Rocky Mountain Chocolate Factory, Inc. (RMCF), a gourmet chocolate and confection manufacturer based in Durango, Colorado, has been in operation since 1982. An international franchiser and retail operator in the United States, Canada and the United Arab Emirates, the company manufactures an extensive line of premium chocolate candies and other confectionery products. Producing approximately 300 chocolate candies and other confectionery products using recipes developed primarily by its master candy maker, products include varieties of clusters, caramels, creams, mints and truffles, with an additional 100 confectionery treats during holiday seasons.
Rocky Mountain reported its operating results for the first quarter of FY2009. For the three months ended May 31, 2008, revenues declined slightly to approximately $7.1M. Same-stores sales at franchised retail outlets decreased 2.5% during the most recent quarter, while same-stores pounds of confectionery products purchased from the company’s factory by franchisees declined 14% compared to the same period prior fiscal year.
Total retail sales for the company’s franchised and company-owned stores increased 2.4% to $26.6M from the previous year. Net earnings for the three months ended May 31, 2008 declined 2.6% to $1,004,000 from the previous year. According to Bryan Merryman, chief operating officer and chief financial officer of Rocky Mountain, “Although same-store sales at franchised retail outlets were down 2.5% during the first quarter, royalty and marketing fees rose 11.3% and franchise fees more than doubled from prior-year levels…If recent economic and consumer spending trends continue but do not deteriorate further, we are likely to report a modest decline in earnings for the current fiscal year.”
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