Core Viewpoint - Rocky Mountain Chocolate Factory Inc. has acquired its Camarillo, California store from a franchisee, enhancing its presence in Southern California and aligning with its growth strategy [1][3]. Company Acquisition - The Camarillo store, operational since October 1995 and managed by Kim LaMonica since 1996, has a loyal customer base and is a community staple [2]. - This acquisition allows RMCF to integrate the store into its portfolio of Company-owned locations, aiming to enhance the customer experience with a redesigned store [2][3]. Strategic Importance - The Camarillo store is considered a cornerstone of RMCF's brand presence in Southern California, reflecting the appeal of its products in affluent communities [3]. - The acquisition supports RMCF's strategy to operate select stores for innovation, retail best practices, and profitability enhancement [3][4]. Growth Strategy - RMCF plans to leverage its Company-owned stores to launch new products, improve customer experiences, and achieve operational excellence, benefiting the broader franchise system [4]. - The company is focused on selectively expanding its retail footprint in Southern California and other attractive markets [4]. Company Overview - Rocky Mountain Chocolate Factory, Inc. is a leading franchiser of premium chocolate and confectionery retail stores, producing a wide range of products since 1981 [5]. - The company operates over 250 stores across the United States and has been recognized in Entrepreneur's Franchise 500 for 2025 and Franchise Times' Franchise 400 for 2024 [5].

Pricing Strategy - Rocky Mountain Chocolate Factory 正在通过动态定价来应对可可价格的剧烈波动 [1] - 公司每季度调整松露和巧克力椒盐脆饼的价格 [1]

Rocky Mountain Chocolate Factory (RMCF) FY 2025 Annual General Meeting August 12, 2025 11:00 AM ET Speaker0Welcome to the twenty twenty five Annual Meeting of Stockholders for Rocky Mountain Chocolate Factory, Inc. I would now like to introduce Mel Keating, Chairman of the Board, and turn the meeting over to him. Please go ahead.Speaker1Good morning, ladies and gentlemen. Welcome to the Annual Meeting of Stockholders of Rocky Mountain Chocolate Factory. We are pleased that you could join us today. My name i ...

Core Viewpoint - Rocky Mountain Chocolate Factory, Inc. (RMCF) has shown mixed financial performance, with a notable shift in revenue sources and improved profitability metrics, indicating a strategic transformation within the company [1][2][3]. Financial Performance - For the first quarter of fiscal 2026, RMCF reported total revenues of $6.37 million, nearly unchanged from $6.41 million a year ago [2] - Product sales decreased by 10.6% to $4.7 million from $5.3 million, while franchise and royalty fees increased by 46.7% to $1.7 million from $1.1 million [2] - Gross profit from product and retail operations improved to $0.3 million from a loss of $0.3 million, driven by better pricing and production efficiencies [2] - Total costs and expenses fell by 18.9% to $6.5 million from $8 million, mainly due to reduced general and administrative costs [2] - The net loss narrowed to $0.3 million or $(0.04) per share from a loss of $1.7 million or $(0.26) per share last year [3] - EBITDA turned positive at $0.2 million from a loss of $1.4 million, marking the first positive EBITDA quarter in several years [3] Operational Initiatives and Strategic Execution - Management introduced a flat monthly freight fee for franchisees to encourage frequent ordering, replacing a previous structure that deterred regular restocking [4] - Pricing adjustments made in March and June have improved gross margins [4] - A new Point-of-Sale (POS) system has been adopted in over 100 stores, enhancing pricing transparency and enabling dynamic pricing strategies [4] - Enterprise Resource Planning and POS systems provide visibility into store-level operations, allowing for better assessment of manufacturing efficiency and franchisee ordering patterns [5] Management Commentary - Interim CEO Jeff Geygan noted a transition from restructuring to focused execution, highlighting alignment across teams and franchisees [6] - CFO Carrie Cass emphasized ongoing discipline in selling, general, and administrative costs as key to driving further EBITDA expansion [7] Outlook and Guidance - RMCF did not provide formal forward-looking financial guidance but expressed confidence in sustaining operational momentum through fiscal 2026 [8] - Management cited improvements in cost structure, data analytics, and franchisee performance as foundational to achieving profitability [8] Funding and Financial Position - The company has $0.9 million in cash and approximately $6 million in outstanding debt [9] - Discussions regarding capital raising are ongoing, but there are no immediate plans for dilutive financing [9] Other Developments - A new store opened in Charleston, SC, showcasing updated branding and layout, with construction planned for a flagship location in downtown