DURANGO, Colo., July 14, 2026 (GLOBE NEWSWIRE) -- Rocky Mountain Chocolate Factory, Inc. (Nasdaq: RMCF) (the "Company" or "RMCF"), America's Chocolatier® since 1981, is reporting financial and operating results for its first quarter fiscal 2027, which ended May 31, 2026.
"Since stepping into the Interim CEO role, I have been encouraged by the commitment of our team, the engagement of our franchisees and the support of our Board," said Allen Harper, Interim CEO. "I want to thank Jeff for his leadership and recognize the work he, Carrie and the broader team have done to strengthen the foundation of the business, including the important progress made across pricing, production efficiency, ERP and store-level systems, franchisee ordering capabilities and customer engagement. While our first quarter results reflect continued near-term challenges, I believe we are entering a phase where execution, alignment and accountability will be critical."
"Working closely with the Board and leadership team, our immediate focus is on improving production, strengthening fulfillment and distribution, pursuing higher-margin product opportunities and evaluating ways to address the Company's debt structure and working capital at favorable terms. These priorities will guide us in the coming quarters as we focus on product quality, service and franchisee support to better position Rocky Mountain Chocolate Factory for sustainable growth. Most importantly, we want our employees, franchisees and customers to feel renewed energy around this brand. We are working hard to ultimately make chocolate fun again."
Mel Keating, chairman of the Board, added, "Al brings decades of leadership experience in consumer-facing businesses and a deep connection to the city of Durango, its people and this Company through his service on the Board and as one of the Company's largest shareholders. His familiarity with our business, franchise network and strategic priorities allows him to lead from day one as the Company remains focused on disciplined execution and long-term value creation for shareholders."
Fiscal First Quarter 2027 Financial Results vs. Fiscal First Quarter 2026
Total revenue was $6.1 million for the first quarter of fiscal 2027 compared to $6.4 million in the first quarter of fiscal 2026. A 3% increase in Durango product and retail sales from price increases was offset by lower royalty and marketing fees under revised franchise agreements.
Total product and retail gross profit was $0.2 million in the first quarter of fiscal 2027 compared to $0.3 million in the first quarter of fiscal 2026, reflecting lower packaged product sales.
Total costs and expenses were $7.1 million in the first quarter of fiscal 2027, up from $6.5 million in the first quarter of fiscal 2026. The increase was driven by higher cost of sales, higher general and administrative costs tied to the franchise website and third-party delivery platform rollout, and higher retail operating costs with the increase from two to four company-owned stores, partially offset by lower franchise and sales and marketing costs.
Net loss was $1.2 million or $(0.12) per share for the first quarter of fiscal 2027, compared to a net loss of $0.3 million or $(0.04) per share in the first quarter of fiscal 2026.
EBITDA was $(0.6) million in the first quarter of fiscal 2027 compared to $0.2 million in the first quarter of fiscal 2026.