Want to see RMCF full AI Analyst Report?
Top Page
Rocky Mountain Chocolate Factory
(NASDAQ:RMCF)
Select Model
Select Model
Rating:44Neutral
Price Target:
$0.79
â–¼(-25.47% Downside)
Action:Reiterated
Date:10/20/26
The score is held down primarily by weak financial performance (sharp revenue contraction, sustained losses, higher leverage, and continued negative operating/free cash flow). Technicals remain pressured with the stock below key medium/long-term moving averages and only neutral momentum indicators. Corporate actions (sale-leaseback to repay high-cost debt and new financing) provide some near-term flexibility but also add longer-term lease obligations and governance/transaction-structure risks, while valuation is difficult to support given negative earnings and no dividend yield provided.
Positive Factors
Margin Improvement
Improved gross profit and margin indicate that pricing actions and production efficiencies are beginning to strengthen the economics of the core confectionery operation. If sustained, these gains can provide a foundation for better earnings conversion even while the company works through elevated overhead and weak recent revenue.
Negative Factors
Revenue Contraction
The sharp TTM revenue decline and persistent net and operating losses show that the business is not currently converting its retail, franchise and product platform into sustainable earnings. Continued contraction would reduce scale benefits and make recovery dependent on materially improving demand and cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Improvement
Improved gross profit and margin indicate that pricing actions and production efficiencies are beginning to strengthen the economics of the core confectionery operation. If sustained, these gains can provide a foundation for better earnings conversion even while the company works through elevated overhead and weak recent revenue.
Read all positive factors
Rocky Mountain Chocolate Factory Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals how much profit each business unit (company‑owned stores, franchised stores, manufacturing/wholesale, corporate gifting, e‑commerce) generates after operating costs. For Rocky Mountain Chocolate Factory, segment operating income highlights which lines are truly profitable, whether franchise royalties and wholesale margins cover corporate overhead, and how sensitive profit is to ingredient costs and seasonal demand—helping you judge margin quality and operational risks.
Reveals how much profit each business unit (company‑owned stores, franchised stores, manufacturing/wholesale, corporate gifting, e‑commerce) generates after operating costs. For Rocky Mountain Chocolate Factory, segment operating income highlights which lines are truly profitable, whether franchise royalties and wholesale margins cover corporate overhead, and how sensitive profit is to ingredient costs and seasonal demand—helping you judge margin quality and operational risks.
Data provided by:
The Fly
The FlyRocky Mountain Chocolate Factory (RMCF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.97M
Dividend Yield0.14%
Average Volume (3M)75.82K
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth-9.74%
EPS Growth-13.42%
CountryUS
Employees145
SectorConsumer Defensive
Sector Strength42
IndustryFood Confectioners
Share Statistics
EPS (TTM)-0.70
Shares Outstanding9,601,236
10 Day Avg. Volume26,930
30 Day Avg. Volume75,819
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)3.94
Price to Sales (P/S)0.75
P/FCF Ratio-8.67
Enterprise Value/Market Cap2.32
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit3.51
Enterprise Value/Ebitda-5.51
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Rocky Mountain Chocolate Factory Business Overview & Revenue Model
Company Description
Rocky Mountain Chocolate Factory, Inc. (RMCF) operates primarily within the confectionery industry, functioning as a franchisor, a manufacturer, and a direct retail operator of sweet treats. The company's business activities are categorized into f...
How the Company Makes Money
RMCF makes money primarily through a franchising and confectionery products model. Key revenue streams include: (1) Franchise-related revenue: fees and ongoing royalties paid by franchisees that operate Rocky Mountain Chocolate Factory-branded ret...
Rocky Mountain Chocolate Factory Earnings Call Summary
Earnings Call Date:Jun 01, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jan 14, 2027
Earnings Call Sentiment Neutral
The call highlights meaningful operational progress: margin mix improvement, cost reductions, promising store remodel results, a healthy pipeline of 40 committed franchise developments, and planned ecommerce and packaging fixes. However, these positives are offset in the near term by a significant revenue decline (~24% total revenue, ~28% product sales), a widened net loss ($3.4M), a $1.5M packaged sales shortfall, and several one-time disruption costs. Management presented concrete remediation steps (consumer research, reconfigured packaging by Labor Day, negotiated shipping rates, POS analytics, and focused franchise growth) that support a path to recovery, but near-term financial weakness and execution risk remain material.Positive Updates
Operational Margin Improvement
Company achieved the highest gross margin mix in over 2 years and management says gross margin is now close to long-term target due to price adjustments, production process reviews, SKU rationalization and improved production throughput.
Negative Updates
Significant Revenue Decline
Total revenue for the quarter was $6.8M versus $8.9M a year ago, a decline of approximately 24%; product sales were $5.1M vs $7.1M, a drop of ~28% year-over-year.
Read all updates
Q4-2026 Updates
Positive
Negative
Operational Margin Improvement
Company achieved the highest gross margin mix in over 2 years and management says gross margin is now close to long-term target due to price adjustments, production process reviews, SKU rationalization and improved production throughput.
