Core Viewpoint - Rocky Mountain Chocolate Factory Inc. has appointed Brian Quinn to its Board of Directors, enhancing its leadership with expertise in franchising and brand development [1][2][3]. Company Overview - Rocky Mountain Chocolate Factory, Inc. is a leading franchiser of premium chocolate and confectionary retail stores, known as America's Chocolatier™. The company has been producing a wide range of premium chocolates and confectionery products since 1981 [5]. - The company operates nearly 260 stores across the United States and has several international locations. It is recognized in Entrepreneur's Franchise 500 for 2025 and Franchise Times' Franchise 400 for 2024 [5]. Leadership Appointment - Brian Quinn, the new board member, has extensive experience in brand development, franchise expansion, and operational strategy. He is currently the Chief Development Officer at Sonesta International Hotels, where he significantly contributed to the company's growth from fewer than 100 locations to over 1,000 [2]. - Quinn's previous roles include leadership positions at major hospitality and franchising companies, where he was involved in revenue growth and franchise network development [3]. Strategic Alignment - Quinn's expertise in franchising and market expansion aligns with Rocky Mountain Chocolate's long-term vision to enhance brand presence and stimulate franchise store growth through strategic expansion [2][3].

Company Overview - Rocky Mountain Chocolate Factory Inc. is a leading franchiser of premium chocolate and confectionary retail stores, producing a wide range of products since 1981 [1][5] - The company operates nearly 260 stores across the United States and has several international locations [5] Recognition and Achievements - The company has been recognized in Entrepreneur's Franchise 500® for 2025, highlighting its status as one of the top franchises in the industry [1][5] - This recognition reflects the dedication of the company's team, the trust of franchise partners, and customer loyalty [2] Franchise Ranking Insights - The Franchise 500® ranking is based on a comprehensive evaluation of over 150 data points, including costs, growth, support, brand strength, and financial stability [2][3] - The ranking serves as a competitive measure for franchisors and a research tool for potential franchisees, emphasizing the strength of Rocky Mountain Chocolate Factory as a franchise opportunity [3]

Core Insights - Rocky Mountain Chocolate Factory Inc. has been recognized in Entrepreneur's Franchise 500 for 2025, highlighting its status as a leading franchiser in the premium chocolate and confectionery retail sector [1][2][3] - The recognition reflects the company's operational improvements, strong franchise partnerships, and customer loyalty, emphasizing its commitment to delivering value across its franchise system [2][3] Company Overview - Founded in 1981, Rocky Mountain Chocolate Factory produces a wide range of premium chocolates and gourmet caramel apples, operating nearly 260 stores in the U.S. and several international locations [1][4] - The company is headquartered in Durango, Colorado, and its common stock is listed on the Nasdaq Global Market under the symbol "RMCF" [4] Franchise Ranking Insights - The Franchise 500 ranking is a significant competitive measure for franchisors and serves as a primary research tool for potential franchisees, with Rocky Mountain Chocolate Factory's position reflecting its strength as a franchise opportunity [3] - The ranking is based on a cumulative score derived from over 150 data points, assessing factors such as costs, growth, support, brand strength, and financial stability [2][3]

