RIFC Franchise Index

Strong travel demand, record expansion, strength in premium segments, positive financial performance, and solid shareholder returns (including robust dividends and share repurchases) resulted in strong gains in market value for Marriott and other Lodging franchisors in 4Q 2025 and for the year 2025 overall. The Lodging segment of the RIFC Franchise Index is up 12.2 percent in 4Q 2025. The Food sector was up 1.2 percent, while the Services sector was down 4.9 percent in 4Q 2025. 

The table below shows the market performance of the RIFC Franchise Index and the S&P 500 Index over various time periods*. Over 1-year, 5-years, and 10-years, the RIFC Franchise Index returned +5.0%, +45.6%, and 99.2% respectively. Since inception in 2000, it has gained 507.4%. Over these same time periods, the S&P 500 Index returned, respectively, +16.4%, +82.3%, +234.9%, and +390.9%. It is to be noted that the exceptional performance of the S&P 500 Index in recent years has been mostly the result of the remarkable outperformance of a handful of mega cap technology companies (Apple, Amazon, Microsoft, Nvidia, etc.) that are not part of the franchise business sector. 

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

Brinker International (EAT) had the worst performance this quarter, losing almost 30 percent of its market value. 

The table below shows the market performance of the RIFC Franchise Index and the S&P 500 Index over various time periods*. Year-to-date, it is up 1.6%. Over 1-year, 5-years, and 10-years, the RIFC Franchise Index returned +1.1%, +58.9%, and 101.5% respectively. Since inception in 2000, it has gained 487.4%. Over these same time periods, the S&P 500 Index returned, +13.7% YTD, and then +16.1%, +98.9%, +248.4%, and +379.6%, respectively. 

The Information Technology sector of the S&P 500 Index had an outstanding performance this quarter, jumping 13.2 percent. It is to be noted that the exceptional performance of the S&P 500 Index in recent years has been mostly the result of the remarkable outperformance of a handful of mega cap technology companies (Apple, Amazon, Microsoft, Nvidia, etc.) that are not part of the franchise business sector.

RIFC Index and S&P 500 Index: Total Returns

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

Car rental franchisors Avis Budget Group (CAR) and Hertz Global (HTZ) had very strong performances, up +123 percent and +74.8 percent, respectively. Both companies markedly improved their per-unit fleet depreciations and implemented cost control measures that significantly improved their profitability in 2Q 2025. Strong travel trends also helped boost car rental demand and revenues. 

Krispy Kreme Donuts (DNUT) had the Index’ weakest performance in 2Q 2025, shedding 40.3 percent of its market value. It is facing a slew of challenges. With declining sales, it missed EPS expectations and lowered profit expectations for FY 2025. Its partnership with McDonalds was halted mid-Q2. It paused its dividend to conserve cash. And a federal investigation into accounting practices has unnerved investors. 

The table below shows the market performance of the RIFC 50 Index and the S&P 500 Index over various time periods. For this second quarter of 2025, the S&P 500 had a very strong recovery after the tariff-driven slump early in the quarter, driven by strong momentum from the Big Tech companies. 

Year to date, the RIFC 50 Index is up 3.3 percent while over 1-year, 5-years, and 10-years, the RIFC 50 Index returned +11.9%, +80.0%, and 87.0% respectively. Since its inception in 2000, it has gained 497.5%. Over these same time periods, the S&P 500 Index returned, respectively, +5.5%, +13.6, 100.1%, +200.8%, and +345.0%. It is to be noted that the exceptional performance of the S&P 500 Index in recent years has been mostly the result of the remarkable outperformance of a handful of mega cap technology companies (Apple, Amazon, Microsoft, Nvidia, etc.) that are not part of the franchise business sector.

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

The franchised lodging sector underperformed this quarter, dropping 12.4 percent in market value. Marriott International and Hyatt were particularly hit, losing 14.6 percent and 22.5 percent of their respective market values, following disappointing financial results, in addition to the negative impacts of a more bearish overall market sentiment. This downbeat market sentiment was reflected in the S&P 500 Index loss of 4.6 percent in market value. . 

The table below shows the market performances of the RIFC 50 Index and the S&P 500 Index over various time periods. For this first quarter 2025, the RIFC 50 Index significantly outperformed the S&P 500 Index (+1.1% vs. -4.6%). Over 1-year, 5-years, and 10-years, the RIFC 50 Index returned +3.1%, +106.2%, and 78.9% respectively, while it gained +484.8% since its inception in 2000. Over these same time periods, the S&P 500 Index returned, respectively, +6.8%, +117.1%, +171.4%, and +302.4%. It is to be noted that the exceptional performance of the S&P 500 Index in recent years has been mostly the results of a handful of mega high-tech companies that are not part of the franchise business sector.

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