Rocky Mountain Chocolate Factory, Inc.
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About the company
Rocky Mountain Chocolate Factory, Inc. (RMCF) operates primarily within the confectionery industry, functioning as a franchisor, a manufacturer, and a direct retail operator of sweet treats. The company's business activities are categorized into five distinct segments: Franchising, Manufacturing, Retail Stores, U-Swirl Operations, and a general "Other" category.
- CEO
- Allen C. Harper
- IPO
- 1986
- Employees
- 145
- HQ
- Durango, CO, US
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- Market Cap
- $11.33M
- P/E
- -1.86
- PEG
- 0.44
- P/S
- 0.42
- P/B
- 2.72
- EV/EBITDA
- -6.29
- Div Yield
- 0.00%
- Gross Margin
- 18.78%
- Op Margin
- -15.82%
- Net Margin
- -19.84%
- ROE
- -100.52%
- ROIC
- -33.26%
Latest fiscal year · YoY change
- Revenue
- $27.50M-7.0%
- Gross Profit
- $2.80M-13.9%
- Op Income
- $-3,587,000
- Net Income
- $-4,560,000+25.5%
- EPS
- $-0.56+34.9%
- OCF Growth
- +72.6%
- FCF Growth
- +77.0%
- 52W High
- $2.99
- 52W Low
- $0.66
- 50D MA
- $1.14
- 200D MA
- $1.87
- Beta
- 0.70
- RSI (14)
- 53
- Avg Volume
- 3.50M
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Rocky Mountain Chocolate Factory said fiscal Q4 missed expectations due to a packaged-assortment misstep and other temporary pressures, but management stressed gross-margin improvement, franchise development momentum, and a continuing turnaround plan.· June 2, 2026
- Q4 revenue fell to $6.8 million from $8.9 million, with product sales of $5.1 million and franchise/royalty fees of $1.6 million.
- Net loss widened to $3.4 million, or $(0.38) per share, versus a $2.9 million loss, or $(0.37) per share, a year ago.
- Management said packaged product sales were about $1.5 million below expectations and specialty-market revenue was also cut by nearly $1.5 million after exiting a low-margin customer.
- The company said it achieved its highest gross-margin mix in over 2 years in Q4 and into the just-concluded Q1, and gross margin is now close to the long-term target.
- Franchise development remains active, with 40 area development agreements queued and plans to expand company-owned locations from 4 today toward 5% to 10% of the store base over time.
Total revenue for fiscal Q4 was $6.8 million versus $8.9 million in the prior-year quarter. Product sales were $5.1 million versus $7.1 million, and franchise and royalty fees were $1.6 million versus $1.8 million. Total product and retail gross profit was negative $0.9 million versus negative $0.8 million last year. Total costs and expenses were $9.8 million versus $11.6 million last year. Net loss was $3.4 million, or $(0.38) per share, versus a net loss of $2.9 million, or $(0.37) per share. For the full year, the company ended with cash of $1.2 million versus $700 thousand at the end of fiscal 2025, inventory of $4.1 million versus $4.6 million, and debt of $6.6 million as of 02/28/2026. For forward commentary, management said the reconfigured packaged product lineup should be on shelves by Labor Day, and it expects improved ecommerce shipping economics after negotiating corporate shipping rates; no formal numeric guidance for next quarter or full year was provided.
Jeffrey Geygan framed the quarter as a miss driven mainly by a packaged-assortment decision that did not match guest preferences, saying accountability for the shortfall rests with him. He emphasized that the company has now done consumer research with more than 1,000 participants, is reworking packaging and assortments, and believes the business transformation remains intact. His tone was defensive about the quarter but confident about the operating reset, highlighting store remodel wins, East Coast expansion, app launch plans, and a more disciplined franchise-development strategy.
Carrie Cass said Q4 revenue declined to $6.8 million from $8.9 million, with product sales down to $5.1 million from $7.1 million and franchise/royalty fees down to $1.6 million from $1.8 million. She pointed to negative product and retail gross profit of $0.9 million versus negative $0.8 million last year, while total costs and expenses improved to $9.8 million from $11.6 million, mainly due to efficiencies from moving consumer packaging back to the Durango facility. On the balance sheet, she said year-end cash was $1.2 million, inventory was $4.1 million, and debt outstanding was $6.6 million.
