Wendy’s Surge Boosts UNH Franchising Index in Q3 2013

Wendy’s Surge Boosts UNH Franchising Index in Q3 2013

Tuesday, November 05, 2013

The UNH Rosenberg Center Franchise 50 Index, which tracks publicly traded companies in the United States engaged in business format franchising, rose 2.2 percent in the third quarter of 2013, boosted by strong performance from Wendy’s. 

Wendy’s was the best performing component of the Rosenberg Center Franchise 50 Index this quarter. 

“Share prices of Wendy’s, the owner and franchisor of fast food restaurants in North America and internationally, shot up 46.2 percent this quarter, validating the success of the company’s brand transformation strategy. This strategy includes repositioning the company as a restaurant chain offering high quality products, new restaurant development, a new Wendy’s logo, innovative products, enhanced marketing, improved customer service, restaurant upgrades, and selling company-owned units to proven franchise owners,” said Hachemi Aliouche, co-director of the Rosenberg International Franchise Center at the Peter T. Paul College of Business and Economics. 

1-800-Flowers, the operator and franchisor of floral and gift stores, was the weakest performer this quarter, losing 21.2 percent of its market value. “Increased competition, notably from Amazon, and weaker than expected financial results drove investors away,” Aliouche said.   

Thirty six components of the Rosenberg Center Franchise 50 Index made positive gains this quarter while 14 lost value.   

Although it gained market value this quarter, the RCF 50 Index did not do as well as the S&P 500 Index, which continued to have a strong performance, gaining 4.7 percent this quarter and 17.9 percent year-to-date. The Rosenberg Center Franchise 50 Index tracks a representative set of 50 publicly traded companies in the United States engaged in business format franchising. Since its inception in 2000, the RCF 50 Index is up 165.6 percent while the S&P 500 is up 20.6 percent over the same period.  

For more information on the Rosenberg International Franchise Center or the Rosenberg Center Franchise 50 Index, visit the center’s website at http://paulcollege.unh.edu/research/about-center.