2021 Franchise Sector Recovery Advances in 2Q as Economy Reopens
DURHAM, N.H.—The University of New Hampshire’s franchising sector-focused RIFC 50 Index™ gained another 3.3% in market value in the second quarter of 2021, signaling a strengthening of the franchise sector amidst a strong recovery of the U.S. economy. The faster rate of vaccinations against COVID-19 and increased hiring and business re-openings boosted the economy, with GDP growing a strong 6.6%. Developed and published by UNH’s Rosenberg International Franchise Center (RIFC), the RIFC 50 Index is the first stock index to track the financial market performance of the U.S. franchising sector.
“Most franchised businesses benefitted considerably from the improved economic and health environments,” said E. Hachemi Aliouche, director of the RIFC and developer of the RIFC 50 Index. “Thirty-five of the 50 components of the index increased their market values this quarter, 22 of which grew by double digits.”
Index component BBQ Holdings (BBQ), the developer, operator and franchisor of casual and fast dining restaurants with brand names Famous Dave's, Clark Crew BBQ, Granite City Food & Brewery and Real Urban Barbecue, jumped 161.8% after reporting strong financial results and significantly raising their revenues and profits outlook for 2021. On the other hand, Regis Corporation (RGS), the owner, operator and franchisor of hairstyling and hair care salons, dropped 25.5% of its market value this quarter after reporting declining sales and higher losses than expected. Hertz, the provider of airport and off-airport vehicles rental and leasing services, announced that it will emerge from bankruptcy in July 2021. The almost complete halt to air travel due to the pandemic forced Hertz into bankruptcy protection in May 2020.
The RIFC 50 Index is up 39.3% over the last 12 months, up 60.2% over the last five years, up 108.7% over the last 10 years and up 362.5% since its inception in 2000. To learn more about RIFC and the franchise indices, visit paulcollege.unh.edu/Rosenberg and follow @RIFC_UNH on Twitter.
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