Rocky Mountain Chocolate Factory (RMCF) investor relations material

Transformation and leadership changes

• Underwent a major transformation over the past two years, including a complete overhaul of the executive and leadership team, with a focus on culture, continuous improvement, and critical thinking.

• Four pillars of transformation: data and analytics, revenue growth, operational efficiencies, and financial stability.

• Management and employees now have equity stakes, aligning incentives and driving motivation.

Operational improvements and technology

• Implemented a new ERP and POS system in most stores, enabling better data capture and analytics for decision-making.

• Store-level websites and third-party delivery integrations (DoorDash, Grubhub, Uber Eats, Instacart, ezCater) rolled out, boosting transaction values and customer engagement.

• Data-driven approach has led to more informed pricing, margin management, and operational decisions.

Franchise network and growth strategy

• 250 total locations, with 140 branded stores and 110 co-branded (mainly with Cold Stone Creamery).

• Area development agreements in place for 40 new stores over five years, representing 30% of the current base.

• Focus on attracting multi-unit, well-capitalized franchisees to drive profitability and expansion.

• Average unit volume (AUV) is $613,000, with new stores targeted at $1 million+ in sales.