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what it is
It makes chocolate, sells it through franchised stores, and collects royalties and product revenue from that network.
how it gets paid
Last year Rocky Mountain Choc made $30M in revenue. manufactured products to franchisees and licensees was the main engine at $18.0M, or 60% of sales.
why it's growing
Revenue grew 5.8% last year. The number that mattered was -$0.15 of EPS because sales growth means very little when each share still loses money.
what just happened
Latest reported revenue hit $21M, but EPS was still -$0.15, so bigger sales did not fix the profit problem.
At a glance
C balance sheet — red flag territory — real financial stress
20/100 earnings predictability — expect surprises
-$0.86 fy2024 eps est
$30M fy2024 rev est
20.1% operating margin
xvary composite: 25/100 — weak
What they do
It makes chocolate, sells it through franchised stores, and collects royalties and product revenue from that network.
The moat is the franchise footprint, not the brand alone. Rocky had 254 stores open as of November 30, 2025, with 251 run by franchisees or licensees and only 3 company-owned, so you get a business that can spread product through other people's storefronts. That said, scale is the joke here: $30 million of annual revenue against a public market listing is tiny.
How they make money
$30M
annual revenue · their business grew +5.8% last year
manufactured products to franchisees and licensees
$18.0M
company-owned stores prepared on premises
$3.0M
company-owned stores plant-made products
$3.0M
initial franchise fees and royalties
$6.0M
The products that matter
franchises branded chocolate stores
Franchise Operations
~$18M · about 60% of revenue
this is the larger piece of the roughly $30M revenue base. it should be the steadier part of the model if the store base is healthy. that "if" is doing work.
core model
manufactures and sells chocolate products
Manufactured Products
~$12M · about 40% of revenue
product gross profit doubled to $1.4M last quarter, but that happened on just $7.5M of quarterly revenue. improvement is real. scale is still tiny.
margin watch
Key numbers
20.1%
operating margin
Operating margin → profit after running the business → so what: Rocky loses about 20 cents for every $1 of sales, per.
$30M
annual revenue
This is the whole top line. For a public company, $30 million is tiny, which leaves little room for mistakes.
$9M
long-term debt
Debt → money the company owes → so what: $9 million is a big number against a $22 million market cap.
254
store count
The chain spans 254 locations across 36 states and the Philippines, which gives Rocky reach even if the income statement still looks rough.
Financial health
C
strength
- balance sheet grade C — very weak — significant financial distress
- risk rank 5 — safer than 5% of stocks
- price stability 20 / 100
- long-term debt $9M (29% of capital)
C — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for RMCF right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Latest reported revenue hit $21M, but EPS was still -$0.15, so bigger sales did not fix the profit problem.
EDGAR shows the latest reported period at $21 million of revenue, up 175% vs. prior year, while EPS fell to -$0.15. Consensus data also shows the last earnings print at -$0.09, so the reported inputs across sources are messy, but the clean takeaway is the same: Rocky is still losing money.
$21M
revenue
-$0.15
eps
20.1%
operating margin
the number that mattered
The number that mattered was -$0.15 of EPS because sales growth means very little when each share still loses money.
source: EDGAR and company earnings data, 2026
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What could go wrong
RMCF does not need a dramatic failure to hurt you. it just needs one more bad combination of soft sales, tight gross margin, and a fixed $9M debt load.
med
cocoa and ingredient costs squeeze an 11% gross margin
when gross margin is 11%, you do not need a huge commodity shock to feel it. chocolate is a real input-cost business, and there is not much cushion here.
if margin slips again, the recent jump to $1.4M of quarterly product gross profit stops looking like progress and starts looking like a blip.
med
$9M of debt is heavy for a $22M equity story
RMCF carries $9M of long-term debt against a market cap of about $22M. that is roughly 41% of the equity value sitting in debt before you even debate growth.
if another weak quarter hits, management has less room to absorb it. for you, that means more downside sensitivity to execution misses.
med
sales keep shrinking faster than margins improve
quarterly revenue fell from $7.9M to $7.5M while the company still posted a $0.2M net loss. that is the whole problem in one sentence.
a franchise-and-product model needs volume. if sales keep sliding, cost work alone will not repair the earnings story.
three things are colliding at once: $9M of debt, an 11% gross margin, and a business that just posted $7.5M in quarterly revenue after a 5% decline. that is why this stock feels fragile.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
quarterly revenue back above $7.5M
the turnaround argument needs sales stabilization first. if revenue cannot hold above the latest $7.5M quarter, the rest of the story gets much harder to believe.
risk
gross margin versus ingredient costs
11% gross margin leaves very little cushion. watch whether the recent jump to $1.4M of product gross profit can hold if cocoa or freight costs move the wrong way.
calendar
Q4 FY2026 earnings on may 19, 2026
this is the next hard checkpoint. you want to see whether the company can pair margin improvement with a less fragile top line.
trend
debt moving lower from $9M
a tiny company survives mistakes more easily when debt is falling. if debt stays stuck while losses continue, equity holders are carrying the risk load.
Analyst rankings
earnings predictability
20 / 100
in human-speak, analysts do not think these numbers are stable. expect surprises, and not the fun kind.
risk rank
5
safer than only 5% of stocks. that is another way of saying this name sits very close to the risky end of the public market.
source: institutional data
Institutional activity
institutional ownership data for RMCF is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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