RIFC 50 Index™

RIFC 50 Index™ - 2nd Quarter 2020

RIFC 50 Index Snaps Back 17.1% in Q2 Amidst Ongoing COVID-19 Pandemic

The RIFC 50 Index™ regained 17.1 percent of its market value this quarter following its worst quarterly drop since its inception. As the US and global economies started to reopen, many of the severely battered franchise business sectors, including restaurants, lodging, and travel-related businesses, started experiencing an increase in demand – though still in a limited way. 

Forty-six of the 50 components of the RIFC 50 Index made gains this quarter, with seven components making triple-digit gains. However, due to the severity of the impact of the Covid-19 pandemic on its business, car rental operator and franchisor Hertz Global Holdings filed for Chapter 11 bankruptcy protection in May 2020, though it announced that it would remain open and able to pay new vendors. By the end of the quarter, Hertz had lost over 77 percent of its market value.

Overall, financial markets sentiment improved significantly this quarter as many investors, believing the worst of the pandemic was over, snapped beat-up stocks and drove up prices of most market indices. The S&P 500 regained 20 percent of its market value. Technology and healthcare companies have powered the relatively strong performance of the S&P 500 Index.

The RIFC 50 Index is down 16.4 percent over the last 12 months, up 3.9 percent over the last five years, up 95.7 percent over the last 10 years, and up 232.0 percent since its inception in 2000.

Q2 2020 RIFC 50 Index Table vs S&P 500 Year 2000 to 2020

  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™ - 1st Quarter 2020

RIFC 50 Index Tumbles 28.7%  As Coronavirus Pandemic Batters Franchise Sector in Q1

The RIFC 50 Index™ lost 28.7% of its market value in the first quarter 2020 as the coronavirus (COVID-19) pandemic spread through the United States and the rest of the world, and the country shut down to slow down its deadly advance.

The shutdown disproportionately hurt businesses that are heavily franchised (lodging, restaurant, personal services, gyms, etc.), as people sheltered at home and maintained social distancing, and businesses were ordered to closed down completely or partially across the country.

The pandemic created havoc in the franchise sector as reflected by the heavy losses sustained by the components of the RIFC 50 Index. Forty-nine of the 50 components of the index lost market value this quarter, with 22 of them losing over 50 percent of their value. Only Domino’s Pizza (DPZ) managed to make a gain this quarter (+5.3 percent).

Though most sectors of the US economy were hurt by the coronavirus pandemic, some business sectors were not as badly battered as the franchise sector, leading to a large drop in the S&P 500 Index (-19.8 percent), but not as severe as the drop in the RIFC 50 Index.

The RIFC 50 Index is down 23.4 percent over the last 12 months, down 13.2 percent over the last five years, up 59.5 percent over the last 10 years, and up 183.6 percent since its inception in 2000.

Q1 2020 RIFC 50 Index Table vs S&P 500 Year 2000 to 2020

  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 2020 Ticker Tape Stock Graph showing RIFC 50 Index stock performance 2000-2020 year Q1


RIFC 50 Index™ - 2019 Year-end Recap

2019 Recap:  The Franchising Sector Rebounds in 2019

The RIFC 50 Index rebounded nicely in 2019, moving up 16.5 percent. After a bruising 4th quarter 2018 when it dropped 8.9 percent along with the overall financial markets indices, the RIFC 50 Index recovered strongly in the first two quarters of 2019 (+8.4 percent in Q1 and +7.3 percent in Q2) then slowed down markedly in the last two quarters (+0.0 percent in 3Q and +0.2 percent in Q4).  

 

Driven by very strong performances of the Information Technology sector and the Financial sector, the S&P 500 Index returned an even better performance in 2019, adding 28.5 percent. The US and global macro environments improved markedly this year, with the US Federal Reserve cutting interest rates three times, the US-China trade dispute showing signs of improvements, and fears of recession fading away.

The best performing RIFC 50 Index component this year was the Joint Chiropractic (JYNT), up 96 percent, while the worst performer was Party City (PRTY), down 77.2 percent. Franchise companies continued to be targets of acquisitions as RIFC 50 Index components Bojangles, a southern chicken restaurant franchisor, and Papa Murphy’s, a take-and-bake pizza company, were both acquired in 2019. 

The RIFC 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 298.0 percent while the S&P 500 Index is up 131.7 percent over the same period.

2019 RIFC 50 Index Q4 Year End Report 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. 

2019 Year End Ticker Tape for RIFC 50 Index

RIFC 50 Index™ - 3rd Quarter 2019

RIFC 50 IndexTM Flat in 3rd Quarter 2019

The RIFC 50 Index™ was flat in the 3rd quarter 2019 after two strong quarters in 2019. The RIFC 50 Index is up 6.0 percent over the last 12 months, 29.8 percent over the last five years, and 297.2 percent since its inception in 2000.

RIFC 50 Index Q3 Table Report 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. 

RIFC 50 Index Q3 2019 Stock Ticker Tape Image