Rocky Mountain Chocolate Factory (RMCF) AI Stock Analysis

• Market Cap: $13.25M
• Dividend Yield: N/A
• Average Volume (3M): 584.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: 5.81%
• EPS Growth: 19.66%
• Country: US
• Employees: 135
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): -0.04
• Shares Outstanding: 7,793,924
• 10 Day Avg. Volume: 148,323
• 30 Day Avg. Volume: 584,730
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.03
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 4.83
• Enterprise Value/Ebitda: -7.14
• 1Y Price Target: $1.50
• Price Target Upside: -11.76% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: $1.50 ▼(-11.76% Downside)

Rocky Mountain Chocolate Factory's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and profitability, increased leverage, and negative cash flows. While technical indicators show some potential for a rebound, and the earnings call reflects operational improvements, these are overshadowed by the company's financial challenges and poor valuation metrics.

Rocky Mountain Chocolate Factory Business Overview & Revenue Model

Company Description

Rocky Mountain Chocolate Factory, Inc., together with its subsidiaries, operates as a confectionery franchisor, manufacturer, and retail operator. It operates through five segments: Franchising, Manufacturing, Retail Stores, U-Swirl Operations, and Other. The company produces approximately 400 chocolate candies and other confectionery products, including clusters, caramels, creams, toffees, mints, and truffles; and offers 15 varieties of caramel apples and other products that are prepared in individual stores, as well as provides ice cream, coffee, and other sundries. As of March 31, 2022, it operated two company-owned, 99 licensee-owned, and 159 franchised Rocky Mountain Chocolate Factory stores operating in 37 states in South Korea, Panama, and the Philippines; three company-owned, and 63 franchised and licensed cafés located in 22 states and Qatar; and self-serve frozen yogurt cafés under the U-Swirl, Yogurtini, CherryBerry, Yogli Mogli Frozen Yogurt, Fuzzy Peach Frozen Yogurt, Let's Yo!, and Aspen Leaf Yogurt brand names. The company has strategic alliance with Edible Arrangements, LLC and its affiliates to provide branded chocolate products. Rocky Mountain Chocolate Factory, Inc. was founded in 1981 and is headquartered in Durango, Colorado.

How the Company Makes Money

Rocky Mountain Chocolate Factory generates revenue through multiple streams, including retail sales from its franchised and company-owned stores, e-commerce sales via its website, and wholesale distribution to various retailers. The company’s franchise model allows it to expand its brand presence while earning franchise fees and royalties from franchisees. Additionally, RMCF engages in seasonal promotions and custom packaging services, which attract corporate clients looking for gifts and promotional items. Strategic partnerships with retailers and participation in events also contribute to its earnings, enabling RMCF to reach a broader audience and enhance brand visibility.

Rocky Mountain Chocolate Factory Financial Statement Overview

Summary

Rocky Mountain Chocolate Factory faces significant financial challenges, with deteriorating profitability, increased leverage, and negative cash flows. The company's declining revenue and margins highlight operational inefficiencies and market pressures. The balance sheet shows increased financial risk, while cash flow issues signal liquidity concerns.

Income Statement

Rocky Mountain Chocolate Factory has experienced declining revenue with a negative trend in profitability margins. The gross profit margin has decreased from 36.9% in 2020 to 11% in 2025, indicating cost pressures or inefficiencies. The net profit margin has been negative over recent years, with a downward trajectory from 3.2% in 2020 to -20.7% in 2025. Revenue growth has been unstable, with significant declines, especially evident from 2024 to 2025. This trend reflects challenges in maintaining a stable revenue stream and profitability.

Balance Sheet

The company's financial leverage has increased, with the debt-to-equity ratio rising from 0.14 in 2020 to 1.03 in 2025, indicating higher financial risk. The equity ratio has declined, reflecting a reduced buffer to absorb potential losses. Additionally, return on equity has been consistently negative due to ongoing net losses, showcasing poor returns for shareholders. The balance sheet indicates a weakened financial position and reduced investor confidence.