Analysts focused on how the company chose the original packaged assortment, and management said it was based on then-available store-level sales data that favored large pieces and truffles, not a consumer survey. Another question addressed the specialty-market exit; management said most of that customer’s business occurred in Q4 because specialty accounts are typically seasonal, so the revenue impact was concentrated. On franchise development, management said it already has 40 ADAs queued, with 9 from brand-new developers and 31 from existing franchisees, and that the main constraint is finding qualified multi-unit operators and keeping store build-outs within a target of about 6 months.
Management said the business is structurally better than when the transformation began, citing improved margin mix, better production throughput, lower scrap and waste, and upgraded POS analytics. They also pointed to encouraging trends in remodeled and new stores, including Chicago at about $1.1 million in annualized sales, Charleston at about $600 thousand, and Corpus Christi up 10% to 15% after reopening. The team believes the corrected packaged assortment, better ecommerce shipping terms, and continued franchise development could support better sales and profitability ahead.
The quarter showed clear execution problems: packaged sales were about $1.5 million below expectations, a low-margin specialty customer exit reduced revenue by nearly $1.5 million, and ecommerce transition issues and packaging disposal costs added pressure. The company still reported a net loss, negative gross profit in product and retail, and only $1.2 million in cash at year-end against $6.6 million of debt. Management also acknowledged that positive cash flow timing has not been disclosed, and the turnaround remains dependent on finding the right franchise operators and executing the new assortment correctly.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 64.9%
- Shares Outstanding
- 9.44M
- Float Shares
- 6.12M
of shares held by institutions
22 13F filers
Buy/sell ratio 0.00. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Global Value Investment Corp. | 1.80M | ▲ 24.70K |
| Vanguard Group Inc | 97.46K | 0 |
| Comerica Bank | 1.00K | 0 |
| Leo H. Evart, Inc. | 105 | ▲ 105 |
Held by 6 ETFs
Biggest fund positions in RMCF by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Jul 8, 26 | Harper Allen C | other | 107,399 |
| Jun 30, 26 | Harper Allen C | other | 0 |
| Jun 30, 26 | Harper Allen C | other | 0 |
| May 1, 26 | Harper Allen C | sell | 35,900 |
| May 4, 26 | Harper Allen C | sell | 50,000 |
| May 1, 26 | American Heritage Railways, Inc. | sell | 35,900 |
| May 4, 26 | American Heritage Railways, Inc. | sell | 50,000 |
| Feb 19, 26 | Harper Allen C | sell | 2,000 |
| Feb 20, 26 | Harper Allen C | sell | 7,499 |
| Feb 25, 26 | Harper Allen C | sell | 430 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our RMCF coverage
Recent articles, reports, and earnings notes.
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Generate RMCF report →Rocky Mountain Chocolate Factory, Inc. (RMCF) Shareholder/Analyst Call Prepared Remarks Transcript
seekingalpha.com · Aug 3
Rocky Mountain Chocolate Factory Expands Company-Owned Store Portfolio with Acquisition of Chino Hills, California Location
globenewswire.com · Jul 20
Rocky Mountain Chocolate Factory Reports Fiscal First Quarter 2027 Financial Results
globenewswire.com · Jul 14
Rocky Mountain Chocolate Factory Appoints Al Harper as Interim Chief Executive Officer and Principal Executive Officer
globenewswire.com · Jun 30
Rocky Mountain Chocolate Factory Celebrates First-Ever Coast-to-Coast Grand Opening Celebrations with Ribbon Cuttings on Consecutive Days
globenewswire.com · Jun 25
Rocky Mountain Chocolate Factory to Participate in The Small Cap Showcase & WTR Insights Conference on June 9, 2026
globenewswire.com · Jun 8
Rocky Mountain Stock Slips Post Q4 Earnings, Revenue Declines Y/Y
zacks.com · Jun 5
Rocky Mountain Chocolate Factory, Inc. (RMCF) Q4 2026 Earnings Call Transcript
seekingalpha.com · Jun 2
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