Chicago [10] - A broad brand refresh is underway, including updated packaging and a redesigned e-commerce platform aimed at enhancing online conversions [11] - RMCF is pursuing store expansion with existing multi-unit franchisees and new entrants, aiming to increase the average number of stores per franchisee from 1.34 [12]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $6.4 million, essentially flat compared to the prior period [21] - Product sales decreased to $4.7 million from $5.3 million last year, while franchise and royalty fees increased to $1.7 million from $1.1 million [21] - Total product and retail gross profit improved to $300,000 from a negative $300,000, driven by pricing adjustments and operational efficiencies [22] - Costs and expenses decreased to $6.5 million from $8 million last year, primarily due to lower G&A costs [22] - Net loss was $300,000 or negative $0.04 per share, compared to a net loss of $1.7 million or negative $0.26 per share [22] - EBITDA for the quarter was $2 million, compared to a negative $1.4 million last year [22] Business Line Data and Key Metrics Changes - The company waived all freight charges for franchisees to drive volume and improve product freshness [7] - A flat monthly fee program for freight delivery was implemented to encourage more frequent store orders [7] - The adoption of the new POS system accelerated, enhancing visibility into operations and decision-making [9] Market Data and Key Metrics Changes - The company opened a new store in Charleston, South Carolina, featuring a refreshed brand identity [11] - Construction is expected to begin shortly on a new location in Downtown Chicago, targeting an opening ahead of the holiday season [11] Company Strategy and Development Direction - The company is focused on stabilizing the business and transitioning from a rebuilding mode to an execution mode [5] - A new consumer packaging and e-commerce platform are set to launch, aimed at enhancing brand presentation and online conversions [17] - The company is actively building a development pipeline for new units while seeking capable franchise operators [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made in operational improvements and the potential for continued margin improvement [20] - The company believes it is in a better position to execute its strategy than in many years, with a focus on generating profit and returning to growth [20] Other Important Information - The company hired a new VP of operations with significant experience in manufacturing and logistics [10] - The refreshed website will include a section for new franchisees, making it more intuitive for potential operators [19] Q&A Session Summary Question: What early indicators are being watched to evaluate the impact of waived freight charges? - Management noted that order frequency has improved, encouraging franchisees to order more frequently [25] Question: What processes or decisions are expected to change with stabilized ERP data? - Management highlighted that the ERP data provides insights into manufacturing efficiencies and profitability, which will inform decision-making across departments [26] Question: How does the online strategy differ with the upcoming e-commerce relaunch? - Management emphasized the improved user interface and contemporary design of the new website, expecting positive results from the refresh [27][28] Question: What operational levers are expected to drive continued EBITDA expansion? - Management attributed positive EBITDA to improved pricing, SG&A discipline, and factory efficiencies, expecting these to continue [29] Question: What are the capital needs for expansion and improvements? - Management indicated that discussions regarding capital needs are ongoing, with no immediate plans to raise capital [35][36] Question: How is the growth strategy for new franchisees being developed? - Management stated that existing franchisees are prioritized for expansion, and new franchisees are being sourced through a network of referrals [43]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $6.4 million, essentially flat compared to the prior period [23] - Product sales decreased to $4.7 million from $5.3 million year-over-year, while franchise and royalty fees increased to $1.7 million from $1.1 million [23] - Total product and retail gross profit improved to $300,000 from a negative $300,000, driven by pricing adjustments and operational efficiencies [24] - Costs and expenses decreased to $6.5 million from $8 million year-over-year, primarily due to lower general and administrative costs [24] - Net loss was $300,000 or negative $0.04 per share, compared to a net loss of $1.7 million or negative $0.26 per share [24] - EBITDA for the quarter was $2 million, compared to a negative $1.4 million last year [24] Business Line Data and Key Metrics Changes - The company waived all freight charges for franchisees to drive volume and improve