FRANDEX Jumps 12.3%, Led Broad Indices in 2014

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The FRANdex a market index that tracks publicly traded franchise companies, show franchise companies as having outperformed broader indices, advancing 12.3%.

Concerned about geopolitical tensions, plunging oil prices, and global economic growth, volatility in the stock market picked up in the fourth quarter. Nevertheless, the market kept rising and came back strong after two large sell-offs in October and early December.

The S&P 500 gained 4.4% for the quarter and Russell 2000 returned 9.4%. Franchise companies’ performance was in line with the general market, trailing small caps with an 8.4% advance. Gains in the quarter were led by food brands, up 12%. Non-food brands rose 6.3%.

In 2014, franchise companies had a stellar year with FRANdex jumping 12.3%. It outperformed both S&P and Russell, which registered 11.4% and 3.5%, respectively. Specifically, non-food brands gained 15.5% for the year, while food posted 4.5%. The lodging industry continued to respond positively to the overall economy. Marriott and Hilton were among the biggest gainers, after adjusting for component weights.

FRANdex continues to outperform the broader indices. Its adjusted period-over-period changes were on average 1.4% higher than that for S&P and 1.3% higher than that for Russell, based on the actual index levels without normalization over the past 35 quarters.

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Meme Moy
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