Rocky Mountain Chocolate Factor (RMCF) research, news, and more from GeoInvesting

Company description

Tue, 03 Aug 2010 04:00:00 GMT

Rocky Mountain Chocolate Factory, Inc., headquartered in Durango, Colorado, is an international franchiser of gourmet chocolate and confection stores and a manufacturer of an extensive line of premium chocolates and other confectionery products.

Research

Fri, 07 Jul 2023 12:20:50 GMT

We are adding Rocky Mountain Chocolate Factory (NASDAQ:RMCF )($5201; $32.7M market cap) to our radar due to comments in its Q4 2023 results about plans to accelerate growth and profitability. However, please be aware that the company is still in the very early stages of its turnaround and it remains to be seen if they will be successful. RCNF operates as a confectionery franchisor, manufacturer, and retail operator

This is one of those companies that meets the first requirement of our Tier One List of having a long operating history.

“After spending the past several months conducting a full review of our business, I’m excited to announce and roll out our Strategic Transformation Plan,” said Rob Sarlls, CEO of Rocky Mountain Chocolate Factory. “The plan is designed to streamline end-to-end operations and exit non-core businesses, revitalize the in-store experience, revamp and expand our digital presence and elevate the Rocky Mountain Chocolate Factory brand. The three-part plan will be executed over the next 3-5 years, establishing Rocky Mountain Chocolate as America’s preferred premium chocolatier with first-class manufacturing and omni-channel retail.

“We have already taken bold steps to transform the business. In addition to attracting talented and experienced senior and mid-level executives, we completely exited the yogurt business, right sized our inventory levels and eliminated many slow-moving SKUs. We have also improved our franchise relations by establishing a Franchisee Advisory Council and completing in-person visits to 50 RMCF stores in 50 weeks. With respect to the store visits, it was an honor and pleasure to meet a large universe of our dedicated franchisees, as well as their hard-working and passionate staffers. I look forward to discussing our plans in more depth, and reporting on our continued progress, to all Rocky Mountain Chocolate Factory stakeholders over the coming periods, as we work to take the business to new and exciting levels of growth and profitability.”

Research

Wed, 18 Jan 2017 16:32:05 GMT

$RMCF ($11.79) - In our January 12, 2017 email, we touched upon RMCF’s strong Q3 2017 results in our earnings highlights. The company reported:

Non-GAAP EPS of $0.20 vs $0.10 in the prior year on relatively flat sales.
The company paid its 54th consecutive quarterly dividend in the amount of $0.12 and mentioned a possible increase in the dividend when the company pays off its debt
Company intends to continue to buyback stock

We will track RMCF closely as we feel it is a good growth + value candidate. By our standards, growth + value stocks are defined as undervalued now, but grossly mispriced because of what we think is going to take place in the future. Please see GeoInvesting founder Maj Soueidan’s article, “Microcap Opportunities -Combining The Tenets Of Growth + Value To Find Hidden Gems” for more on this strategy.