIFC 50 Index to lose 9.5% of its market value in 2018.  

The macro environment in the United States and overseas deteriorated significantly in the last quarter 2018 as fears of a trade war between the United States and China increased, the Federal Reserve signaled a more restrictive monetary policy implying higher interest rates, an economic recession became a near-term possibility, and political gridlock took hold in Washington. Most financial markets dropped sharply as a result, with the S&P 500 Index dropping 14% and the Nasdaq Composite losing 17.5% of its value. The RIFC 50 Index dropped 8.9% in the 4th quarter 2018.

Though 2018 proved to be brutally challenging for most companies (35 out of the 50 RIFC components suffered market declines, many double-digit), several RIFC 50 Index components managed to avoid losses, and some in fact thrived. For example, restaurant operator and franchisor Wingstop (WINGS) added over 80% to its market value in 2018, while fitness centers operator and franchisor Planet Fitness’ (PLNT) market value jumped by over 50%.

RIFC 50 Index components continued to be snapped by other companies. In 2018, hotel operator and franchisor La Quinta was acquired by hotel franchisor Wyndham Hotels & Resorts, while Jamba Juice was bought by Focus Brands, and Sonic acquired by Inspire Brands, the owner of the Arby’s and Buffalo Wild Wings brands.

The RICF 50 Index, initially published in 2002 by UNH’s Rosenberg International Franchise Center (RIFC), is the first stock index to track the financial market performance of the U.S. franchising sector. It is a stock portfolio comprised of 50 U.S. public franchising companies representative of the U.S. business format franchising sector. Index tracking begins with the year 2000 and is updated quarterly. Since its inception in 2002, it is up 241.5% while the S&P 500 Index is up 79.8% over the same period.

2018 Yearend RIFC 50 Index table

Note: The RIFC 50 Index is updated quarterly. For more information,  contact Dr. E. Hachemi Aliouche (Hachemi.Aliouche@unh.edu), Director, Rosenberg International Franchise Center. 

2018 Year End Ticker Tape for RIFC 50 Index

RIFC 50 Index™ - 4th Quarter 2018

RIFC 50 Index Drops 8.9% Amidst Severe Market Correction As S&P Index Drops 14% 

The RIFC 50 Index™ dropped 8.9 percent amidst a severe market correction that saw the S&P 500 Index lose 14.0 percent of its value in the 4th quarter 2018. 

For more information on the RIFC 50 Index, contact Dr. E. Hachemi Aliouche (Hachemi.Aliouche@unh.edu). For more information about the Rosenberg International Franchise Center, visit www.unh.edu/rosenbergcenter

Note: The RIFC 50 Index is updated quarterly. For more information,  contact Dr. E. Hachemi Aliouche (Hachemi.Aliouche@unh.edu). 

 

RIFC 50 Index™ - 3rd Quarter 2018

RIFC 50 IndexTM Gains 5.0% in 3rd Quarter 2018

The RIFC 50 Index™ rose 5 % this quarter as 30 of its 50 components increased their market values. Consolidation activities in the franchising sector continued unabated as two more components of the index were recent targets of acquisitions:

  • Jamba (JMBA), the smoothie and healthy lifestyle franchise company was acquired in September 2018 by Focus Brands for $200 million
  • in September, Inspire Brands, the parent company of Arby’s and Buffalo Wild Wings, announced their acquisition of RIFC 50 Index component Sonic (SONC) in a deal valued at $2.3 billion.

Among the 50 components of the RIFC 50 Index, the best performer this quarter was chicken wings restaurant franchisor Wingstop (WING), which jumped 31% in market value.  The worst performer this quarter was Del Taco Restaurants (TACO), which lost 16.7% of its market value.

Meanwhile, the S&P 500 had an even stronger performance as it grew by 7.2 % this quarter, driven by very strong performances of the information technology, the health care, and the consumer discretionary sectors.  

The RIFC 50 Index™, first published in 2002 by the University of New Hampshire’s Rosenberg International Franchise Center (RIFC), is the first stock index to track the financial market performance of the U.S. franchising sector. It is a stock portfolio comprised of 50 public companies representative of the US franchising sector. 

The RIFC 50 Index is up 7.5% over the last 12 months, 41.1% over the last five years, and 274.8% since its inception in 2000.

Q3 2018 RIFC50 Index table

Note: The RIFC 50 Index is updated quarterly. For more information,  contact Dr. E. Hachemi Aliouche (Hachemi.Aliouche@unh.edu), Director, Rosenberg International Franchise Center. 

Q3 2018 RIFC 50 Index Bar Graph