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Rocky Mountain Chocolate Factory (RMCF)
NASDAQ:RMCF
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Rocky Mountain Chocolate Factory
(NASDAQ:RMCF)
Rating:43Neutral
Price Target:
$1.50
▲(2.74% Upside)
Rocky Mountain Chocolate Factory (RMCF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.54M
Dividend YieldN/A
Average Volume (3M)40.16K
Price to Earnings (P/E)―
Beta (1Y)0.40
Revenue Growth5.81%
EPS Growth19.66%
CountryUS
Employees135
SectorConsumer Defensive
Sector Strength49
IndustryFood Confectioners
Share Statistics
EPS (TTM)-0.04
Shares Outstanding7,793,924
10 Day Avg. Volume20,665
30 Day Avg. Volume40,155
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.33
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit4.83
Enterprise Value/Ebitda-7.14
Forecast
1Y Price Target
$1.50Price Target Upside2.74% Upside
Rating ConsensusHold
Number of Analyst Covering0
Rocky Mountain Chocolate Factory Business Overview & Revenue Model
Company DescriptionRocky Mountain Chocolate Factory, Inc., together with its subsidiaries, operates as a confectionery franchisor, manufacturer, and retail operator. It operates through five segments: Franchising, Manufacturing, Retail Stores, U-Swirl Operations, and Other. The company produces approximately 400 chocolate candies and other confectionery products, including clusters, caramels, creams, toffees, mints, and truffles; and offers 15 varieties of caramel apples and other products that are prepared in individual stores, as well as provides ice cream, coffee, and other sundries. As of March 31, 2022, it operated two company-owned, 99 licensee-owned, and 159 franchised Rocky Mountain Chocolate Factory stores operating in 37 states in South Korea, Panama, and the Philippines; three company-owned, and 63 franchised and licensed cafés located in 22 states and Qatar; and self-serve frozen yogurt cafés under the U-Swirl, Yogurtini, CherryBerry, Yogli Mogli Frozen Yogurt, Fuzzy Peach Frozen Yogurt, Let's Yo!, and Aspen Leaf Yogurt brand names. The company has strategic alliance with Edible Arrangements, LLC and its affiliates to provide branded chocolate products. Rocky Mountain Chocolate Factory, Inc. was founded in 1981 and is headquartered in Durango, Colorado.
How the Company Makes MoneyRocky Mountain Chocolate Factory generates revenue through multiple streams, including retail sales from its franchised and company-owned stores, e-commerce sales via its website, and wholesale distribution to various retailers. The company’s franchise model allows it to expand its brand presence while earning franchise fees and royalties from franchisees. Additionally, RMCF engages in seasonal promotions and custom packaging services, which attract corporate clients looking for gifts and promotional items. Strategic partnerships with retailers and participation in events also contribute to its earnings, enabling RMCF to reach a broader audience and enhance brand visibility.
Rocky Mountain Chocolate Factory Earnings Call Summary
Earnings Call Date:Jul 15, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 08, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a positive shift in operational efficiency and a return to positive EBITDA, with significant improvements in franchise fees and operational costs. However, challenges remain with flat revenue growth and a continued net loss, albeit smaller. The strategic focus on brand refresh and new store openings is promising.Q1-2026 Updates
Positive Updates
Positive EBITDA Achieved
The company reported its first quarter of positive EBITDA in several years, reaching $2 million compared to a negative $1.4 million last year.
Improved Operational Efficiencies
Cost and expenses were reduced to $6.5 million from $8 million the previous year, driven by lower G&A costs and other operational efficiencies.
Franchise and Royalty Fees Increase
Franchise and royalty fees increased to $1.7 million from $1.1 million, attributed to more same-store sales and collections of outstanding amounts.
Introduction of New POS System
The rollout of a new POS system to over 100 stores has enhanced decision-making and provided better insights into store performance.
Opening of New Stores and Brand Refresh
New store opened in Charleston, South Carolina, featuring a refreshed brand identity. Construction for a new store in Chicago is expected to begin shortly.
Negative Updates
Flat Total Revenue
Total revenue for the quarter was $6.4 million, essentially flat compared to the prior period, with product sales declining from $5.3 million to $4.7 million.
