UNH Franchising Index Extends Strong Rebound in Q1 2012

UNH Franchising Index Extends Strong Rebound in Q1 2012

Thursday, May 10, 2012

clark's nutcracker

Hachemi Aliouche, associate director of the Rosenberg International Center of Franchising at the UNH Whittemore School of Business and Economics.

The University of New Hampshire Rosenberg Center Franchise 50 Index, which tracks publicly traded companies in the United States engaged in business format franchising, rose 8.1 percent in the first quarter of 2012, extending its strong rebound from the dip in the third quarter of 2011.

“As more positive signs of improving global economic conditions continued to emerge, financial markets posted strong returns, with the S&P 500 Index jumping 12.0 percent this quarter, its best quarterly performance since the third quarter of 2009. It appears that improving economic conditions increased investors’ appetite for risk, prompting them to invest more heavily in stocks, especially in previously battered sectors such as financial services,” said Hachemi Aliouche, associate director of the Rosenberg International Franchise Center at the UNH Whittemore School of Business and Economics.

Of the 50 components of the Rosenberg Center Franchise 50 Index, 43 had positive returns this quarter. Jamba Juice Company, the owner and franchisor of Jamba Juice stores, was the biggest gainer (+58.5 percent).

“This quarter Jamba reported growing same store sales, increasing numbers of franchised stores, and a large reduction in net losses, making many investors believe that the company is starting to turn around as the economy improves,” Aliouche said.

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 Rosenberg Center Franchise 50 Index is up 145.0 percent, while the S&P 500 is up 1.0 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 Web site at http://franchising.unh.edu

Written by Lori Wright, UNH Media Relations. Photo by Lisa Nugent, UNH Photographic Services.