product freshness [8] - A flat monthly fee program for freight delivery was implemented to encourage more frequent store orders [8] - The adoption of the new POS system accelerated, enhancing visibility into operations and decision-making [11] Market Data and Key Metrics Changes - The company opened a new store in Charleston, South Carolina, featuring a refreshed brand identity [13] - Construction is expected to begin shortly on a new location in Downtown Chicago, targeting an opening ahead of the holiday season [13] Company Strategy and Development Direction - The company is focused on stabilizing the business and transitioning from a rebuilding mode to an execution mode [5][6] - A new consumer packaging and e-commerce platform are set to launch, aimed at enhancing brand presentation and online conversions [18] - The company is actively building a development pipeline for new units while seeking capable franchise operators [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made and the discipline applied across the business [7] - The first quarter demonstrated foundational investments and operational improvements beginning to produce desired results, with expectations for continued growth throughout the year [22] - The company believes it is in a better position to execute its strategy than in many years, aiming for sustainable growth and long-term value creation [22] Other Important Information - The company hired a new VP of operations with significant experience in manufacturing and logistics [12] - The refreshed website will include a section for new franchisees, making it more intuitive for potential operators [21] Q&A Session Summary Question: What early indicators are being watched to evaluate the impact of the flat freight charge? - The company is monitoring order frequency, which has improved since waiving the fee, encouraging franchisees to order more frequently [28] Question: What processes or decisions are expected to change with the ERP data stabilization? - The ERP data provides insights into manufacturing efficiencies and profitability, which will inform decision-making across departments [29] Question: How does the online strategy differ with the e-commerce relaunch? - The new website features a contemporary user interface and is positioned as a core brand experience, with results expected to be reported in the future [30][31] Question: What operational levers are expected to drive continued EBITDA expansion? - Continued improvements in pricing, SG&A discipline, and factory efficiencies are anticipated to drive EBITDA growth [32] Question: What are the capital needs for expansion? - Currently, the company is not planning to raise capital but is in ongoing discussions with the board regarding future needs [39][40] Question: How is the growth strategy for new franchisees being developed? - The company is focusing on existing franchisees for expansion and employing business consultants to improve store performance [46][47]

Overview and Management Commentary [Management Commentary](index=1&type=section&id=Management%20Commentary) Interim CEO Jeff Geygan described Fiscal 2025 as the start of a "transformative era" for the company, initiating restructuring, cultural rebuilding, operational discipline, and system modernization - Fiscal 2025 marked the beginning of a major transformation focused on restructuring the business, rebuilding culture, restoring operational discipline, and modernizing core systems[2](index=2&type=chunk) - Key changes included bringing consumer packaging back in-house, implementing a new point-of-sale system, overhauling the e-commerce platform, and realigning product pricing[2](index=2&type=chunk) - With operational changes effective March 1, 2025, management believes the company has been stabilized and is now focused on disciplined, profitable growth for fiscal 2026[2](index=2&type=chunk) Operational Highlights and Strategic Initiatives [Operational and Franchise Network Improvements](index=1&type=section&id=Operational%20and%20Franchise%20Network%20Improvements) The company resolved key operational challenges, strengthened its franchise network by retiring co-packing, exiting unprofitable markets, and implementing a new pricing model - Retired the company's co-packing operations in Salt Lake City in February 2025[5](index=5&type=chunk) - Adjusted or exited unprofitable Specialty Market relationships during fiscal 2025[5](index=5&type=chunk) - A new franchise product pricing model was implemented on March 1, 2025, to address systemic margin pressures for franchisees[5](index=5&type=chunk) [Brand Modernization and Digital Enhancements](index=1&type=section&id=Brand%20Modernization%20and%20Digital%20Enhancements) The company is advancing brand modernization with new store designs, a Charleston opening, a Chicago flagship, systemwide signage, and a redesigned website launching July 2025 - A new store opened in Charleston, South Carolina on