Core Insights - The Zacks Equity Research team has highlighted several stocks, including AbbVie Inc., RTX Corp., International Business Machines Corp., EVI Industries, Inc., and Rocky Mountain Chocolate Factory, Inc. in their Analyst Blog [1][2] AbbVie Inc. (ABBV) - AbbVie shares have increased by 13.8% over the past six months, while the Zacks Large Cap Pharmaceuticals industry has gained 29.5% [4] - The company exceeded fourth-quarter estimates for both earnings and sales, successfully managing the loss of exclusivity for Humira by launching new immunology drugs, Skyrizi and Rinvoq, which are performing well [4][5] - AbbVie's neuroscience portfolio is also contributing to revenue growth, with robust net sales growth reported in 2025, marking the second full year post-Humira's loss of exclusivity [5] RTX Corp. (RTX) - RTX shares have outperformed the Zacks Aerospace - Defense industry, gaining 29.2% compared to 11.7% over the past six months [6] - The company reported fourth-quarter earnings and revenues that surpassed estimates, benefiting from strong orders for defense products from the Pentagon and foreign allies [6][7] - RTX's backlog reached $268 billion as of December 31, 2025, supported by improving global commercial air traffic [8] International Business Machines Corp. (IBM) - IBM shares have risen by 10.8% over the past six months, while the Zacks Computer - Integrated Systems industry has gained 61.4% [9] - The company reported strong fourth-quarter results, with adjusted earnings and revenues exceeding estimates, driven by growth in hybrid cloud, AI-powered automation, and enterprise consulting [9][10] - IBM is focusing on its Watsonx platform for AI capabilities and quantum technology, although it faces challenges from traditional business weaknesses and high debt levels [11] EVI Industries, Inc. (EVI) - EVI shares have outperformed the Zacks Industrial Services industry, increasing by 24.4% over the past year [12] - The company reported a 24% revenue increase in the December quarter and a 20% rise for the first six months of FY26, with gross margin expanding to approximately 31% [12][13] - Despite solid revenue growth, net income has dipped due to rising SG&A expenses, and the company faces increased working capital demands [14] Rocky Mountain Chocolate Factory, Inc. (RMCF) - Rocky Mountain shares have outperformed the Zacks Retail - Restaurants industry, gaining 51.1% over the past year [15] - The company is focusing on margin improvement, with manufacturing gross margin rising to 21.4% from 10%, and EBITDA turning positive [15][16] - However, Rocky Mountain faces liquidity risks and high-cost debt, which could impact its operational stability [17]

Rocky Mountain Chocolate Factory, Inc. (RMCF) , recently upgraded to a “Neutral” from “Underperform” and repositioned around a margin-first strategy, is beginning to show tangible results from a deliberate operational reset. After navigating unprecedented cocoa price volatility and exiting structurally low-margin revenue streams, management is reframing the business around disciplined gross margin execution, simplified production and franchise quality rather than top-line volume. Cocoa costs have stabilized ...

Table of Contents As filed with the Securities and Exchange Commission on February 4, 2026 Registration No. 333-292926 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 1 TO FORM S‑1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Rocky Mountain Chocolate Factory, Inc. (Exact name of Registrant as specified in its charter) | Delaware | 2060 | 47-1535633 | | --- | --- | --- | | (State or other jurisdiction of | (Primary Standard Industrial | (I.R.S. Employer | | in ...

Table of Contents As filed with the Securities and Exchange Commission on January 23, 2026 Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S‑1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Rocky Mountain Chocolate Factory, Inc. (Exact name of Registrant as specified in its charter) | Delaware | 2060 | 47-1535633 | | --- | --- | --- | | (State or other jurisdiction of | (Primary Standard Industrial | (I.R.S. Employer | | incorporation or organizati ...

