Rocky Mountain Chocolate Factory, Inc. is an international franchisor, confectionery producer, and retail operator specializing in premium chocolates, with operations mainly in the US and the Philippines, focusing on store expansion and brand recognition.

# Company Summary: Rocky Mountain Chocolate Factory, Inc.

## Business Overview
- **Type of Business:** International franchisor, confectionery producer, and retail operator specializing in premium chocolates and confectionery products.
- **Founded:** 1981
- **Headquarters:** Durango, Colorado
- **Main Revenue Sources:**
  - Sales to franchisees and third parties of chocolates and confectionery products produced by the company (approximately 74-77% of FY 2025 revenue).
  - Sales at Company-owned stores featuring chocolates and confectionery (about 5% of FY 2025 revenue).
  - Initial franchise, royalty, and marketing fees from franchisees (19-21% of FY 2025 revenue).

## Operations
- **Stores:**
  - **Total Stores (as of February 28, 2025):** 260 stores
    - 2 Company-owned stores
    - 138 domestic franchise stores
    - 3 international license stores (Philippines)
    - 107 co-branded stores with Cold Stone Creamery
    - 10 co-branded stores with SWRL
- **Locations:** Spread across 27 states (U.S.) and the Philippines
- **Employees:** Approximately 160 employees
  - 140 full-time employees
  - Store management, production management, corporate staff
- **Production Facility:** 
  - Location: Durango, Colorado
  - Facility Size: 53,000 sq. ft.
  - Production in FY 2025: approximately 2.05 million pounds of chocolate (up 27% from FY 2024).

## Financial Highlights (FY 2025)
- **Revenue:** $29.6 million (increase of 5.8% from FY 2024's $28.0 million)
- **Net Loss:** $6.1 million
- **Earnings Per Share:** Loss of $0.86 per share (basic and diluted)
- **Working Capital:** $2.4 million (up from $1.5 million in FY 2024)
- **Cash Balance:** $0.7 million (decreased from $2.1 million FY 2024)
- **Operating Loss:** $5.9 million
- **Significant Events:**
  - Sale of U-Swirl frozen yogurt business in May 2023 for $2.75 million.
  - Raised $2.2 million through private placement in September 2024.
  - Borrowed $6 million via a new credit agreement in September 2024, with a maturity date of September 2027.
  - Incurred substantial costs related to supply chain inflation, higher raw material and labor costs.
  - Recognized substantial net losses and negative cash flows, raising doubts about ongoing operations ("substantial doubt about the company’s ability to continue as a going concern").

## Strategic Focus
- Maintain high product quality with proprietary recipes.
- Enhance store ambiance by in-store product preparation, creating a fun and inviting atmosphere.
- Expand store locations, especially in high-traffic environments such as malls, tourist areas, airports, and entertainment centers.
- Focus on increasing sales at existing stores and expanding wholesale, fundraising, and e-commerce channels.
- Leverage brand recognition through store visibility, innovative marketing, and co-branding partnerships.

## Additional Details
- **International Presence:** 3 stores in the Philippines.
- **Brand and Intellectual Property:** Proprietary trademarks including "Rocky Mountain Chocolate Factory," "The Peak of Perfection in Handmade Chocolates," and "America's Chocolatier."
- **Environmental & Regulatory Considerations:** Subject to food safety laws (FDA, USDA), food labeling laws, and franchise regulations.
- **Market:** Primarily US domestic with less than 1% international sales.

This summary reflects the company's operations, financial condition, and strategic focus based solely on the provided content.

Rocky Mountain Chocolate Factory, Inc. is an international franchisor and confectionery manufacturer known for its premium chocolate and confectionery products, operating through a network of company-owned, licensed, and franchised stores.

# Rocky Mountain Chocolate Factory, Inc. Summary

## Overview
Rocky Mountain Chocolate Factory, Inc. is an international franchisor and confectionery manufacturer headquartered in Durango, Colorado. Established in 1981, the company specializes in producing a wide array of premium chocolate and confectionery products. The company operates through a franchised/licensed retail system and also sells products through Specialty Markets.

## Operations

- **Store Presence**: 
  - As of February 29, 2024, Rocky Mountain Chocolate Factory operated:
    - **2 Company-owned stores**
    - **115 Licensee-owned stores**
    - **152 Franchised stores**
  - These stores are spread across **36 states** in the United States and the **Philippines**.

- **Product Lines**: The company offers approximately **400 different chocolate and confectionery products**, which include varieties such as clusters, caramels, creams, toffees, mints, and truffles. Each store typically features up to **100 products year-round**, expanding to approximately **200 products during holiday seasons**.

## Financial Performance

- **Revenue**: 
  - In fiscal year 2024, Rocky Mountain Chocolate Factory reported revenues of **$27.95 million**, a decrease of **8.2%** from the previous fiscal year's revenue of **$30.43 million**.
  - Revenue sources:
    - Sales of chocolates and confectionery products to franchisees and third parties: **74%**
    - Franchise and royalty fees: **21%**
    - Sales at Company-owned stores: **5%**

- **Profitability**: 
  - The company reported a loss from continuing operations of **$4.87 million** for FY 2024, an improvement compared to a loss of **$5.49 million** for FY 2023.

- **Basic Loss per Share**: 
  - The basic loss per share for FY 2024 was **$(0.77)** compared to **$(0.88)** in FY 2023.

## Employment

- **Employee Count**: As of February 29, 2024, Rocky Mountain Chocolate Factory employed approximately **160 people**, including **135 full-time employees**.

## Growth Strategy

Rocky Mountain Chocolate Factory aims to enhance its market position through:
- Product Quality and Variety: Maintaining high standards in its product offerings and expanding product lines.
- Store Atmosphere: Creating engaging and inviting shopping environments that enhance customer experience.
- Expansion Strategies: Targeting high-traffic environments for new stores, focusing on multi-unit operators, and increasing same-store sales.

## Challenges
The company faces various risks, including:
- Higher labor costs and supply chain disruptions due to macroeconomic factors.
- Intense competition in the confectionery market.
- Seasonal fluctuations in sales tied to holidays and tourism.

Rocky Mountain Chocolate Factory continues to focus on its confectionery business, particularly after divesting from its frozen yogurt segment, aiming for sustainable growth and enhanced profitability.

Rocky Mountain Chocolate Factory, Inc.

10-K / June 20, 2025

10-K / June 13, 2024

10-K / June 20, 2025

Company Summary: Rocky Mountain Chocolate Factory, Inc.

Business Overview

Operations

Financial Highlights (FY 2025)

Strategic Focus

Additional Details