With extreme and hard-to-predict gyrations of global stock markets in recent months, it seems that many place greater emphasis on the slightest turns of phrase by the Federal Reserve and ignore the fundamentals.
We examined some of the best-performing publicly traded companies on the Franchise Times Top 200+ list to see if their sales growth correlated with similar gains on the Street.
With an 11.3 percent growth in sales during 2014, Domino’s shares rose from $94.17 to $105.10, a similar 11.6 percent year-to-date increase. Sales at Buffalo Wild Wings were up 16.9 percent during 2014, but shares increased only 8.9 percent—up from $180.38 to $196.50. With even less correlation, Popeyes saw its sales rise 14.2 percent, while its stock price only increased 1.3 percent during the year, to $57.02.
On the darker side of the moon, Bojangles saw an 11.9 percent sales increase in 2014, but its stock price decreased 28.3 percent since its May IPO. Amid a very solid period of growth in the hotel market, shares of Wyndham Hotels & Resorts fell 8.7 percent, even as its annual sales increased 17.6 percent during 2014.