June 3, 2025, featuring the refreshed branding and design[5](index=5&type=chunk) - Construction is planned for a flagship location in downtown Chicago, with an expected opening before the holiday season[5](index=5&type=chunk) - A redesigned website is expected to launch in July 2025, followed by updated packaging aligned with the new brand identity in early August 2025[7](index=7&type=chunk) Financial Performance [Fiscal Fourth Quarter 2025 Financial Results](index=2&type=section&id=Fiscal%20Fourth%20Quarter%202025%20Financial%20Results) Q4 FY2025 revenue increased to $8.9 million, but gross loss widened to $(0.8) million due to higher raw material costs, leading to a net loss of $(2.9) million Q4 FY2025 vs. Q4 FY2024 Financial Highlights (in millions, except per share data) | Metric | Q4 FY2025 | Q4 FY2024 | | :--- | :--- | :--- | | **Total Revenue** | $8.9 | $7.3 | | **Total Product and Retail Gross Profit** | $(0.8) | $0.1 | | **Total Costs and Expenses** | $11.6 | $8.8 | | **Net Loss from Continuing Operations** | $(2.9) | $(1.6) | | **Loss per Share from Continuing Operations** | $(0.37) | $(0.25) | - The decrease in gross profit was primarily due to higher raw material costs[13](index=13&type=chunk) - The increase in total costs and expenses was mainly attributed to investments in marketing and administrative infrastructure related to the brand refresh and prototype store rollout[13](index=13&type=chunk) [Fiscal Year 2025 Financial Results](index=3&type=section&id=Fiscal%20Year%202025%20Financial%20Results) FY2025 revenue grew to $29.6 million, but gross profit significantly declined to $0.1 million due to inflationary pressures, resulting in an expanded net loss of $(6.1) million Fiscal Year 2025 vs. 2024 Financial Highlights (in millions, except per share data) | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | **Total Revenue** | $29.6 | $28.0 | | **Total Product and Retail Gross Profit** | $0.1 | $1.4 | | **Total Costs and Expenses** | $35.5 | $32.9 | | **Net Loss from Continuing Operations** | $(6.1) | $(4.9) | | **Loss per Share from Continuing Operations** | $(0.86) | $(0.77) | - The decrease in annual gross profit was primarily due to a sharp increase in the cost of cocoa, other inflationary pressures, higher overhead costs, and reduced production volume[13](index=13&type=chunk) Financial Statements [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of February 28, 2025, total assets increased to $21.2 million, but total liabilities significantly rose to $14.2 million, decreasing stockholders' equity to $7.0 million Selected Balance Sheet Data (in thousands) | Account | Feb 28, 2025 | Feb 29, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $720 | $2,082 | | Total Assets | $21,175 | $20,577 | | Total Liabilities | $14,200 | $9,941 | | Total stockholders' equity | $6,975 | $10,636 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) FY2025 total revenues increased to $29.6 million, but rising costs led to a wider loss from operations of $(5.9) million and a net loss of $(6.1) million Fiscal Year Statement of Operations Summary (in thousands) | Account | Year Ended Feb 28, 2025 | Year Ended Feb 28, 2024 | | :--- | :--- | :--- | | Total Revenue | $29,579 | $27,950 | | Total costs and expenses | $35,521 | $32,852 | | Loss from Operations | $(5,942) | $(4,902) | | Loss from Continuing Operations | $(6,122) | $(4,875) | | Net Loss | $(6,122) | $(4,172) | Conference Call and Company Information [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) The company will host a conference call on June 18, 2025, at 9:00 a.m. Eastern time to discuss its financial results - A conference call to discuss financial results is scheduled for June 18, 2025, at 9:00 a.m. Eastern time[9](index=9&type=chunk) [About Rocky Mountain Chocolate Factory, Inc.](index=3&type=section&id=About%20Rocky%20Mountain%20Chocolate%20Factory%2C%20Inc.) Rocky Mountain Chocolate Factory, Inc. is a leading franchiser of premium chocolate and confectionery retail stores, operating nearly 260 locations - The company is a leading franchiser of premium chocolate stores, operating nearly 260 locations across the United States and internationally[11](index=11&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section provides a standard disclaimer for forward-looking statements, highlighting inherent risks and uncertainties that could cause actual results to differ - The press release includes forward-looking statements that are subject to various risks and uncertainties which could cause actual results to differ materially from expectations[12](index=12&type=chunk) - Key risks include inflationary impacts, changes in the business environment, seasonality, raw material costs, and competition[14](index=14&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to _______ Commission File Number: 001-36865 Rocky Mountain Chocolate Factory, Inc. (Exact Name of Registrant as Specified in its Charter ...

