Rocky Mountain Chocolate Factory, Inc.

Rocky Mountain Chocolate Factory, Inc. (RMCF) has announced a $6.6 million sale-leaseback agreement for its Durango, Colorado property with American Heritage Legacies, LLC. This entity is controlled by the family of RMCF's Interim CEO, Allen Harper, making it a related-party transaction. The company plans to use the net proceeds to repay $6.6 million in outstanding promissory notes. The agreement includes a 10-year lease with an option to renew, with annual rent starting at $624,000 and increasing by 2% annually. The Durango facility will continue to function as RMCF's corporate headquarters and production/warehouse facility.

Rocky Mountain Chocolate Factory's Board of Directors is exploring strategic alternatives, including a potential sale, merger, other business combination, or a going-private transaction. This review follows statements by the Interim CEO regarding the company's strategic outlook. The company has received expressions of interest from third parties, though there is no assurance that this process will result in any transaction. The company does not intend to disclose further developments unless a specific transaction is approved or required by law.

Rocky Mountain Chocolate Factory reported a significant increase in net loss for its fiscal first quarter 2027, reaching $1.2 million or $(0.12) per share, compared to a net loss of $0.3 million in the prior year. Total revenue declined to $6.1 million from $6.4 million, and EBITDA turned negative at $(0.6) million. Interim CEO Allen Harper outlined strategic priorities to address challenges, focusing on operational improvements, higher-margin products, and debt restructuring.

Rocky Mountain Chocolate Factory reported a significant increase in net loss for the three months ended May 31, 2026, reaching $(1.17) million, up from $(0.32) million in the prior year. Total revenue declined to $6.11 million from $6.37 million. The company also disclosed substantial doubt about its ability to continue as a going concern and non-compliance with a debt covenant, though waivers were obtained.

Rocky Mountain Chocolate Factory, Inc. announced the appointment of former Board member Al Harper as Interim Chief Executive Officer and Principal Executive Officer for a 180-day term, effective immediately. The Board expressed confidence in Mr. Harper's extensive leadership experience and deep understanding of franchising and the Company's business. The Company stated that it does not anticipate any changes to its strategic direction or day-to-day operations as a result of this leadership transition, emphasizing its commitment to supporting franchisees and executing strategic priorities.

Rocky Mountain Chocolate Factory, Inc. announced that Jeffrey R Geygan has resigned from his position as interim CEO, effective June 26, 2026. Mr. Geygan will, however, remain a member of the company's Board of Directors.

Rocky Mountain Chocolate Factory, Inc. announced the grand opening of two new franchise locations, one in Tinton Falls, New Jersey, and another in Folsom, California. This marks a historic coast-to-coast expansion for the company, with ribbon cuttings scheduled for consecutive days on June 26 and June 27, 2026. The openings highlight the brand's continued growth momentum, successful franchise development, and expanding presence across the United States, with existing franchisees investing further in the brand.

Rocky Mountain Chocolate Factory, Inc. announced a change in its independent registered public accounting firm. The Audit Committee approved the engagement of Rosenberg Rich Baker Berman, P.A. (RRBB) for the fiscal year ending February 28, 2027, and simultaneously dismissed CohnReznick LLP. While CohnReznick's prior reports included an explanatory paragraph about going concern, the company confirmed there were no disagreements or reportable events with CohnReznick, and no prior consultations with RRBB on accounting matters.

Rocky Mountain Chocolate Factory reported mixed financial results for its fiscal fourth quarter and full year ended February 28, 2026. While Q4 revenue declined to $6.8 million and net loss increased to $3.4 million, the full fiscal year saw a significant improvement in profitability metrics. The company's net loss for FY26 narrowed to $4.6 million from $6.1 million, and EBITDA improved to $(2.1) million from $(4.7) million, despite a decrease in total revenue to $27.5 million. Management highlighted substantial progress in operational transformation, improving product margin profile, and enhancing business foundations.

Rocky Mountain Chocolate Factory, an international franchisor and confectionery producer, provided an overview of its operations for the fiscal year ended February 28, 2026. The company reported 3 Company-owned, 111 licensee-owned, and 139 franchised stores across 34 states and the Philippines. Revenues for FY2026 were primarily derived from sales to franchisees and third parties (71%), initial franchise fees, royalties, and marketing fees (22%), and Company-owned store sales (7%). The company continues to focus on product quality, store ambiance, and expansion through unit growth and multi-unit operators.