“By March 9, 2009, financial markets, as proxied by the S&P 500 Index, had dropped a shocking 25.1 percent from the beginning of the year, wiping out almost 15 years of gains.
Most firms’ share prices, including the components of the Rosenberg Center Franchise 50 Index, lost a large amount of their market value,” said Hachemi Aliouche, associate director of the Rosenberg International Center of Franchising at the University of New Hampshire Whittemore School of Business and Economics.
“However, by the end of the first quarter, a number of positive developments helped start a recovery. These included stronger than expected home sales; positive reactions to the Treasury Department’s plan to clean up banks’ toxic assets; gains in new orders of durable goods; and narrowing of the trade deficit. By the end of the quarter, the RCF 50 Index lost ‘only’ 11.6 percent of its value, while the S&P 500 Index dropped ‘only’ 11.7 percent,” Aliouche said.
The Rosenberg Center Franchise 50 Index tracks a representative set of 50 US publicly traded companies engaged in business format franchising. The index is down 11.6 percent over the year, compared to a decline of 11.7 percent for the S&P 500. Since its inception in 2000, the index is up 27.1 percent, compared to a drop of 42.8 percent for the S&P 500 over the same period.
Twenty components of the index ended the first quarter of 2009 with positive market gains, including Ruby Tuesday (RT), the developer, operator and franchisor of casual dining restaurants, which was the best performer in the index, up 87.3 percent in the quarter.
According to Aliouche, Ruby Tuesday benefitted from the powerful market rally that started after March 9, 2009; analysts’ positive comments that restaurants in general would benefit from the stabilizing economy; and Ruby Tuesday’s successes in stemming traffic declines at its restaurants through aggressive promotions and more focused advertising.
The worst performer of the RCF 50 Index this quarter was Jackson Hewitt Tax Service (JTX), losing 67.1 percent of its market value.
“Higher unemployment and reduced tax collections as a result of the current recession have had a negative impact on JTX’ business, leading its management to lower their forecasts for tax returns prepared, revenues, and earnings for 2009,” Aliouche said. “Also, in order to conserve capital, enhance liquidity and strengthen its balance sheet, JTX suspended its dividend of $0.18 per share in order to save the company $20 million a year. These actions were negatively perceived by investors and they sold off JTX’ shares, driving its share price down.”
For more information on the Rosenberg International Center of Franchising or the RCF 50 Index, please visit the center’s Web site at http://franchising.unh.edu.
The University of New Hampshire, founded in 1866, is a world-class public research university with the feel of a New England liberal arts college. A land, sea and space-grant university, UNH is the state’s flagship public institution, enrolling 11,800 undergraduate and 2,400 graduate students.
Associate director Hachemi Aliouche is available to discuss the latest Rosenberg Center Franchise 50 Index analysis. He can be reached at 603-862-1884 or email@example.com.
Hachemi Aliouche | Newswise Science News
Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik
RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
A new manufacturing technique uses a process similar to newspaper printing to form smoother and more flexible metals for making ultrafast electronic devices.
The low-cost process, developed by Purdue University researchers, combines tools already used in industry for manufacturing metals on a large scale, but uses...
For the first time ever, scientists have determined the cosmic origin of highest-energy neutrinos. A research group led by IceCube scientist Elisa Resconi, spokesperson of the Collaborative Research Center SFB1258 at the Technical University of Munich (TUM), provides an important piece of evidence that the particles detected by the IceCube neutrino telescope at the South Pole originate from a galaxy four billion light-years away from Earth.
To rule out other origins with certainty, the team led by neutrino physicist Elisa Resconi from the Technical University of Munich and multi-wavelength...
For the first time a team of researchers have discovered two different phases of magnetic skyrmions in a single material. Physicists of the Technical Universities of Munich and Dresden and the University of Cologne can now better study and understand the properties of these magnetic structures, which are important for both basic research and applications.
Whirlpools are an everyday experience in a bath tub: When the water is drained a circular vortex is formed. Typically, such whirls are rather stable. Similar...
Physicists working with Roland Wester at the University of Innsbruck have investigated if and how chemical reactions can be influenced by targeted vibrational excitation of the reactants. They were able to demonstrate that excitation with a laser beam does not affect the efficiency of a chemical exchange reaction and that the excited molecular group acts only as a spectator in the reaction.
A frequently used reaction in organic chemistry is nucleophilic substitution. It plays, for example, an important role in in the synthesis of new chemical...
Optical spectroscopy allows investigating the energy structure and dynamic properties of complex quantum systems. Researchers from the University of Würzburg present two new approaches of coherent two-dimensional spectroscopy.
"Put an excitation into the system and observe how it evolves." According to physicist Professor Tobias Brixner, this is the credo of optical spectroscopy....
13.07.2018 | Event News
12.07.2018 | Event News
03.07.2018 | Event News
20.07.2018 | Power and Electrical Engineering
20.07.2018 | Information Technology
20.07.2018 | Materials Sciences