Read all positive updates
Company Guidance
Management's guidance focused on rapid remediation of the packaged product setback and targeted growth initiatives: a reconfigured packaged lineup (3‑, 4‑ and 6‑piece assortments, cup‑style packaging) will be in stores by Labor Day after consumer research of more than 1,000 participants to address roughly $1.5M of package sales shortfall (and the nearly $1.5M seasonal specialty‑customer exit), the new mobile app is expected late summer, and a Miraculous caramel‑apple promotion runs Sept 15–Oct 31; ecommerce shipping economics have been improved via corporate rates, third‑party delivery is generating ~2x average baskets versus in‑store with ~50% fulfilled as in‑store pickup and commissions at or below 20%, and a white‑label online option avoids commissions; retail/rollout targets include dedicating 60% of selling space to core brand items, growing company‑owned stores from 4 (3% of the base) toward 5–10%, pursuing 40 committed ADA locations over the next 3–5 years (including a new 6‑store ADA and a 9‑store Miami ADA with 2 underway), aiming for ~6‑month store openings and multi‑unit franchisees (10–12+ units); remodel proof points: Chicago ~ $1.1M and Charleston ~ $600K annualized run rates and Corpus Christi +10–15% sales post‑remodel; Q4 financial context: total revenue $6.8M, product sales $5.1M, net loss $3.4M, cash $1.2M, inventory $4.1M, and total debt $6.6M.Rocky Mountain Chocolate Factory Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
32
Negative
Cash Flow
21
Negative
| Breakdown | TTM | May 2026 | May 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.07M | 27.50M | 29.58M | 27.95M | 30.43M | 29.49M |
| Gross Profit | 5.27M | 2.80M | 3.25M | 4.71M | 8.15M | 8.96M |
| EBITDA | -3.36M | -2.13M | -4.72M | -3.94M | -4.10M | 223.65K |
| Net Income | -6.02M | -4.56M | -6.12M | -4.17M | -5.68M | -341.70K |
Balance Sheet | ||||||
| Total Assets | 18.79M | 20.21M | 21.18M | 20.58M | 21.99M | 26.88M |
| Cash, Cash Equivalents and Short-Term Investments | 416.00K | 1.22M | 720.00K | 2.08M | 4.72M | 7.59M |
| Total Debt | 8.63M | 7.90M | 7.21M | 2.94M | 2.39M | 1.81M |
| Total Liabilities | 15.77M | 14.98M | 14.20M | 9.94M | 7.62M | 7.48M |
| Stockholders Equity | 3.03M | 5.23M | 6.97M | 10.64M | 14.37M | 19.40M |
Cash Flow | ||||||
| Free Cash Flow | -2.76M | -2.38M | -10.36M | -5.45M | -3.10M | 1.92M |
| Operating Cash Flow | -2.17M | -1.81M | -6.59M | -2.44M | -2.10M | 2.86M |
| Investing Cash Flow | -672.00K | -764.00K | -1.66M | -1.45M | -767.82K | -605.00K |
| Financing Cash Flow | 1.24M | 3.07M | 6.89M | 1.25M | 0.00 | -299.06K |
Rocky Mountain Chocolate Factory Technical Analysis
Negative
1.06
Price Trends
0.94
Negative
1.04
Negative
1.67
Negative
Market Momentum
-0.03
Positive
39.78
Neutral
5.42
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 1.06 is above the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.94, and below the 200-day MA of 1.67, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.78 is Neutral, neither overbought nor oversold. The STOCH value of 5.42 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $79.81B | 19.66 | 15.56% | 3.23% | 6.93% | -0.53% | |
67 Neutral | $2.82B | 28.12 | 10.15% | 0.98% | 1.65% | 5.45% | |
65 Neutral | $32.20B | 17.85 | 38.14% | 3.57% | 6.69% | 32.39% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
46 Neutral | $555.20M | -5.82 | -14.85% | 3.13% | -4.75% | 78.91% | |
44 Neutral | $7.97M | -1.19 | -130.90% | 0.14% | -9.74% | -13.42% |
* Consumer Defensive Sector Average
RMCF
Rocky Mountain Chocolate Factory
0.85
-0.87
-50.58%
HSY
The Hershey Company
165.61
0.95
0.57%
TR
Tootsie Roll
36.86
2.92
8.59%
MDLZ
Mondelez International
64.94
9.45
17.04%
DNUT
Krispy Kreme
3.28
-0.31
-8.77%
Rocky Mountain Chocolate Factory Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Rocky Mountain Chocolate reshapes capital structure with new financing
Negative
Oct 19, 2026
Rocky Mountain Chocolate Factory reported fiscal second-quarter 2027 results for the period ended August 31, 2026, showing flat revenue of $6.7 million year over year but a swing to positive product and retail gross profit and improved gross margi...
Business Operations and StrategyPrivate Placements and Financing
Rocky Mountain Chocolate Executes Headquarters Sale-Leaseback Agreement
Positive
Oct 6, 2026
On Sept. 29, 2026, Rocky Mountain Chocolate Factory’s board approved, and on Sept. 30, 2026 the company executed, a $6.6 million sale-leaseback of its Durango, Colo. headquarters and production facility with American Heritage Legacies, a loc...
Business Operations and StrategyExecutive/Board Changes
Rocky Mountain Chocolate Factory Names New Chief Operating Officer
Positive
Aug 24, 2026
On August 18, 2026, Rocky Mountain Chocolate Factory’s board approved the appointment of David Denker as Chief Operating Officer, effective August 14, 2026, formalized via an employment agreement amendment on August 18. Denker, a Certified F...
Business Operations and StrategyM&A Transactions
Rocky Mountain Chocolate Factory Explores Strategic Alternatives, Sale
Neutral
Aug 12, 2026
On August 11, 2026, Rocky Mountain Chocolate Factory’s interim chief executive told employees and franchisees that the board is reviewing strategic options, including a possible sale of the company as part of a broader evaluation of alternat...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Rocky Mountain Chocolate Factory Holds 2026 Annual Meeting
Positive
Aug 7, 2026
On August 3, 2026, Rocky Mountain Chocolate Factory, Inc. held its 2026 annual meeting of stockholders via live webcast, with approximately 82% of eligible shares represented, and elected five directors to serve until the 2027 annual meeting. Stoc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.