Cash Flow

Operating cash flow has turned negative, with significant declines from 2020 to 2025, reflecting operational challenges. Free cash flow has also deteriorated, indicating insufficient cash generation to cover capital expenditures. The operating cash flow to net income ratio is negative, further highlighting inefficiencies in converting income into cash. The cash flow situation poses liquidity risks and limits the company's financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.55M	29.58M	27.95M	30.43M	32.34M	21.76M
Gross Profit	5.57M	3.25M	4.71M	8.15M	10.99M	5.65M
EBITDA	-3.77M	-4.72M	-3.94M	-4.10M	223.65K	-361.00K
Net Income	-4.79M	-6.12M	-4.17M	-5.49M	-342.00K	-900.00K
Balance Sheet
Total Assets	20.10M	21.18M	20.58M	21.99M	26.88M	24.95M
Cash, Cash Equivalents and Short-Term Investments	893.00K	720.00K	2.08M	4.72M	7.59M	5.63M
Total Debt	7.10M	7.21M	2.94M	2.39M	1.81M	1.96M
Total Liabilities	13.36M	14.20M	9.94M	7.62M	7.48M	6.05M
Stockholders Equity	6.73M	6.97M	10.64M	14.37M	19.40M	18.90M
Cash Flow
Free Cash Flow	-7.60M	-10.36M	-5.45M	-3.10M	1.91M	-186.19K
Operating Cash Flow	-4.09M	-6.59M	-2.43M	-2.10M	2.86M	67.35K
Investing Cash Flow	-1.79M	-1.66M	-1.45M	-767.82K	-605.00K	-70.99K
Financing Cash Flow	6.14M	6.89M	1.25M	0.00	-299.06K	814.86K

Rocky Mountain Chocolate Factory Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMCF, the sentiment is Positive. The current price of 1.7 is above the 20-day moving average (MA) of 1.66, above the 50-day MA of 1.58, and above the 200-day MA of 1.61, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 53.98 is Neutral, neither overbought nor oversold. The STOCH value of 21.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMCF.

Rocky Mountain Chocolate Factory Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSY	78 Outperform	$39.56B	25.93	35.89%	2.81%	2.55%	-16.52%
TR	76 Outperform	$3.38B	35.06	10.49%	0.61%	-3.75%	-3.91%
MDLZ	73 Outperform	$81.09B	22.89	13.51%	3.05%	3.14%	-5.80%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
RMCF	47 Neutral	$13.25M	―	-60.80%	―	5.81%	19.66%

Rocky Mountain Chocolate Factory Corporate Events

Rocky Mountain Chocolate Factory Secures $1.2 Million Credit

On August 28, 2025, Rocky Mountain Chocolate Factory, Inc. entered into a credit agreement with RMCF2 Credit, LLC, securing a $1.2 million advance to support capital investment and working capital needs. The agreement, which includes a promissory note maturing in 2027, outlines financial covenants and a deed of trust on the company’s property in Durango, Colorado. Additionally, the company amended a previous credit agreement with RMC Credit Facility, LLC, obtaining an additional $600,000 advance under similar terms. Both agreements include waivers for certain financial covenants for the fiscal quarters ending August 31 and November 30, 2025.

The most recent analyst rating on (RMCF) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Rocky Mountain Chocolate Factory stock, see the RMCF Stock Forecast page.

Rocky Mountain Chocolate Factory Holds Annual Meeting

On August 12, 2025, Rocky Mountain Chocolate Factory held its Annual Meeting of Stockholders virtually, with a quorum present as 71.72% of shares were represented. During the meeting, directors were elected, the appointment of CohnReznick LLP as the independent registered public accounting firm was ratified, and the compensation of named executive officers was approved on an advisory basis.

Rocky Mountain Chocolate Factory Transfers to Nasdaq Capital Market

On January 21, 2025, Rocky Mountain Chocolate Factory was informed by Nasdaq that it did not meet the minimum stockholders’ equity requirement for listing on The Nasdaq Global Market. Subsequently, on July 22, 2025, Nasdaq approved the company’s request to transfer its listing to The Nasdaq Capital Market, effective July 24, 2025, allowing its stock to continue trading under the symbol ‘RMCF.’

Rocky Mountain Chocolate Factory Regains Nasdaq Compliance

Rocky Mountain Chocolate Factory faced a delay in filing its Annual Report for the fiscal year ended February 28, 2025, which led to a notice from Nasdaq about non-compliance with listing rules. The company resolved the issue by filing the report on June 20, 2025, and subsequently regained compliance with Nasdaq’s requirements by June 23, 2025, ensuring no immediate impact on its stock listing.