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Rocky Mountain Chocolate Factory (RMCF)
NASDAQ:RMCF
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Rocky Mountain Chocolate Factory
(NASDAQ:RMCF)
41Neutral
Rocky Mountain Chocolate Factory (RMCF) vs. S&P 500 (SPY)
Market Cap
$9.38M
Dividend YieldN/A
Average Volume (3M)42.23K
Price to Earnings (P/E)―
Beta (1Y)0.84
Revenue Growth-3.12%
EPS Growth6.60%
CountryUS
Employees135
SectorConsumer Cyclical
Sector Strength54
IndustryFood Confectioners
Share Statistics
EPS (TTM)-0.73
Shares Outstanding7,687,302
10 Day Avg. Volume39,813
30 Day Avg. Volume42,234
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.34
Price to Cash Flow (P/CF)-1.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Rocky Mountain Chocolate Factory Business Overview & Revenue Model
Company DescriptionRocky Mountain Chocolate Factory (RMCF) is a premium chocolatier and confectionery retailer headquartered in the United States. The company specializes in producing high-quality chocolates and confections, including a variety of truffles, caramels, clusters, and other candy products. RMCF operates through a network of company-owned and franchised stores, strategically located in high-traffic tourist areas and shopping centers. In addition to retail sales, the company also engages in domestic and international franchising, as well as licensing arrangements.
How the Company Makes MoneyRocky Mountain Chocolate Factory generates revenue through several key streams. The primary source of income is retail sales from company-owned and franchised stores, where customers purchase chocolates and other confectionery items. Franchising constitutes another significant revenue channel; franchisees pay initial franchise fees and ongoing royalties based on their sales. The company also earns revenue through licensing agreements, where it licenses its brand and recipes to third-party manufacturers or retailers. Additionally, RMCF benefits from online sales of its products, catering to a broader audience beyond its physical store locations. Strategic partnerships with other food and retail brands further enhance its market presence and contribute to its earnings.
Rocky Mountain Chocolate Factory Financial Statement Overview
Summary
Rocky Mountain Chocolate Factory is facing financial instability with declining revenues, profitability, increasing liabilities, and negative cash flows. Despite a moderate debt-to-equity ratio, the overall financial outlook remains challenging, highlighting the need for operational and cash management improvements.Income Statement
The company has shown a declining trend in revenue over recent years, with a significant drop in gross profit and increasing net losses. The negative EBIT and EBITDA margins indicate operational challenges, while the recent TTM data reflects further financial strain. There is no visible recovery in net profit margin, impacting overall profitability.35
Negative
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, but the company's equity has decreased over the years. The equity ratio remains healthy, suggesting a stable asset base despite the declining equity. However, the increasing liabilities raise concerns about future leverage and financial flexibility.50
Neutral
Cash Flow
The cash flow statement reveals a concerning trend with negative operating cash flow and free cash flow, indicating cash outflows that are not sustainable. The free cash flow to net income ratio is unfavorable, and the operating cash flow to net income ratio highlights ongoing cash management issues.40
Negative
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 27.94M | 27.95M | 30.43M | 32.34M | 23.48M | 31.85M | Gross Profit |
| 3.76M | 4.71M | 8.15M | 10.99M | 5.65M | 11.75M | EBIT |
| -4.82M | -4.90M | -4.89M | -474.00K | -3.42M | 1.39M | EBITDA |
| -3.85M | -3.94M | -4.10M | 223.65K | -361.00K | 2.91M | Net Income Common Stockholders |
| -4.82M | -4.88M | -5.49M | -342.00K | -900.00K | 1.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.74M | 2.08M | 4.72B | 7.59M | 5.63M | 4.82M | Total Assets |
| 18.92M | 20.58M | 21.99M | 26.88M | 24.95M | 27.82M | Total Debt |
| 0.00 | 2.94M | 2.39M | 1.81M | 1.96M | 2.70M | Net Debt |
| -3.74M | 862.46K | -4.71B | -5.77M | -3.67M | -2.12M | Total Liabilities |
| 4.19M | 9.94M | 7.62M | 7.48M | 6.05M | 8.46M | Stockholders Equity |
| 14.73M | 10.64M | 14.37M | 19.40M | 18.90M | 19.36M |
| Cash Flow | Free Cash Flow | ||||
| -10.21M | -5.45M | -3.10M | 1.91M | -186.19K | 3.34M | Operating Cash Flow |
| -7.66M | -2.43M | -2.10M | 2.86M | 67.35K | 4.40M | Investing Cash Flow |
| -521.53K | -1.45M | -767.82K | -605.00K | -70.99K | -911.41K | Financing Cash Flow |
| 7.19M | 1.25M | 0.00 | -299.06K | 814.86K | -4.05M |
Rocky Mountain Chocolate Factory Technical Analysis
Negative
1.22
Price Trends
1.61
Negative
2.11
Negative
2.08
Negative
Market Momentum
-0.13
Negative
31.56
Neutral
4.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMCF, the sentiment is Negative. The current price of 1.22 is below the 20-day moving average (MA) of 1.35, below the 50-day MA of 1.61, and below the 200-day MA of 2.08, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 31.56 is Neutral, neither overbought nor oversold. The STOCH value of 4.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RMCF.
