Rocky Mountain Chocolate Factory Reports Q3 Revenue of $7.54M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
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Should l Buy RMCF?
Reports Q3 revenue $7.54M vs. $7.89M last year. "During the third quarter, we continued to execute our margin-first transformation, making deliberate decisions to exit lower-margin revenue streams and prioritize profitability," said Jeff Geygan, interim CEO of Rocky Mountain Chocolate Factory. "This led to meaningful improvement in gross profit and margin, which remains our primary focus as we reposition the business for sustainable growth. Ongoing initiatives related to pricing adjustments, SKU rationalization and improved product mix are beginning to take hold, even as we work through higher input costs and near-term operational inefficiencies tied to production transitions."
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Analyst Views on RMCF
About RMCF
Rocky Mountain Chocolate Factory Inc. is a franchiser of a premium chocolate and confectionary retail store concept. The Company is engaged in producing an extensive line of premium chocolates and other confectionery products, including gourmet caramel apples. It operates through three segments: Franchising, Manufacturing and Retail Stores. It produces over 300 chocolates and other confectionery products, including varieties of clusters, caramels, creams, toffees, mints and truffles. The Company sells its products in a select number of specialty markets, including wholesale, fundraising, corporate sales, e-commerce, and private label. The Company also makes a variety of seasonal items, including many candies offered in packages, which are specifically designed for holidays. The Company and its franchisees and licensees operate nearly 250 Rocky Mountain Chocolate stores across the United States, with several international locations.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Franchise Ranking: Rocky Mountain Chocolate Factory achieved a ranking of 415th in the 2026 Entrepreneur's Franchise 500, showcasing its outstanding performance in unit growth, financial stability, and brand strength, thereby reinforcing its position as a premium franchise opportunity.
- Industry Recognition: This ranking has been a gold standard in the franchise industry for 47 years, indicating that Rocky Mountain Chocolate Factory not only survives but thrives in changing markets, enhancing its appeal to potential franchisees.
- Evaluation Criteria: Entrepreneur's assessment is based on over 150 data points, including costs, growth, franchisee support, and brand strength, ensuring the fairness and authority of the ranking, which in turn boosts Rocky Mountain Chocolate Factory's competitive edge in the market.
- Market Coverage: Since its establishment in 1981, Rocky Mountain Chocolate Factory has operated over 250 stores across the U.S. and expanded internationally, demonstrating its strong brand influence and market penetration capabilities.
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- Margin Improvement: Rocky Mountain Chocolate Factory achieved a gross margin of 21.4% in Q3, significantly up from 10% year-over-year, demonstrating effective execution of its margin-first strategy despite short-term revenue pressures.
- Revenue and Net Loss: Total revenue for the quarter was $7.5 million, down from $7.9 million last year, reflecting the company's strategic exit from low-margin revenue streams, while net loss narrowed to $200,000, indicating initial success in cost control.
- Franchise Development: The company has 34 stores under development and is constructing 2 new locations, with the franchise team’s efforts expected to lay the groundwork for future revenue growth and accelerate franchise expansion.
- Digital Strategy Advancement: All stores now have unique websites and have launched DoorDash storefronts, enhancing customer touchpoints, and combined with improvements in POS systems and ERP, are expected to boost overall operational efficiency and customer experience.
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- Financial Highlights: Rocky Mountain Chocolate Factory reported a Q3 GAAP EPS of -$0.02, indicating ongoing efforts to restore profitability despite still being in the negative.
- Revenue Growth: The company achieved revenue of $7.5 million in Q3, reflecting a recovery in sales driven by improved market demand compared to the previous year.
- EBITDA Improvement: Q3 EBITDA reached $0.4 million, a significant turnaround from -$0.4 million in the same quarter last year, showcasing positive progress in gross profit enhancement and cost management.
- Cost Control: Total costs and expenses improved to $7.5 million, down from $8.6 million year-over-year, with savings realized across nearly all operational areas, indicating enhanced operational efficiency.
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- Financial Overview: Rocky Mountain Chocolate Factory reported a Q3 loss of $0.16 million, or $0.02 per share, which is an improvement from a loss of $0.85 million or $0.11 per share last year, indicating efforts to control losses.
- Revenue Decline: The company's revenue for the third quarter was $7.54 million, down 4.4% from $7.89 million last year, reflecting weak market demand and increased competition negatively impacting sales.
- Profitability Challenges: Despite the reduction in losses, the company continues to face profitability challenges and must implement effective strategies to restore profitability and increase market share, particularly in the current economic climate.
- Future Outlook: The company needs to monitor market trends and optimize its product mix to address the pressures from declining revenue while exploring new growth opportunities for long-term sustainable development.
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