Net Loss Continues
The company reported a net loss of $0.3 million or negative $0.04 per share, although this is an improvement from a net loss of $1.7 million or negative $0.26 per share the previous year.
Loss of Large Specialty Market Customer
The company did not renew a large specialty market customer, resulting in a $500,000 drop in sales, though it improved overall margin.
Company Guidance
During the conference call, Rocky Mountain Chocolate Factory provided a detailed update on its operational and financial guidance for the fiscal first quarter of 2026. Interim CEO Jeff Geygan highlighted the company's transition from a rebuilding phase to an execution phase, emphasizing improvements in supply chain efficiency and franchisee support. The company implemented a flat monthly fee for freight delivery to enhance product freshness, and price adjustments were made to achieve targeted gross margins. Additionally, the rollout of a new point-of-sale system and ERP system has improved visibility and decision-making across the business. Financially, the company reported total revenue of $6.4 million, with product sales at $4.7 million and franchise and royalty fees rising to $1.7 million. The net loss improved to $0.3 million from $1.7 million the previous year, and the EBITDA turned positive for the first time in several quarters, reaching $2 million. CFO Carrie Cass attributed these improvements to better pricing strategies, operational efficiencies, and reduced costs. The company is also focused on expanding its franchise network and enhancing its brand through new store openings and a refreshed digital presence.Rocky Mountain Chocolate Factory Financial Statement Overview
Summary
Rocky Mountain Chocolate Factory faces significant financial challenges, including declining revenue, negative profitability margins, increased financial leverage, and negative cash flows. These factors indicate operational inefficiencies, market pressures, and liquidity concerns.Income Statement
Rocky Mountain Chocolate Factory has experienced declining revenue with a negative trend in profitability margins. The gross profit margin has decreased from 36.9% in 2020 to 11% in 2025, indicating cost pressures or inefficiencies. The net profit margin has been negative over recent years, with a downward trajectory from 3.2% in 2020 to -20.7% in 2025. Revenue growth has been unstable, with significant declines, especially evident from 2024 to 2025. This trend reflects challenges in maintaining a stable revenue stream and profitability.45
Neutral
Balance Sheet
The company's financial leverage has increased, with the debt-to-equity ratio rising from 0.14 in 2020 to 1.03 in 2025, indicating higher financial risk. The equity ratio has declined, reflecting a reduced buffer to absorb potential losses. Additionally, return on equity has been consistently negative due to ongoing net losses, showcasing poor returns for shareholders. The balance sheet indicates a weakened financial position and reduced investor confidence.30
Negative
Cash Flow
Operating cash flow has turned negative, with significant declines from 2020 to 2025, reflecting operational challenges. Free cash flow has also deteriorated, indicating insufficient cash generation to cover capital expenditures. The operating cash flow to net income ratio is negative, further highlighting inefficiencies in converting income into cash. The cash flow situation poses liquidity risks and limits the company's financial flexibility.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.55M | 29.58M | 27.95M | 30.43M | 32.34M | 21.76M |
| Gross Profit | 5.57M | 3.25M | 4.71M | 8.15M | 10.99M | 5.65M |
| EBITDA | -3.77M | -4.72M | -3.94M | -4.10M | 223.65K | -361.00K |
| Net Income | -4.79M | -6.12M | -4.17M | -5.49M | -342.00K | -900.00K |
Balance Sheet | ||||||
| Total Assets | 20.10M | 21.18M | 20.58M | 21.99M | 26.88M | 24.95M |
| Cash, Cash Equivalents and Short-Term Investments | 893.00K | 720.00K | 2.08M | 4.72M | 7.59M | 5.63M |
| Total Debt | 7.10M | 7.21M | 2.94M | 2.39M | 1.81M | 1.96M |
| Total Liabilities | 13.36M | 14.20M | 9.94M | 7.62M | 7.48M | 6.05M |
| Stockholders Equity | 6.73M | 6.97M | 10.64M | 14.37M | 19.40M | 18.90M |
Cash Flow | ||||||
| Free Cash Flow | -7.60M | -10.36M | -5.45M | -3.10M | 1.91M | -186.19K |
| Operating Cash Flow | -4.09M | -6.59M | -2.43M | -2.10M | 2.86M | 67.35K |
| Investing Cash Flow | -1.79M | -1.66M | -1.45M | -767.82K | -605.00K | -70.99K |
| Financing Cash Flow | 6.14M | 6.89M | 1.25M | 0.00 | -299.06K | 814.86K |
Rocky Mountain Chocolate Factory Technical Analysis
Negative
1.46
Price Trends
1.60
Negative
1.42
Positive
1.76
Negative
Market Momentum
-0.04
Positive
41.70
Neutral
52.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMCF, the sentiment is Negative. The current price of 1.46 is below the 20-day moving average (MA) of 1.51, below the 50-day MA of 1.60, and below the 200-day MA of 1.76, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.70 is Neutral, neither overbought nor oversold. The STOCH value of 52.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RMCF.