Rocky Mountain Chocolate Factory Risk Analysis
Rocky Mountain Chocolate Factory disclosed 38 risk factors in its most recent earnings report. Rocky Mountain Chocolate Factory reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rocky Mountain Chocolate Factory Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $34.36B | 15.54 | 50.40% | 3.23% | 0.33% | 20.17% | |
76 Outperform | $87.51B | 19.76 | 16.69% | 2.71% | 1.18% | -5.47% | |
76 Outperform | $2.14B | 26.63 | 10.25% | 1.11% | -6.00% | -4.90% | |
75 Outperform | $22.49M | 7.31 | 11.70% | ― | 15.24% | ― | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
48 Neutral | $2.57B | ― | -7.37% | 4.53% | -6.77% | 44.59% | |
41 Neutral | $9.38M | ― | -43.58% | ― | -3.12% | 6.60% |
* Consumer Cyclical Sector Average
Performance Comparison
RMCF
Rocky Mountain Chocolate Factory
1.22
-2.65
-68.48%
JVA
Coffee Holding Co
3.87
2.39
161.49%
HSY
The Hershey Company
163.95
-26.15
-13.76%
NWL
Newell Brands
6.27
-0.91
-12.67%
TR
Tootsie Roll
31.29
1.09
3.61%
MDLZ
Mondelez International
66.13
-0.22
-0.33%
Rocky Mountain Chocolate Factory Earnings Call Summary
Earnings Call Date: Jan 14, 2025 | % Change Since: -53.61% | Next Earnings Date: Jul 10, 2025
Earnings Call Sentiment Positive
The earnings call highlighted promising growth in revenue and e-commerce, successful implementation of strategic initiatives such as the ERP system, and strengthening of the executive team. However, challenges with margins, increased costs, and a net loss present obstacles that need to be addressed. The overall sentiment is slightly positive, reflecting a balanced outlook with a tilt towards optimism due to strategic advancements.Highlights
Revenue and E-commerce Growth
Total revenue for Q3 2025 increased to $7.9 million from $7.7 million in the same period last year, and e-commerce sales nearly tripled during October, November, and December compared to the previous year.
New Store Openings and Franchise Model Improvements
Plans for 2 new stores and 1 new kiosk in Chicago, Charleston, and Brandon, with existing franchisees validating the improved store design and business model. A growing pipeline of desirable locations and qualified owners is expected to return to growth in franchise stores for the first time in over a decade.
Successful ERP System Launch
A new ERP system launched on January 6, expected to improve cost management, reduce manual errors, and enhance strategic decision-making with real-time insights.
Holiday Season Fulfillment Success
Fulfilled nearly 100% of franchisee and specialty market demand during the holiday season, a significant improvement from the previous year.
Executive Team Strengthening
Strategic hires including a new VP of Franchise Business Support and VP of Marketing. The executive management team build-out is complete, positioning the company to execute its long-term vision.
Lowlights
Flat Gross Profit and Margins
Total product and retail gross profit was flat at $0.7 million with gross margins slightly decreasing to 10% from 10.2% due to higher supply, third-party vendor, and labor costs.
Increased Costs and Expenses
Total costs and expenses increased to $8.6 million from $8.5 million in the year-ago period, driven in part by nonrecurring professional expenses.
Net Loss and Debt Increase
Net loss for the quarter was $0.8 million or $0.11 per share. Long-term debt at the end of the fiscal quarter was $6 million, with no long-term debt at the end of the previous fiscal year.
Continued Margin Pressures
Gross and operating margins faced pressure from various issues, which are believed to be transitory. The company is addressing these issues with anticipated improvements in future quarters.
Company Guidance
During the earnings call for Rocky Mountain Chocolate Factory's fiscal third quarter 2025, guidance focused on several key operational and financial initiatives. The company announced plans for two new store openings and one kiosk in U.S. markets, aiming to enhance average unit volume (AUV) and franchisee network quality. The company reported a revenue increase to $7.9 million, with product sales rising to $6.4 million. Despite a flat gross profit of $0.7 million and a slight gross margin decrease to 10%, they achieved an EBITDA improvement to $41,000. The company's balance sheet showed a cash balance of $1.1 million and accounts receivable at $4.1 million, reflecting increased demand. Additionally, they introduced a new ERP system expected to improve cost management and strategic decision-making, alongside ongoing rebranding efforts intended to boost franchisee interest and elevate customer experience.Rocky Mountain Chocolate Factory Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Rocky Mountain Chocolate Factory Appoints Brian Quinn to Board
Positive
Mar 17, 2025
On March 12, 2025, Rocky Mountain Chocolate Factory appointed Brian Quinn to its Board of Directors, where he will also serve on the Nominating and Corporate Governance, Audit, and Compensation Committees. Mr. Quinn, an accomplished business leader with extensive experience in brand development and franchise expansion, is expected to contribute significantly to the company’s growth initiatives and franchise store expansion. His appointment aligns with the company’s long-term vision to strengthen its brand presence and invigorate franchise growth.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.