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Rocky Mountain Chocolate Factory (RMCF)
:RMCF
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Rocky Mountain Chocolate Factory
(NASDAQ:RMCF)
Rating:46Neutral
Price Target:
$1.50
▼(-8.54% Downside)
Rocky Mountain Chocolate Factory (RMCF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.24M
Dividend YieldN/A
Average Volume (3M)43.36K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth5.81%
EPS Growth19.66%
CountryUS
Employees135
SectorConsumer Defensive
Sector Strength52
IndustryFood Confectioners
Share Statistics
EPS (TTM)-0.04
Shares Outstanding7,793,924
10 Day Avg. Volume23,241
30 Day Avg. Volume43,361
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.20
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit4.83
Enterprise Value/Ebitda-7.14
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
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 several key streams. Primarily, the company earns money from the sale of its chocolates and confectionery products via its network of franchised and company-owned retail stores. Franchise fees and royalties from its franchisees also contribute significantly to its income. Additionally, RMCF benefits from wholesale operations, distributing its products to third-party retailers and other outlets. Strategic partnerships and seasonal promotions further enhance its revenue, as do online sales through its e-commerce platform, allowing RMCF to reach a broader customer base beyond its physical locations.
Rocky Mountain Chocolate Factory Earnings Call Summary
Earnings Call Date:Jul 15, 2025
(Q1-2026)
| % Change Since: -14.14%|
Next Earnings Date:Oct 08, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted positive developments such as achieving positive EBITDA, improved gross profit, and cost reductions, alongside strategic expansions and system implementations. However, challenges include flat revenue, a decline in product sales due to loss of a major customer, and ongoing net losses. The uncertainty regarding permanent leadership also remains a concern.Q1-2026 Updates
Positive Updates
First Quarter Positive EBITDA
Rocky Mountain Chocolate Factory reported positive EBITDA for the first time in several years, reaching $2 million compared to a negative $1.4 million in the previous year.
Improved Gross Profit
Total product and retail gross profit increased to $0.3 million from a negative $0.3 million, driven by pricing adjustments and operational efficiencies.
Reduction in Costs and Expenses
Costs and expenses decreased to $6.5 million from $8 million last year due to lower G&A costs and operating efficiencies.
Expansion and Brand Refresh Initiatives
The company opened a new store in Charleston, South Carolina, with a modern brand identity and is preparing to open a premier location in downtown Chicago.
Implementation of New Systems
Adoption of a new POS system accelerated, enhancing decision-making and providing key insights. ERP implementation improved visibility into inventory and operational performance.
Negative Updates
Flat Total Revenue
Total revenue for the quarter was $6.4 million, essentially flat compared to the prior period.
Decline in Product Sales
Product sales decreased to $4.7 million from $5.3 million due to not renewing a large specialty market customer.
Net Loss
The company reported a net loss of $0.3 million or a negative $0.04 per share, compared to a net loss of $1.7 million or negative $0.26 per share the previous year.
Uncertainty in Leadership
Permanent leadership timing remains uncertain, with discussions ongoing with the Board.
Company Guidance
During the conference call, Rocky Mountain Chocolate Factory provided guidance on several key metrics and strategic initiatives. The company reported total revenue of $6.4 million for the first fiscal quarter of 2026, with product sales at $4.7 million and franchise and royalty fees increasing to $1.7 million. Notably, the company achieved a positive EBITDA of $2 million, a significant improvement from a negative $1.4 million in the prior year. The call highlighted operational changes, including waiving freight charges and shifting to a flat monthly fee to improve product freshness and consistency. They also implemented product price adjustments in March and June to enhance gross margin capture. The company deployed new ERP and POS systems, providing improved financial data and insights, which aid in optimizing store performance and profitability. With these advancements, they successfully rolled out a new POS system to over 100 stores and expect full compliance in the coming months. The company opened a new store in Charleston and plans to open another in Chicago, signaling strategic expansion. Additionally, they are focused on enhancing their digital presence with a new e-commerce platform and packaging redesign, aiming to boost online conversions and in-store traffic. The company also noted a reduction in costs and expenses to $6.5 million, down from $8 million, driven by improved operational efficiencies and lower G&A expenses. These efforts reflect their broader strategy to drive sustainable growth and long-term value creation.Rocky Mountain Chocolate Factory Financial Statement Overview
Summary
Rocky Mountain Chocolate Factory is facing significant financial challenges, including declining revenue, negative profit margins, increased leverage, and negative cash flows. These issues highlight operational inefficiencies and financial risks.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 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 29.58M | 27.95M | 30.43M | 32.34M | 23.48M |
| Gross Profit | 3.25M | 4.71M | 8.15M | 10.99M | 5.65M |
| EBITDA | -4.72M | -3.94M | -4.10M | 223.65K | -361.00K |
| Net Income | -6.12M | -4.17M | -5.49M | -342.00K | -900.00K |
Balance Sheet | |||||
| Total Assets | 21.18M | 20.58M | 21.99M | 26.88M | 24.95M |
| Cash, Cash Equivalents and Short-Term Investments | 720.00K | 2.08M | 4.72B | 7.59M | 5.63M |
| Total Debt | 7.21M | 2.94M | 2.39M | 1.81M | 1.96M |
| Total Liabilities | 14.20M | 9.94M | 7.62M | 7.48M | 6.05M |
| Stockholders Equity | 6.97M | 10.64M | 14.37M | 19.40M | 18.90M |
Cash Flow | |||||
| Free Cash Flow | -10.36M | -5.45M | -3.10M | 1.91M | -186.19K |
| Operating Cash Flow | -6.59M | -2.43M | -2.10M | 2.86M | 67.35K |
| Investing Cash Flow | -1.66M | -1.45M | -767.82K | -605.00K | -70.99K |
| Financing Cash Flow | 6.89M | 1.25M | 0.00 | -299.06K | 814.86K |
Rocky Mountain Chocolate Factory Technical Analysis
Neutral
1.64
Price Trends
1.50
Positive
1.39
Positive
1.85
Negative
Market Momentum
0.04
Positive
46.86
Neutral
1.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMCF, the sentiment is Neutral. The current price of 1.64 is below the 20-day moving average (MA) of 1.79, above the 50-day MA of 1.50, and below the 200-day MA of 1.85, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 46.86 is Neutral, neither overbought nor oversold. The STOCH value of 1.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $38.30B | 25.11 | 35.89% | 2.90% | 2.55% | -16.52% | |
67 Neutral | $80.61B | 22.75 | 13.51% | 3.02% | 3.14% | -5.80% | |
64 Neutral | $3.17B | 31.80 | 10.39% | 0.71% | -5.52% | -5.01% | |
62 Neutral | HK$21.21B | 10.43 | 4.01% | 5.10% | 0.02% | -36.83% | |
46 Neutral | $12.24M | ― | -60.80% | ― | 5.81% | 19.66% |
* Consumer Defensive Sector Average
Performance Comparison
RMCF
Rocky Mountain Chocolate Factory
1.57
-0.18
-10.29%
HSY
The Hershey Company
188.94
-6.80
-3.47%
TR
Tootsie Roll
38.61
11.04
40.04%
MDLZ
Mondelez International
62.30
-6.02
-8.81%
Rocky Mountain Chocolate Factory Corporate Events
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.