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.

Third Quarter 2022

RIFC 50 Index Component Wingstop has a Blockbuster Quarter while Hilton and Hyatt have Robust Performances Despite Challenging Business Environment in 3rd Quarter 2022

The franchising business sector, like most other business sectors, is attempting to recover from the severe double digit losses sustained in the second quarter of 2022.

This quarter, the RIFC 50 Index, reflecting the performance of the US franchising sector, lost “only” 2.6 percent, while the S&P 500 Index, reflecting the general US financial markets, lost 5.3 percent. Twenty one of the 50 components of the RIFC 50 Index made positive gains this quarter, a big improvement from last quarter when only one component had made gains. High inflation, increasing interest rates, labor shortages, and global conflicts continue to challenge most businesses, including franchised businesses. A majority of travel-related components, such as Hilton (+8.4 percent) and Hyatt (+9.5 percent), though, had robust performances this quarter, benefitting from the resurgence of leisure travel and tourism following the fading Covid pandemic. Overall, restaurant operator and franchisor Wingstop had the best performance this quarter, jumping 67.6 percent, boosted by a new successful menu and a strong financial outlook. The RIFC 50 Index is down 21.0 percent year-to-date, and down 11.8 percent over the last 12 months. It is up 22.9 percent and up 82.3 percent over the last 5 years and 10 years respectively, and up 328.6 percent since its inception in 2000.

RIFC 50 Index and S&P 500 Index: Total Returns
Period RIFC 50 Index S&P 500 Index
3rd Quarter 2022 -2.6% -5.3%
1-Year -11.8% -16.8%
5-Year +22.9% +42.3%
10-Year +82.3% +148.9%
Since Inception (2000) +328.6% +157.1%

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

Second Quarter 2022

Franchise Sector Battered in Q2 2022 as Financial Markets Dip into Bear Market Territory

H&R Block Bucks the Trend With 36 Percent Gain

Most US business sectors took a severe beating this 2nd quarter 2022, battered by historically high inflation, increasing interest rates, continuing supply chain disruptions, labor shortages, and global conflicts.

The RIFC 50 Index took a steep drop, falling 11.5 percent, reflecting the challenging conditions facing franchised businesses. Most other US business sectors were hit even harder as is reflected by the 16.5 percent fall in the S&P 500 this quarter, pushing this index into bear market territory. Almost all components of the RIFC 50 index lost market value this quarter, most by double digits. Tax services provider H&R Block was the standout component this quarter, gaining 36 percent in market value, fueled by strong financial results and a favorable outlook. The RIFC 50 Index is down 18.9 percent year-to-date, and down 4.9 percent over the last 12 months. It is up 28.3 percent and up 91.8 percent over the last 5 years and 10 years respectively, and up 339.9 percent since its inception in 2000.

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 2022 -11.5% -16.5%
1-Year -4.9% -11.9%
5-Year +28.3% +56.2%
10-Year +91.8% +177.9%
Since Inception (2000) +339.9% +171.5%

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

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.

RIFC 50 Index and S&P 500 Index: Total Returns
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.

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.