Core Viewpoint - Rocky Mountain Chocolate Factory, Inc. (RMCF) has experienced a significant decline in stock price following its fiscal third-quarter results, raising investor concerns about its financial performance and future prospects [1] Financial Performance - In the third quarter of fiscal 2025, RMCF reported total revenues of $7.9 million, a 2.5% increase from $7.7 million in the prior-year period [2] - Durango product sales increased by 4.9% to $6.4 million, while Royalty and marketing fees decreased by 11.5% to $1.1 million [2] - Total product and retail gross profit remained flat at $0.7 million, with gross margins slightly compressed from 10.2% to 10% due to higher supply and labor costs [3] - The company posted a net loss of $0.8 million, or $(0.11) per share, consistent with the previous year's net loss [3] - Adjusted EBITDA improved to $41,000 from a loss of $0.3 million in the prior year, indicating progress in operational efficiency [3] Cost Management - RMCF's total costs and expenses increased by 1.4% to $8.6 million, influenced by non-recurring professional expenses [5] - The company maintained stable gross profit despite margin pressures, reflecting effective cost management initiatives [5] Cash Flow and Inventory - RMCF ended the quarter with a cash balance of $1.1 million, down from $2.1 million, due to investments in operational improvements and inventory buildup [6] - Accounts receivable rose to $4.1 million from $2.2 million, and inventory increased to $5.7 million from $4.4 million, aligning with the strategy to support franchisee needs [6] Management Initiatives - Interim CEO Jeff Geygan highlighted the implementation of a new ERP system aimed at improving inventory management, production scheduling, and financial reporting [7] - The company is also focusing on rebranding efforts, including new store designs and updated packaging to enhance customer engagement [7] Market Factors - RMCF attributed margin pressures to increased supply and labor costs, alongside investments in strategic initiatives [8] - E-commerce sales nearly tripled year over year during the holiday season, driven by targeted marketing campaigns [8] Future Outlook - Management indicated that ongoing efforts to streamline operations and improve franchisee support would position the company for long-term growth, although near-term cost pressures remain [9] - RMCF secured a three-year $6 million credit facility to support investments in equipment and growth initiatives [10] - The company plans to open two new stores and a kiosk in Chicago, Charleston, and Brandon, demonstrating its commitment to expanding its franchise footprint [10]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 increased to $7.9 million compared to $7.7 million in the same period last year, representing a growth of approximately 2.6% [29] - Product sales rose to $6.4 million from $6.1 million year-over-year, while franchise and royalty fees decreased to $1.1 million from $1.2 million [29] - Total costs and expenses increased to $8.6 million from $8.5 million, driven by non-recurring professional expenses [31] - Net loss for the quarter was $0.8 million or negative $0.10 per share, an improvement from a net loss of $0.12 per share in the previous year [31] - EBITDA improved to a positive $41,000 compared to a negative $0.3 million a year ago [31] Business Line Data and Key Metrics Changes - The company fulfilled nearly 100% of franchisee and specialty market demand during the holiday season, a significant improvement from the previous year [13] - The e-commerce business, including RMCF and Amazon.com, saw sales nearly triple during the holiday months compared to last year [17] Market Data and Key Metrics Changes - The company ended the fiscal third quarter with a cash balance of $1.1 million, down from $2.1 million at the end of February 2024 [32] - Accounts receivable increased to $4.1 million from $2.2 million, reflecting increased demand across all channels [34] - Total inventories rose to $5.7 million from $4.3 million, indicating a strategic buildup to meet franchisee needs during the holiday season [34] Company Strategy and Development Direction - The company is focused on improving liquidity, revitalizing its franchise network, and executing key operational priorities as part of a transformational process [7] - New store openings are planned in Chicago, Charleston, and Brandon, with a focus on enhancing the franchise model and improving average unit volume [8][10] - A new ERP system was launched to improve cost management and decision-making through better data analytics [14][15] - The company is also expanding its loyalty program and utilizing customer engagement applications to drive sales [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing gross and operating margin pressures but believes these issues are transitory and anticipates improved results in the coming quarters [24] - The company is committed to continuous improvement and strategic investments to drive revenue growth and profitability [26][27] Other Important Information - The company secured a $6 million credit facility to support operations and growth initiatives [23] - Strategic hires were made to strengthen the executive management team, including new VPs for Franchise Business Support and Marketing [21][22] Q&A Session Summary Question: What kind of benefits do you expect to drive from the new ERP system? - The new ERP system will provide timely, accurate data and analytics to assist in managerial decisions aimed at driving profitability [38] Question: Can you provide an update on the rebranding initiative and its potential impact on franchisee interest? - Franchisee enthusiasm is high, with existing franchisees willing to open new stores, indicating positive reception of the new branding and store design [40] Question: What progress has been made on new store openings and targeted geographies? - There is a robust pipeline for new store openings, with three stores announced so far, and efforts are ongoing to create more opportunities [42]

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 November 30, 2024 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 Ch ...

Core Viewpoint - Rocky Mountain Chocolate Factory Inc. is focused on strengthening its foundation for long-term success through improved liquidity, executive team rebuilding, franchise network expansion, and a return to sustainable growth and profitability [3][5]. Financial Performance - Total revenue for the third quarter of 2025 increased to $7.9 million compared to $7.7 million in the year-ago quarter [8]. - Total product and retail gross profit remained flat at $0.7 million, with a gross margin of 10.0%, down from 10.2% in the previous year due to higher supply and labor costs [8]. - Total costs and expenses rose to $8.6 million from $8.5 million in the year-ago quarter [8]. - The net loss for the third quarter was $0.8 million or $(0.11) per share, compared to a net loss of $0.8 million or $(0.12) per share in the year-ago quarter [8]. - Adjusted EBITDA improved to $41,000 from a loss of $0.3 million in the year-ago period [8]. Strategic Initiatives - The company secured a three-year $6 million credit agreement to replace its prior facility and fund growth initiatives [4]. - Key hires were made in franchise support and marketing, and two prominent executives were added to the Board [4]. - Plans for two new stores and a kiosk location were announced across three U.S. markets [4]. - A new ERP system was launched in January to enhance operational visibility and decision-making [5]. Market Position - Rocky Mountain Chocolate Factory operates nearly 260 stores across the U.S. and has several international locations, ranking among Entrepreneur's Franchise 500 and Franchise Times' Franchise 400 for 2024 [10].

DURANGO, Colo., Jan. 02, 2025 (GLOBE NEWSWIRE) -- Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) (the “Company”, “we”, or “RMCF”), an international franchisor and producer of premium chocolates and other confectionery products, including gourmet caramel apples, will host a conference call on Tuesday, January 14, 2025 at 5:00 p.m. Eastern time to discuss its fiscal third quarter 2025 results. The Company’s results will be reported in a press release prior to the call. The RMCF management team will host ...

DURANGO, Colo., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) (the “Company”, “we”, or “RMCF”), an international franchisor and producer of premium chocolates and other confectionery products, including gourmet caramel apples, today announced the opening of two new stores and one kiosk location across three U.S. markets. RMCF is pleased to highlight the success and commitment of its franchisees, who are bringing the Rocky Mountain Chocolate Factory experience to Chic ...

DURANGO, Colo., Oct. 15, 2024 (GLOBE NEWSWIRE) -- Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) (the "Company", "we", or "RMCF"), an international franchisor and producer of premium chocolates and other confectionery products including gourmet caramel apples, is reporting financial and operating results for its fiscal second quarter ended August 31, 2024. "We are pleased with our progress this quarter as we begin executing our multi-year strategic plan," said Jeff Geygan, Interim CEO of RMCF. "We hav ...