What FRANdata Thinks

FRANdex: Mounting Economic Concerns Weigh Down FRANdex in Q3

October 16th, 2019 by Ritwik Donde

Improved market for dining out help food franchises outdo their non-food counterparts in Q3. In Q3-2019, franchise companies’ (including McDonald’s) returns were in line with S&P 500 but underperformed the Russell 2000 index. Food franchises outperformed their non-food counterparts. Returns for FRANdex+M declined by 5.46% Q-o-Q, with those for food companies up down 3.13% Q-o-Q.

FRANdata has been studying the trajectory of publicly-traded franchises for more than 3 years. FRANdex tracks the performance, based on market capitalization, of 62 U.S.-based publicly-traded companies operating under and generating income through the franchise business model. All index levels are normalized to 1,000 at Q1 2006 for comparison purposes, and all remaining periods are adjusted accordingly.

Read the full report here.


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