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.

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. 

Third Quarter 2020

RIFC 50 IndexTM Regains Another 11.4% in Q3 2020

The RIFC 50 Index™ regained more of its large first quarter losses after going up 11.4 percent in 3rd quarter 2020. As the health situation improved in many parts of the United States and the world, more franchised businesses have reopened and/or resumed some services.

The RIFC 50 Index is still down percent 7.1 percent this year, up 26.8 percent over the last five years, up 95.4 percent over the last 10 years, and up 269.7 percent since its inception in 2000.

RIFC 50 Index and S&P 500 Index: Total Returns
Period RIFC 50 Index S&P 500 Index
3rd Quarter 2020 +11.4% +8.5%
Year-to-Date 2020 -7.1% +4.4%
1-Year -6.9% +13.0%
5-Year +26.8% +75.2%
10-Year +95.5% +194.7%
Since Inception (2000) +269.7% +141.2%

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