Core Viewpoint - Rocky Mountain Chocolate Factory, Inc. (RMCF) is undergoing a transformation focused on profitability and long-term value creation, despite a decline in revenue due to strategic exits from lower-margin channels [6][7]. Financial Performance Overview - For Q3 of fiscal 2026, RMCF reported total revenues of $7.5 million, a 4.4% decrease from $7.9 million in the same quarter last year [2]. - The net loss narrowed to $0.2 million, or $0.02 per share, compared to a loss of $0.8 million, or $0.11 per share, in the prior-year quarter [3]. - Total product and retail gross profit increased to $1.4 million from $0.7 million year-over-year, driven by pricing actions and improved efficiencies [3]. Key Business Metrics - Gross manufacturing margin improved to 21.4% from 10% in the same quarter last year [4]. - Total costs and expenses decreased by 13.2% to $7.5 million from $8.6 million a year ago [4]. - The addition of a second production shift is expected to unlock annual cost savings of $500,000 to $1 million [4]. Management Commentary - Management emphasized the quarter as an inflection point, focusing on profitability over revenue growth [6]. - Progress in franchise development and digital marketing efforts is seen as a key driver for future growth [6]. Factors Influencing Financial Results - Revenue decline was attributed to the exit from lower-margin revenue streams, viewed as necessary for resetting the economic foundation [7]. - Cocoa price volatility impacted results, but recent declines and tariff eliminations are expected to provide margin support [8]. Guidance and Outlook - RMCF did not provide formal quantitative guidance but expects continued margin improvement and gradual return to profitability [10]. - Near-term growth is anticipated from improving same-store sales and expanding e-commerce capabilities rather than rapid unit expansion [10]. Other Developments - RMCF completed a $2.7 million equity capital raise, using $1.2 million to pay down debt and retaining $1.5 million for working capital [11]. - An area development agreement with four franchisees will bring 34 new stores over the next four to five years [11]. - Technology initiatives are being rolled out, including expanded point-of-sale systems and a loyalty program expected to launch soon [12].

Company Overview - Rocky Mountain Chocolate Factory has been recognized as one of the top 500 franchises in Entrepreneur's Franchise 500® for 2026, ranking No. 415 due to its performance in unit growth, financial strength, operational support, and brand power [1][3] - The company has been producing premium chocolates and confectionery products since 1981 and operates over 250 stores across the United States, with additional international locations [4] Industry Insights - The Franchise 500® has been a key resource for potential franchisees for 47 years, serving as a competitive measure for franchisors and a research tool for prospective franchisees [2][3] - The ranking is based on a cumulative score derived from over 150 data points, including costs, size, franchisee support, brand strength, and financial stability [2]

Core Insights - Rocky Mountain Chocolate Factory has been recognized as one of the top 500 franchises in Entrepreneur's Franchise 500® for 2026, ranking No. 415 due to its performance in unit growth, financial strength, operational support, and brand power [1][3]. 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 [4]. - The company operates over 250 stores across the United States and has several international locations, with its common stock listed on the Nasdaq Capital Market under the symbol "RMCF" [4]. Franchise Ranking Significance - The Franchise 500® has been a key measure of franchise excellence for 47 years, serving as a resource for potential franchisees and a competitive benchmark for franchisors [2][3]. - The ranking is based on a comprehensive analysis of over 150 data points, including costs, growth, franchisee support, brand strength, and financial stability [2].

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Financial Data and Key Metrics Changes - Total revenue for Q3 2026 was $7.5 million, down from $7.9 million in the prior year, reflecting the company's exit from low-margin revenue streams [20] - Total product and retail gross profit increased to $1.4 million, compared to $0.7 million in the same quarter last year, driven by pricing actions and improved product mix [20] - Net loss for the quarter was $0.2 million, or negative $0.02 per share, compared to a net loss of $0.8 million, or negative $0.11 per share in the prior year [21] - EBITDA improved to $0.4 million in Q3 2026 from negative $0.4 million in the same quarter last year [21] Business Line Data and Key Metrics Changes - The company continued to exit lower-margin specialty and wholesale revenue streams, leading to a modest year-over-year decline in total revenue but significant improvement in gross profit margin, which reached 21.4% compared to 10% in the prior year [5][20] - The company implemented targeted price adjustments across its four core franchise categories, contributing to margin expansion [6][7] Market Data and Key Metrics Changes - The company is experiencing momentum in franchise development, with two new stores under construction and 34 stores under area development agreements, indicating strong interest from financially sophisticated operators [4][9] - The company is rationalizing its current store base by closing underperforming locations, which negatively impact brand image [9] Company Strategy and Development Direction - The company is focused on a margin-first transformation strategy, prioritizing profitability and long-term value creation over lower-quality revenue [3] - The strategy includes improving product mix, simplifying the SKU portfolio, and enhancing operational and technology capabilities to support long-term growth [3][4] - Franchise development is a key strategic revenue pillar, with a disciplined approach to expanding into existing and new markets while improving average unit performance [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for margin expansion due to lower cocoa prices and effective purchasing strategies [8][28] - The company aims to return to profitability through disciplined execution and support for franchisees, while also investing in technology initiatives to enhance customer experience and operational efficiency [18][16] Other Important Information - The company completed a $2.7 million equity capital raise, allowing it to pay down $1.2 million of debt and retain $1.5 million in additional working capital [16] - The company is advancing its digital initiatives, including a new POS system and a loyalty program expected to roll out in the first half of the year [15][18] Q&A Session Summary Question: Can you talk about the 34 new stores and the pace of deployment? - The 34 area development agreements are across four franchisees, with a measured rollout expected to accelerate in later years [24] Question: How have you lined up the financing for these stores? - Existing owners have liquidity and are well-capitalized, minimizing the need for significant debt [25] Question: What is the expected impact of cocoa prices on margins? - Cocoa prices have come down, and the company has locked in favorable pricing for a portion of its expected production, which is expected to provide a margin tailwind [28] Question: Where are you in the journey of recapping the balance sheet? - The next steps include reducing debt and investing in the company, primarily from free cash flow [30] Question: When do you expect the accelerated franchise effort to begin affecting the top line? - New stores take roughly three years to mature, with a lag from lease signing to full productivity [35] Question: What are the biggest obstacles to growing the business? - Execution is the primary challenge, with a focus on profitable growth through the franchise system [39]

