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NEW YORK -- 7-Eleven Inc., the world's largest convenience store chain, came out on top as the best performer in the second quarter of 2005 in The Rosenberg Center Franchise 50 Index, while the battle of the burgers sees Wendy's as the second-best performer this quarter and McDonald's tumbling to the third worst-performer spot.
The Rosenberg Center Franchise 50 Index, developed by The William Rosenberg International Center for Franchising at the University of New Hampshire Whittemore School of Business and Economics, is an index that tracks the market performance of the top 50 U.S. public franchisors. These 50 franchisors represent more than 98 percent of the market capitalization of all U.S. public companies engaged in business format franchising.
The Franchise 50 Index more than made up its 0.1 percent first-quarter 2005 drop as it gained 0.9 percent in the second quarter 2005, despite a tumble of 10.9 percent in market value of McDonald's, the largest component of the index. The S&P was up 0.9 percent, while the Dow Jones Industrials Average was down 2.2 percent, and the Nasdaq surged 2.9 percent this quarter.
Of the 50 components comprising the RCF50 Index, 30 were up while 20 were down in the second quarter. 7-Eleven led the winners with a 26 percent jump, followed by Wendy's International (25.5 percent) and Aaron's Rents Inc. (4.5 percent). The biggest losers were Buffalo Wild Wings (-17.5 percent), Spherion Corp. (-11.2 percent) and McDonald's (-10.9 percent).
The stock price of 7-Eleven jumped 26 percent in the second quarter after reporting best financial results in more than a decade. According to the report, “The company's higher profits, total sales and same-store sales were fueled by strong gasoline sales, and new and improved coffee, sandwiches and other offerings. Among its new offerings were a new flavor of its signature icy treat Slurpee branded SpongeBob SquarePants, and Stir Crazy, a frozen dessert. In June, 7-Eleven launched a month-long celebration of the Slurpee's 40th anniversary, with the introduction of several new flavors and the awards of prizes and promotions.”
The RCF 50 Index is up 0.9 percent over the first half of 2005. It is up 53.7 percent since January 2000, while the S&P 500 is down 14.6 percent over the same period.
The full Rosenberg Center Franchise 50 Index second quarter report for 2005 is available at http://www.unh.edu/news/docs/F50Q205.pdf. For more information on the William Rosenberg International Center of Franchising or the Rosenberg Center Franchise 50 Index, please visit the Center's web site at http://franchising.unh.edu