Rocky Mountain Chocolate Factory Risk Analysis
Rocky Mountain Chocolate Factory disclosed 32 risk factors in its most recent earnings report. Rocky Mountain Chocolate Factory reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rocky Mountain Chocolate Factory Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $37.18B | 24.01 | 35.89% | 2.99% | 2.55% | -16.52% | |
76 Outperform | $3.24B | 32.25 | 10.49% | 0.66% | -3.75% | -3.91% | |
67 Neutral | $80.29B | 22.63 | 13.51% | 3.04% | 3.14% | -5.80% | |
63 Neutral | $20.46B | 14.51 | -3.60% | 3.15% | 2.60% | -5.31% | |
43 Neutral | $11.54M | ― | -60.80% | ― | 5.81% | 19.66% | |
| ― | $12.74M | ― | -43.37% | ― | ― | ― | |
| ― | $29.59M | ― | -93.56% | ― | ― | ― |
* Consumer Defensive Sector Average
Performance Comparison
RMCF
Rocky Mountain Chocolate Factory
1.46
-0.36
-19.78%
PLAG
Planet Green Holdings
1.75
-0.09
-4.89%
HSY
The Hershey Company
181.66
-3.88
-2.09%
TR
Tootsie Roll
40.80
12.37
43.51%
MDLZ
Mondelez International
62.05
-6.71
-9.76%
SEGG
SEGG Media
0.75
-0.02
-2.60%
Rocky Mountain Chocolate Factory Corporate Events
Shareholder Meetings
Rocky Mountain Chocolate Factory Holds Annual Meeting
Neutral
Aug 15, 2025
On August 12, 2025, Rocky Mountain Chocolate Factory held its Annual Meeting of Stockholders virtually, with a quorum present as 71.72% of shares were represented. During the meeting, directors were elected, the appointment of CohnReznick LLP as the independent registered public accounting firm was ratified, and the compensation of named executive officers was approved on an advisory basis.
Delistings and Listing Changes
Rocky Mountain Chocolate Factory Transfers to Nasdaq Capital Market
Neutral
Jul 23, 2025
On January 21, 2025, Rocky Mountain Chocolate Factory was informed by Nasdaq that it did not meet the minimum stockholders’ equity requirement for listing on The Nasdaq Global Market. Subsequently, on July 22, 2025, Nasdaq approved the company’s request to transfer its listing to The Nasdaq Capital Market, effective July 24, 2025, allowing its stock to continue trading under the symbol ‘RMCF.’
Delistings and Listing ChangesRegulatory Filings and Compliance
Rocky Mountain Chocolate Factory Regains Nasdaq Compliance
Neutral
Jun 23, 2025
Rocky Mountain Chocolate Factory faced a delay in filing its Annual Report for the fiscal year ended February 28, 2025, which led to a notice from Nasdaq about non-compliance with listing rules. The company resolved the issue by filing the report on June 20, 2025, and subsequently regained compliance with Nasdaq’s requirements by June 23, 2025, ensuring no immediate impact on its stock listing.
Executive/Board Changes
Rocky Mountain Chocolate Factory VP Resignation Announced
Neutral
May 30, 2025
On May 27, 2025, Rocky Mountain Chocolate Factory announced that Ryan McGrath, the Senior Vice President of Operations, intends to resign effective July 3, 2025. His resignation is not due to any disagreements with the company’s operations, policies, or practices.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.