2018 Q3 FRANdex: PE Impacts Q3 Performance

2018 Q3 FRANdex: PE Impacts Q3 Performance

Just as the FRANdex had started showing signs of recovery in the previous quarter, the rise in take-private PE acquisitions created dents to the index performance in Q3-2018. FRANdex underperformed both the broad indices. While the S&P 500 rose by 4.8%, Russell 500 declined by 3.2%; in the same period FRANdex declined by 5.1% q-o-q.

  • New Brands:  Realogy and Goosehead Insurance
  • Delisted due to going private:  La Quinta, Zoe’s Kitchen, Jamba Juice, Sonic Drive-In, these companies were taken private following acquisitions by PE investors
  • Removed: Liberty Tax  as of this publish date this brand has been delisted by NASDAQ following non-compliance issues.

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.

 

About the Analyst

 

Ritwik Donde
SENIOR RESEARCH ANALYST

Ritwik’s expertise as a senior research analyst has allowed him to analyze the ins and outs of the operational and financial performances of hundreds of franchise brands.

 

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