Franchise Brands Continue Outperforming S&P 500 Index

Franchise brands continue to be strong financial performers and great investment opportunities, according to the University of New Hampshire’s franchising sector-focused RIFC 50 Index. The index gained another 7.3 percent in the second quarter, following an 8.4 percent gain in the first quarter of this year. The index tracks the financial market performance of the U.S. franchising sector.

“This performance was almost twice as strong as that of the S&P 500 Index’s 3.8 percent gain this quarter,” said E. Hachemi Aliouche, director of the Rosenberg International Franchise Center at UNH’s Peter T. Paul College of Business and Economics.

The best performer in the index this last quarter was Del Taco, which saw a 32.8 percent jump in market value. The RIFC 50 Index is up 11.3 percent over the last 12 months, 28.5 percent over the last five years, and 297.2 percent since its 2000 inception.

The latest data also reveals brands in the index continue to be targets of acquisition. Canada-based MTY Food Group completed the acquisition of pizza brand Papa Murphy’s in May for approximately $190 million. The company’s portfolio now includes TCBY Frozen Yogurt, Cold Stone Creamery, Baja Fresh, Pinkberry, and Planet Smoothie.

“Our RIFC 50 Index quarterly report offers a succinct look at the financial performance of the U.S. franchising business sector and compares it to the overall market performance represented by the S&P 500 Index,” said Aliouche. Recent quarterly reports are available on the center’s website at unh.edu/rosenbergcenter/rcf-50-index.