How the Dow Crash has Impacted Franchising

February 7th, 2018 by Melinda Modica

FRANdata developed and uses the FRANdex  to see how franchising is performing against other indexes like the Dow Jones. With the recent crash of the Dow, we take a look at the impact it’s had on franchising.

dow-crash-feb-2018

 

The falling stock market crash had a significant impact on companies in the FRANdex:

  • Its periodic decline after the Crash was greater than the impact on S&P 500, but the index performed better than Russell 2000
  • FRANdex was down 3.3% after the Crash, while Russell 2000 was down 4.7%, while S&P 500 was down 2.7% as of the morning of Feb 6th

Lodging brands showed most resilience against the falling stock markets:

  • Lodging companies’ returns in the FRANdex were largely flat; down only by 0.7%
  • Returns on food and non-food concepts (excluding lodging companies) were down 3.7% and 7.2%, respectively

Leave a Reply

Your email address will not be published. Required fields are marked *