$RMCFJul 14, 2026, 4:05 PM ETAI processed
RMCF Q1 FY2027: revenue down, loss widens and EBITDA turns negative
AI Summary
Rocky Mountain Chocolate Factory reported fiscal Q1 2027 revenue of $6.1M (vs $6.4M year-ago) and a net loss of $1.17M (EPS -$0.12) versus a $0.32M loss a year earlier; adjusted EBITDA swung to about -$0.6M from +$0.2M. Results were pressured by lower franchise/royalty fees and higher costs (cost of sales, G&A tied to a franchise website and third‐party delivery rollout, and higher retail operating costs from expanding company‐owned stores). Management named Allen Harper interim CEO and said priorities include fixing production/fulfillment, pursuing higher‐margin products and evaluating the company’s debt/working capital structure.
Positives
- Durango product and retail sales rose ~3% from price increases
- Interim CEO Allen Harper is an experienced board insider and major shareholder, signaling management continuity
- Company cites progress on ERP, franchise ordering and system initiatives intended to improve operations
Negatives
- Total revenue declined to $6.11M from $6.37M year‑over‑year
- Net loss widened to $1.17M (EPS -$0.12) and EBITDA turned negative (~-$0.6M)
- Higher costs from rollout of digital/franchise platforms and expanding company‑owned stores pressured margins