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 ...

Group 1 - The company has signed a three-year lease agreement for a property in Kwun Tong, which will be renovated and opened as a Chinese restaurant by August 17, 2025 [1] - The lease includes favorable terms such as a three-month rent-free period and reduced opening costs due to existing Chinese restaurant decor and equipment [1] - The restaurant has obtained all necessary licenses, and the management team has been hired, indicating readiness for operations [1] Group 2 - The Hong Kong retail and dining sectors have faced challenges since 2019, including a trend of residents spending weekends in Shenzhen and increased overseas travel [2] - However, the dining industry is gradually recovering, aided by a slowdown in immigration, the return of social gatherings, and government initiatives to boost tourism [2] - The company is adapting to consumer preferences by offering value meals and special menus to attract both local customers and tourists [2] Group 3 - The financial performance of the company's Chinese restaurants has improved, and there is confidence in seizing emerging opportunities due to favorable economic indicators and rising domestic consumption [3] - The company plans to expand its operations by opening more Chinese restaurants and tea houses, using a set of criteria to evaluate potential locations [3] - Strategic expansion and commitment to quality dining experiences are expected to enhance customer satisfaction and strengthen the company's competitive position in the Hong Kong dining market [3]

Financial Data and Key Metrics Changes - System-wide sales increased by 5.1% to $146.2 million, driven by new company-owned restaurants [8] - Total revenue decreased by 5.4% to $87.1 million compared to $92.1 million in the prior year [18] - Net loss for the quarter was $12.1 million, compared to a loss of $9.2 million in the previous year [25] Business Line Data and Key Metrics Changes - Twin Peaks revenue increased by 5.9% to $51 million, while Smoky Bones revenue decreased by 17.8% to $36.1 million [19] - Same store sales for Twin Peaks decreased by 1.5%, with a 2.7% decline at company-owned locations and a 1% decline at franchise locations [9] - Restaurant level contribution margin for Twin Peaks decreased to 16.9% from 17.4% in the prior year [23] Market Data and Key Metrics Changes - Franchise revenue remained steady at $8.7 million, offsetting declines in same store sales [20] - Alcohol sales comprised nearly 50% of restaurant revenue, significantly higher than typical casual dining competitors [12] Company Strategy and Development Direction - The company plans to open three to four new units in 2025, with a robust development pipeline of 100 franchise agreements [7][11] - A strategic barbell pricing approach is being utilized to cater to various customer segments while maintaining value [13] - The company is focusing on major sporting events for marketing, enhancing customer engagement through promotions [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from weather and macroeconomic factors impacting same store sales [9] - The company is optimistic about upcoming promotional calendars and major sporting events to drive traffic [9][15] - Management expressed confidence in achieving full annual equity target raise despite current market volatility [25][26] Other Important Information - Twin Peaks was awarded the Black Box Intelligence 2025 Voice of the Customer Award, highlighting strong brand loyalty and customer experience [16][17] - The company is undergoing a strategic conversion of Smoky Bones locations into Twin Peaks lodges, which is expected to enhance performance [19] Summary of Q&A Session - No questions were taken following the prepared remarks, and the call concluded without a Q&A session [3][27]

Core Viewpoint - Wingstop demonstrated strong revenue growth in Q1 FY2025, but same-store sales growth and rising costs raise concerns about future profitability [1][2]. Financial Performance - Revenue increased by 17.4% year-over-year to $171.1 million in Q1 FY2025, up from $145.8 million in Q1 FY2024 [3]. - Net income surged by 221% to $92.3 million, translating to $3.24 per diluted share [1][6]. - Adjusted EBITDA rose by 18.4% to $59.5 million, indicating effective operational management [3][8]. - System-wide sales reached $1.30 billion, reflecting a 15.6% increase from the previous year [3][6]. Same-Store Sales and Costs - Same-store sales grew by only 0.5% in Q1 FY2025, a significant decline from a 21.6% increase in the same quarter last year [2][7]. - The cost of sales increased to 76% of sales, up from 74.5% in the prior fiscal first quarter, raising concerns about profitability [8]. Business Model and Expansion - Wingstop operates a predominantly franchised model, with 98% of locations being franchise-run, which supports high operating margins and consistent cash flow [4]. - The company aims to expand to over 6,000 domestic outlets and 4,000 international locations, projecting a global unit growth rate of 14% to 15% [4][9]. Digital Strategy - The company focuses on digital sales and customer engagement, with digital channels accounting for 72% of system-wide sales in Q1 FY2025 [5]. - Significant investments in technology and advertising are being made to sustain same-store sales growth [5]. Future Outlook - Management remains optimistic about expansion despite a challenging macroeconomic environment that may impact consumer spending [9][10]. - No specific forward guidance on earnings or revenue was provided, with a focus on strategic expansion and digital transformation [10].