Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $8.9 million, up from $7.3 million in the same period last year, while full year revenue increased to $29.6 million from $28 million [24][26] - Product sales rose to $7.1 million from $5.6 million year-over-year, but total product and retail gross profit was a negative $800,000 compared to a positive $100,000 last year, primarily due to higher raw material costs [24][26] - Net loss from continuing operations was $2.9 million or negative $0.37 per share, compared to a loss of $1.6 million or negative $0.25 per share in the previous year [25][27] Business Line Data and Key Metrics Changes - Franchise and royalty fees remained flat at $1.8 million, indicating stability in this revenue stream despite overall losses [24] - The company achieved nearly a 100% fulfillment rate for franchisee demand during Q4, marking a significant operational turnaround [15] Market Data and Key Metrics Changes - The company is focusing on building a healthier franchise network through strategic openings and transfers, with plans to evaluate development opportunities in key markets like Atlanta and Sacramento [10][19] - The e-commerce business saw record sales during the holiday season, although profitability was challenged due to inefficient fulfillment and high advertising costs [18] Company Strategy and Development Direction - The company is undergoing a transformation to become more accountable and resilient, with a focus on operational discipline and a revamped pricing strategy [4][12] - A new ERP system has been implemented to enhance operational visibility and support data-driven decision-making, which is expected to capture several million dollars in additional gross profit in fiscal 2026 [14][22] - The company aims to return to profitability in fiscal 2026, supported by a strong foundation and a corporate culture of excellence and accountability [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth and profitability, highlighting the significant strides made in positioning the company for future success [21][22] - The leadership team is focused on engaging well-capitalized and entrepreneurial franchisees to drive expansion, particularly in underrepresented markets [36] Other Important Information - The company raised $2.2 million in equity capital and refinanced its credit facility to support its transformation efforts [22] - A brand refresh is underway, including a new logo and store design, with initial feedback being very positive [16][32] Q&A Session Summary Question: What is the process for determining quarterly price adjustments? - The company plans to adjust prices quarterly or more frequently as needed, ensuring alignment with costs while maintaining target margins [29][30] Question: What is the status of the rebranding process? - Feedback on the rebranding has been fantastic, with new packaging and store designs expected to roll out soon [31][32] Question: What is the strategy for new unit growth? - Growth will primarily come from existing franchisees who are interested in opening new stores, focusing on fewer operators with multiple locations [35][36] Question: Why were the filings delayed this year? - Delays were primarily due to the ERP installation and additional testing required by auditors, but there were no underlying issues [38][39]

Core Insights - The company is undergoing a transformative restructuring effort aimed at revitalizing its business, which includes rebuilding culture, restoring operational discipline, and modernizing core systems [2] - The company reported total revenue of $8.9 million in the fourth quarter of fiscal 2025, an increase from $7.3 million in the same quarter of fiscal 2024 [4] - The company experienced a net loss from continuing operations of $2.9 million or $(0.37) per share in the fourth quarter of fiscal 2025, compared to a net loss of $1.6 million or $(0.25) per share in the fourth quarter of fiscal 2024 [12][16] Financial Performance - Total revenue for fiscal 2025 was $29.6 million, compared to $28.0 million in fiscal 2024 [12] - Total costs and expenses increased to $35.5 million in fiscal 2025 from $32.9 million in fiscal 2024, primarily due to inflationary pressures and higher raw material costs [12] - The company reported a net loss from continuing operations of $6.1 million or $(0.86) per share for fiscal 2025, compared to a net loss of $4.9 million or $(0.77) per share for fiscal 2024 [12][16] Operational Highlights - The company has retired its co-packing operations in Salt Lake City and adjusted or exited unprofitable Specialty Market relationships [5] - A new store was opened in Charleston, South Carolina, under refreshed branding and design, with plans for a flagship location in downtown Chicago [5] - The company is advancing its brand modernization efforts, including a refreshed store design, signage upgrades, and a redesigned website expected to launch in July 2025 [5][6] Strategic Initiatives - The company has implemented a rational franchise product pricing model effective March 1, 2025, to address systemic margin pressures [5] - The company is focused on disciplined growth and profitability for the remainder of fiscal 2026, emphasizing improved franchisee performance [2] - A brand refresh is underway, including a new logo and upgraded digital experience set to launch in the coming months [2]

Core Points - Rocky Mountain Chocolate Factory Inc. will host a conference call on June 18, 2025, at 9:00 a.m. Eastern time to discuss its fiscal fourth quarter and full year 2025 results [1] - The conference call will include a question-and-answer period, and attendees can submit questions in advance [2] - The call will be available for live broadcast and replay on the Company's investor relations website [3] Company Overview - Rocky Mountain Chocolate Factory, Inc. is a leading franchiser of premium chocolate and confectionary retail stores, known as America's Chocolatier™ [4] - The Company has been producing a wide range of premium chocolates and confectionery products since 1981 and is headquartered in Durango, Colorado [4] - The Company operates nearly 260 stores across the United States and has several international locations, ranking among Entrepreneur's Franchise 500 for 2025 and Franchise Times' Franchise 400 for 2024 [4]

Core Insights - Rocky Mountain Chocolate Factory Inc. is launching its first fully redesigned store in Charleston, South Carolina, on June 3, 2025, marking its entry into the state and initiating a nationwide brand transformation [1][5] Company Expansion - The new store is operated by experienced franchisees Ross and Mackenzie Theesen, along with local operator Mike Hill, highlighting their commitment to the brand and its future [2] - This opening is part of a broader strategy to refresh nearly 150 locations across the U.S. and nearly 100 co-branded stores with Cold Stone Creamery [4] Brand Transformation - The Charleston store features a reimagined design, updated logo, fresh packaging, and a new color palette, reflecting the company's vision for the future [3] - The transformation also includes a relaunch of RMCF's E-Commerce channels with a redesigned website and cohesive brand messaging [4] Market Strategy - Charleston was chosen for its cultural heritage and tourism, aligning with the company's growth strategy targeting major metropolitan areas [5] - The long-term goal is to exceed $100 million in annual retail sales [5] Store Operations - The Charleston location will operate daily from 10:00 AM to 10:00 PM, offering a full assortment of handcrafted chocolates and confections [6] Company Background - Rocky Mountain Chocolate Factory has been producing premium chocolates since 1981 and operates nearly 260 stores across the U.S. and internationally [7]

Core Viewpoint - Rocky Mountain Chocolate Factory Inc. intends to file a Form 12b-25 for a late filing of its annual report on Form 10-K for the fiscal year ended February 28, 2025, allowing an automatic extension of 15 days for submission [1]. Company Overview - Rocky Mountain Chocolate Factory, Inc. is a leading franchiser of premium chocolate and confectionary retail stores, known as America's Chocolatier™, producing a wide range of products since 1981 [3]. - The company operates nearly 260 stores across the United States and has several international locations, ranking among Entrepreneur's Franchise 500 for 2025 and Franchise Times' Franchise 400 for 2024 [3]. - The company's common stock is listed on the Nasdaq Global Market under the symbol "RMCF" [3]. Filing Details - The company is working diligently to file the Fiscal 2025 10-K by the Rule 12b-25 deadline of June 13, 2025, and will announce the timing for its fiscal 2025 earnings release and conference call once the filing date is confirmed [2].

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]