Core Insights - Rocky Mountain Chocolate Factory, Inc. is focused on rebuilding its business into a disciplined and profitable entity through various strategic initiatives aimed at enhancing operational efficiency and franchisee performance [2][3] Financial Performance - Total revenue for the first quarter of fiscal 2026 was $6.4 million, remaining essentially flat compared to the same quarter last year [5] - Gross profit from product and retail was $0.3 million, an improvement from a loss of $0.3 million in the year-ago quarter, attributed to better pricing and production efficiencies [5] - Total costs and expenses decreased to $6.5 million from $8.0 million in the previous year, primarily due to improved operating efficiencies and reduced general and administrative costs [5] - The net loss for the quarter was $0.3 million or $(0.04) per share, compared to a net loss of $1.7 million or $(0.26) per share in the same quarter last year [5] - EBITDA for the quarter was $0.2 million, a significant improvement from $(1.4) million in the year-ago quarter [5] Strategic Initiatives - The company has implemented a simplified freight program to enhance inventory freshness and realigned pricing to better reflect product value [2] - A new Point of Sale (POS) and Enterprise Resource Planning (ERP) system is being adopted to improve visibility and accountability across the franchise network [2] - A brand refresh, including new packaging and a redesigned e-commerce platform, is set to roll out systemwide this summer [3] Market Expansion - The Charleston location has shown promising performance in a previously untapped market, providing insights for future store openings [3] - A new store in Chicago is expected to open before the holiday season, with several leases currently under negotiation [3] Company Overview - Rocky Mountain Chocolate Factory, Inc. is a leading franchiser of premium chocolate and confectionery retail stores, operating nearly 260 locations across the United States and several international sites [7]

Core Insights - Rocky Mountain Chocolate Factory Inc. has appointed Luis Burgos as Vice President of Operations, bringing over 29 years of experience in manufacturing and distribution operations [1][2][4] Company Overview - Rocky Mountain Chocolate Factory is a leading franchiser of premium chocolate and confectionary retail stores, known as America's Chocolatier™ since 1981 [5] - The company operates nearly 260 stores across the United States and has several international locations, with its stock listed on the Nasdaq under the symbol "RMCF" [5] Leadership Background - Luis Burgos has held senior leadership roles at various companies, including U.S. Cotton and Kimberly-Clark, overseeing both single-site and multi-site operations [2][3] - His expertise includes applying Lean and Six Sigma tools to enhance process performance and productivity [3] - Burgos holds an MBA in International Business and a Bachelor of Science in Industrial and Systems Engineering, and is fluent in English and Spanish [4] Strategic Importance - The appointment of Burgos is seen as crucial for the company's operational performance and transformation, as stated by Interim CEO Jeff Geygan [4] - His experience in expanding manufacturing capabilities and improving product quality is expected to support the company's growth and operational efficiency [3][4]