Financial Data and Key Metrics Changes - Total revenue for Q3 2026 was $7.5 million, down from $7.9 million in the prior year, reflecting the company's exit from low-margin revenue streams [19] - Total product and retail gross profit increased to $1.4 million, compared to $0.7 million in the same quarter last year, driven by pricing actions and improved product mix [19] - Net loss for the quarter was $0.2 million, or negative $0.02 per share, compared to a net loss of $0.8 million, or negative $0.11 per share in the prior year [20] - EBITDA improved to $0.4 million in Q3 2026 from negative $0.4 million in the same quarter last year [20] Business Line Data and Key Metrics Changes - The company continued to exit lower-margin specialty and wholesale revenue streams, leading to a modest year-over-year decline in total revenue but significant improvement in gross profit and margin [5][19] - Gross manufacturing margin for the quarter was reported at 21.4%, compared to 10% for the same quarter of the prior year [5] Market Data and Key Metrics Changes - The company is experiencing momentum in franchise development, with two new stores under construction and 34 stores under area development agreements [4][8] - The franchise development team is actively working on building a backlog of new franchise opportunities, supported by improved digital marketing efforts [4][10] Company Strategy and Development Direction - The company is focused on a margin-first transformation strategy, prioritizing profitability and long-term value creation over lower-quality revenue [3] - The strategy includes improving product mix, implementing price adjustments, simplifying the SKU portfolio, and enhancing operational capabilities [3][6] - Franchise development is a key strategic revenue pillar, with a disciplined approach to expanding into both existing and new markets [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for margin expansion due to lower input costs, including the elimination of a 10% tariff on cocoa [8] - The company believes it is at an important inflection point in its transformation, with improved gross profit and margin indicating progress towards sustainable long-term growth [17][18] Other Important Information - The company completed a $2.7 million equity capital raise, allowing it to pay down $1.2 million of debt and retain $1.5 million in additional working capital [16] - The company is advancing its digital initiatives, including the launch of DoorDash Storefronts and a new POS system to enhance data visibility and customer engagement [14][15] Q&A Session Summary Question: Can you talk about the 34 new stores and the pace of deployment? - The 34 area development agreements are across four unique franchisees, with a measured rollout expected to accelerate in later years [22][23] Question: How have you lined up the financing for these stores? - Existing owners have liquidity and debt facilities lined up, minimizing the need for significant debt to build a store [23] Question: What is the expected impact of cocoa price normalization on margins? - Cocoa prices have come down, and the company has locked in favorable pricing for a portion of its expected production, which is expected to provide a margin tailwind [24][25] Question: When do you expect the accelerated franchise effort to begin affecting the top line? - It is expected that from lease signing to store opening takes roughly six months, with a store taking about three years to reach maturity [27][28] Question: Do you expect dramatic revenue growth in 2026? - The company does not expect dramatic revenue growth from new stores in 2026 but sees opportunities for increased sales through existing stores and e-commerce channels [29][30] Question: What are the biggest obstacles facing the company in growing the business? - The primary challenge is execution, with a focus on profitable growth and improving top-line performance through the franchise system [30][31]