The S&P ended the fourth quarter with a 1.0% drop as a result of the aftermath caused by Sandy and stalled negotiations in Washington that threatened to plunge the economy. Small-cap stocks outperformed large-cap equities as Russell added 1.2% for the quarter. FRANdex, up 0.8%, continued its gains for the fifth consecutive quarter.
45 stocks included in the FRANdex gained 23.2% in 2012, while S&P and Russell registered 13.4% and 14.6%, respectively.
Based on the actual index levels without normalization, over the past 27 quarters FRANdex's period-over-
About FRANdex and FRANdex+M
FRANdex and FRANdex+M track the performance, based on market capitalization, of the largest 45 and 46 U.S. publicly-traded companies, respectively, that use the business format franchising model. Collectively the companies operate 108 franchise brands. All index levels are normalized to 1,000 at Q1 2006 for comparison purposes and all remaining periods are adjusted accordingly. FRANdex+M includes the McDonald's Corporation. Since McDonald's represents more than 25% of the overall market capitalization of publicly-traded franchise companies, it is excluded from FRANdex but included in FRANdex+M for comparative purposes. FRANdex includes publicly traded companies where franchising is material to the company's financial performance and business operations.
FRANdata is an independent research company that tracks and analyzes franchises and their performance. The Arlington, Va.-based company is often called upon by investors and private equity firms to help them identify brands that meet their target performance metrics, and provide due diligence research as the deal progresses. FRANdata is often cited as an expert in such leading media as The New York Times, The Wall Street Journal and The Washington Post. Additional information is available on the company's website, http://frandata.com/
A copy of the performance charts are available by contacting Amy Bannon at firstname.lastname@example.org or 202-789-1940.