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 2023

RIFC 50 Index Ends Year with Bang, Gaining 11.1 percent in 4Q 2023

A strong and broad upsurge of most franchise business sectors propelled the RIFC 50 Index to a solid finish in 4Q 2023, adding 11.1 percent to its market value. Thirty six of the 50 components of the Index made positive gains, with 18 of them making double digit gains.

A strong US job market, robust consumer spending, and investor confidence that the Federal Reserve was finished raising interest rates contributed to market gains in most US business sectors, and particularly in the franchise business sector.

The franchised food business sector was particularly strong this quarter, as illustrated by the remarkable performance of Index component Dutch Bros., the operator and franchisor of drive-thru coffee shops. Dutch Bros gained over 80 percent in market value this quarter. Dutch Bros is expanding aggressively, adding 160 new stores in 2023, with plans to grow to 4,000 stores over time from 831 units at the end of 2023.

The RIFC 50 Index’ performance in the last quarter of 2023 was on par with that of the S&P 500 Index (11.1 percent vs. 11.2 percent), though the S&P 500 Index’ strong performance was mostly due to a handful of mega hi-tech stocks (the so called “Magnificent Seven”). Due in large part to the outsize performance of the “Magnificent Seven” mega high-tech companies, the S&P 500 Index outperformed the RIFC 50 Index (24.2 percent vs. 14.3 percent) in 2023. The RIFC 50 Index is up 31.5 percent over the last 3 years, and 60.6 percent and 92.5 percent over the last 5 years and 10 years respectively. It is up 448.5 percent since its inception in 2000.

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

Period RIFC 50 Index S&P 500 Index
4th Quarter 2023 +11.1% +11.2%
1-Year +14.3%% +24.2%
5-Year +60.6% +90.3%
10-Year +92.5% +158.1%
Since Inception (2000) +448.5% +242.1%

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

Second Quarter 2023

RIFC 50 Index Makes Solid 6.7% Gain in Q2 2023 Confirming Strong Recovery of Franchising Sector

The RIFC 50 Index gained 6.7 percent this quarter with broad contributions across most franchise sectors as 32 of the 50 components made positive gains.

TIts 11.5 percent gain year-to-date confirms the strong recovery of the franchising business sector. The Aaron Company, a leader in the lease ownership business sector, had the best performance this quarter, jumping 45.8 percent in market value, driven by better than expected financial and operational results. On the other hand, fitness operator and franchisor F45 Training Holdings, continues to struggle, losing another 56.9 percent in market value this quarter after repeatedly missing financial expectations.

The RIFC 50 Index is up 6.5 percent this quarter, 11.5 percent YTD, 21.5 percent over the last 12 months, and 61.1 percent over the last 3 years. It is up 49.8 percent and 105.7 percent over the last 5 years and 10 years respectively, and up 434.7percent since its inception in 2000. The RIFC 50 Index significantly outperformed the S&P 500 Index over the last 3 years when the Covid pandemic was widespread, signalling that the franchise business sector may be more resilient than most other sectors of the US economy. However, more recently, the outsize performance of the mega-cap technology companies such as Apple and Nvidia has pushed the S&P 500 Index ahead.

RIFC 50 Index and S&P 500 Index: Total Returns
Period RIFC 50 Index S&P 500 Index
2nd Quarter 2023 +6.5% +7.6%
1-Year +21.5% +17.6%
5-Year +49.8% +63.7%
10-Year +105.7% +177.1%
Since Inception (2000) +434.7% +219.1%

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

First Quarter 2023

The RIFC 50 Index Starts 2023 with Positive 4.7% Gain

The RIFC 50 Index added 4.7 percent in market value in the first quarter 2023, signaling a continuation of the recovery of the franchise business sector. The Index has now soared 77.1 percent from its March 2020 level when it was heavily hit as a result of the Covid 19 pandemic.

Red Robin Gourmet Burgers (RRGB), the developer, operator, and franchisor of casual-dining restaurants, was by far the best performer this quarter, jumping almost 160 percent, a substantial rebound from last year’s dismal 66 percent drop. F45 Training Holdings (FXLV), the fitness operator and franchisor, on the other hand, was the worst performer, dropping almost 59 percent.

The RIFC 50 Index is up 4.7 percent this quarter, up 1.0 percent over the last 12 months, and up 77.1 percent over the last 3 years. It is up 39.0 percent and up 92.0 percent over the last 5 years and 10 years respectively, and up 402.1 percent since its inception in 2000. The RIFC 50 Index significantly outperformed the S&P 500 Index over the last 3 years when the Covid pandemic was widespread, signalling that the franchise business sector may be more resilient than most other sectors of the US economy.

RIFC 50 Index and S&P 500 Index: Total Returns
Period RIFC 50 Index S&P 500 Index
1st Quarter 2023 +4.7% +7.8%
1-Year +1.0% -8.7%
5-Year +39% +56.7%
10-Year +92% +163.7%
Since Inception (2000) +402.1% +196.7%

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