RIFC 50 Index

The RIFC 50 Index, initially published in 2002 by the Rosenberg International Franchise Center (RIFC), is the first stock index to track the financial market performance of the US franchising sector. It is published quarterly.

4th Quarter 2021 | 2021 Review

RIFC The RIFC 50 Index Recovers Strongly in 2021 Despite the Persistent Covid Pandemic. Avis Budget Group, BBQ Holdings, and Joint Chiropractic Lead Index with Triple Digit Increases

The RIFC 50 Index™ ended the year with a strong performance, adding 11.6 percent to its market value this last quarter of 2021. This performance confirms the solid recovery of the franchise sector despite the fast spread of the new omicron variant of the Covid virus.

In 2021, the US franchise sector, as reflected by the RIFC 50 Index, grew faster than most US economic sectors (as reflected by the S&P 500 Index and the other major market indices). Overall, the US and global economies staged strong recoveries in 2021, fueled by the widespread deployment of vaccines, stimulative fiscal policies, and expansionary monetary policies that have drastically expanded money supply and have kept the cost of capital very low with interest rates near zero.

Reflecting these improved economic and health conditions as well as stronger corporate earnings growth, the S&P 500 returned a solid 26.9 percent, while the RIFC 50 Index had an even stronger return of 30.0 percent in 2021. The year 2021 was still a challenging one for most businesses, including franchise businesses. The fast spread of the new omicron variant, widespread labor shortages, higher wages costs, supply chain disruptions, and accelerating inflation were tough challenges businesses had to face.

Despite these challenges, many franchise businesses were successful in generating significant shareholder values. Among the components of the RIFC 50 Index, Avis Budget Group (+350%), BBQ Holdings (+267%), and Joint Chiropractic (+157%) generated the most increases in their shareholder values in 2021.

The RIFC 50 Index is up 30.0 percent over the last 12 months, up 84.9 percent over the last five years, up 139.2 percent over the last 10 years, and up 442.2 percent since its inception in 2000.

RIFC 50 Index and S&P 500 Index: Total Returns
Period RIFC 50 Index S&P 500 Index
4th Quarter 2021 +11.6% +10.6%
1-Year +30.0% +26.9%
5-Year +84.9% +112.9%
10-Year +139.2% +279.0%
Since Inception (2000) +442.2% +241.8%

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

Second Quarter 2021

Franchise Sector Recovery Advances In 2Q 2021 As The Economy Reopens

The RIFC 50 Index™ gained another 3.3 percent in market value this quarter, signaling a strengthening of the franchise sector amidst a strong recovery of the US economy. The faster rate of vaccinations against Covid-19 and increased hiring and business re-openings boosted the US economy, with GDP growing a strong 6.6 percent this quarter. Most franchised businesses benefitted considerably from the improved economic and health environments. Thirty five of the 50 components of the RIFC 50 Index increased their market values this quarter, 22 of which grew 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 percent after reporting strong financial results and raising significantly 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 percent 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 Covid-19 pandemic had forced Hertz into bankruptcy protection in May 2020.

The RIFC 50 Index is up 39.3 percent over the last 12 months, up 60.2 percent over the last five years, up 108.7 percent over the last 10 years, and up 362.5 percent since its inception in 2000.

 

RIFC 50 Index and S&P 500 Index: Total Returns
Period RIFC 50 Index S&P 500 Index
2nd Quarter 2021 +3.3% +8.2%
1-Year +39.3% +38.6%
5-Year +60.2% +104.8%
10-Year +108.7% +225.4%
Since Inception (2000) +362.5% +208.2%

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

First Quarter 2021

RIFC 50 Index Continues Strong Rebound As Franchise Sector Prospects Markedly Improve

The RIFC 50 Index™ continued to recover strongly, gaining 7.3 percent in first quarter 2021. The fast ramp-up of the US Covid-19 vaccination program and the prospect of an approaching reopening of the economy, particularly in travel and hospitality industries, fueled a surge in the values of most components of the Index.

Thirty-eight of the Index components gained market value this quarter. Sixteen of them grew their market values by more than 20 percent, with Red Robin Gourmet Burgers (RRGB), Avis Budget Group (CAR), and Joint Chiropractic (JYNT) gaining 108.0 percent, 95.0 percent, and 85.5 percent, respectively. Index component Red Lion Hotels was acquired by Sonesta International Hotels in March 2021.

This strong performance by the RIFC 50 Index, outperforming the S&P 500 Index’ 5.8 percent quarterly return, signals a powerful upsurge of the franchising sector in the near future.

The RIFC 50 Index is up 57.8 percent over the last 12 months, up 40.8 percent over the last five years, up 97.1 percent over the last 10 years, and up 347.6 percent since its inception in 2000.

RIFC 50 Index and S&P 500 Index: Total Returns
Period RIFC 50 Index S&P 500 Index
1st Quarter 2021 +7.3% +5.8%
1-Year +57.8% +53.7%
5-Year +40.8% +82.4%
10-Year +97.1% +183.3%
Since Inception (2000) +347.6% +184.9%

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

Fourth Quarter 2020

Dunkin’ Brands Acquired For $11.3B While RIFC 50 Index Ends 2020 On Positive Note

The RIFC 50 Index™ continued to recover from the severe losses sustained earlier in the year due to the Covid-19 pandemic. In the 4th quarter 2020, it gained 12.8 percent in market value as effective vaccines started becoming available, fueling hopes for control of the pandemic in the near future.

Despite a very challenging year, 27 of the RIFC 50 Index’s 50 components ended the year with higher market values than at the beginning of the 2020. Seven even managed to grow their market values more than 50 percent. On the other hand, two of the Index’s components declared Chapter 11 bankruptcy protection during 2020 (Hertz and GNC). Index component Dunkin’ Brands, the parent company of iconic brands Dunkin’ and Baskin Robbins, was acquired by Inspire Brands for $11.3 billion this year. Over the last few years, Inspire Brands has acquired several RIFC 50 Index components, including Arby’s, Buffalo Wild Wings, and Sonic Drive-In.

The RIFC 50 Index is up 4.8 percent over the last 12 months, up 36.8 percent over the last five years, up 104.3 percent over the last 10 years, and up 317.2 percent since its inception in 2000.

RIFC 50 Index and S&P 500 Index: Total Returns
Period RIFC 50 Index S&P 500 Index
4th Quarter 2020 +12.8% +11.7%
1-Year +4.8% +16.6%
5-Year +36.8% +83.8%
10-Year +104.4% +198.7%
Since Inception (2000) +317.2% +169.4%

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