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.
First Quarter 2022
Dunkin’ Record Inflation, War in Ukraine Batter RIFC 50 Index in First Quarter 2022
The RIFC 50 Index dropped 8.3 percent in the first quarter 2022 after a very strong 4th quarter 2021. Inflation surging to 40-year highs, impending interest rate hikes by the Federal Reserve, and Russia’s invasion of Ukraine rattled global financial markets, with all major US and international indices taking heavy losses.
Inflationary fears were exacerbated by this first major conflict in Europe since World War II as it threatened the supply of essential commodities such as oil, wheat, corn, and natural gas. Most domestic and international business sectors and companies were negatively impacted – with many companies taking severe blows to their operations and market values. Two of the heavyweight components of the RIFC 50 Index (McDonald’s and Yum!Brands) were particularly impacted by the conflict as they suspended their operations in Russia and Ukraine – contributing to their large losses in value this quarter, with McDonalds losing almost $17 billion in market value while Yum!Brands dropping almost $7 billion. Thirty-six components of the Index lost value this quarter while only 14 made gains. Despite this sizable drop this quarter, the RIFC 50 Index is still up 11.0 percent over the last 12 months. It is up 60.0 percent over the last five years, up 102.9 percent over the last 10 years, and up 397.0 percent since its inception in 2000.
| Period | RIFC 50 Index | S&P 500 Index |
|---|---|---|
| 1st Quarter 2022 | -8.3% | -4.8% |
| 1-Year | +11% | +14% |
| 5-Year | +60% | +91.8% |
| 10-Year | +102.9% | +221.7% |
| Since Inception (2000) | +397% | +224.9% |
Note: The RIFC 50 Index is updated quarterly. For more information, contact Dr. E. Hachemi Aliouche, Director, Rosenberg International Franchise Center.
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.
| 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.
Third Quarter 2021
Franchise Sector Continues Its Recovery in 3Q 2021
The RIFC 50 Index™ gained another 5.0 percent in market value this quarter, reflecting a continuation of the recovery of the franchise sector as the overall US economic and health environments continue to improve.
The RIFC 50 Index is up 31.4 percent over the last 12 months, up 71.2 percent over the last five years, up 142.1 percent over the last 10 years, and up 385.7 percent since its inception in 2000.
| Period | RIFC 50 Index | S&P 500 Index |
|---|---|---|
| 3rd Quarter 2021 | +5% | +0.2% |
| 1-Year | +31.4% | +28.1% |
| 5-Year | +71.2% | +98.7% |
| 10-Year | +142.1% | +280.7% |
| Since Inception (2000) | +385.7% | +208.9% |
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.
| 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.
