Rocky Mountain Chocolate Factory (RMCF) investor relations material

Strategic transformation and leadership

• Interim CEO and new executive team focused on turnaround since 2021, emphasizing operational and cultural change.

• Four cornerstones: data/analytics, revenue growth, operational efficiency, and financial stability.

• Significant cost reductions, including $1.5 million in SG&A savings and $1.5 million from bringing packaging in-house.

• Emphasis on hiring experienced franchise, operations, and marketing leaders to drive growth.

• Strong focus on culture, accountability, and equity-driven management.

Financial performance and operational improvements

• Revenue for the first half of fiscal 2026 reached $13 million, with break-even adjusted EBITDA compared to a $2 million loss last year.

• Store count declined from a peak of 238 to 139, but the company is now on track to be net store positive for the first time in over a decade.

• Average unit volume is $613,000, with new stores in Charleston and Chicago performing well.

• Company-owned stores remodeled and acquired at attractive margins, with plans to expand this model.

• SKU rationalization from 1,000 to 356 items to improve production efficiency.

Franchise strategy and growth initiatives

• Signed a nine-store deal in Miami, the largest in 10-15 years, with more multi-unit deals expected soon.

• Targeting sophisticated, well-capitalized franchisees capable of opening multiple stores.

• New franchisee vetting focuses on financial acumen, capitalization, and entrepreneurial drive.

• Actively managing store transitions to minimize closures and encourage consolidation among franchisees.

• New digital assets, loyalty program, and third-party delivery partnerships to drive same-store sales.