Rocky Mountain Chocolate Factory, Inc. (RMCF) AI Stock Analysis

Headquartered in Durango, Colorado, Rocky Mountain Chocolate Factory, Inc. operates as a confectionery franchisor, manufacturer, and retail operator across five segments: Franchising, Manufacturing, Retail Stores, U-Swirl Operations, and Other. The company produces approximately 400 chocolate candies and confectionery items, including clusters, caramels, creams, toffees, mints, and truffles, alongside 15 varieties of caramel apples, ice cream, and coffee. It operates two company-owned stores, 99 licensee-owned stores, and 159 franchised stores across 37 states and internationally in South Korea, Panama, and the Philippines. It also manages three company-owned and 63 franchised or licensed cafes across brands like U-Swirl and Yogurtini, plus a strategic alliance with Edible Arrangements, LLC.

Revenue has contracted in recent periods, dropping 7.0% in FY2026 to $27.5M from $29.6M in FY2025. Gross margin has steadily compressed from 30.4% in FY2022 to 10.2% in FY2026. The operating margin stood at -13.0% in FY2026, leading to a net income of -$4.6M and an EPS of -$0.91. For the trailing twelve months ended May 31, 2026, revenue stood at $27.2M, with a net profit margin of -19.8% and an EPS of -$0.64. In the latest quarter ended May 31, 2026, quarterly revenue fell 4.1% year-over-year, while quarterly earnings dropped 86.0%.

As of May 31, 2026, Rocky Mountain Chocolate Factory held $609,000 in cash and short-term investments alongside total debt of $8.3M, leaving net debt at $7.7M. Shareholders' equity was $4.1M against total assets of $19.3M, resulting in a debt-to-equity ratio of 2.00 and a current ratio of 1.13. For FY2026, operating cash flow was -$1.8M and capital expenditures were $569,000, leading to free cash flow of -$2.4M. Over the last five years, the company's share count increased by 52.9%.

RMCF shares closed at $0.91 on October 16, 2026, reflecting a market capitalization of $8.6M and an enterprise value of $15.9M. The stock trades at a price-to-sales multiple of 0.3x, compared to 0.7x for the median of its US-listed Consumer Defensive peers. Its forward P/E is 15.9x versus the peer median of 14.3x, while its EV-to-revenue ratio is 0.6x. The stock has dropped 39.7% over the past year and 89.0% over five years, lagging the S&P 500 benchmark returns of 16.8% and 83.0%, respectively.

Wall Street coverage reflects a mean price target of $18.00, which is 1878.0% above the last close of $0.91. The company has logged 0 EPS beats over the past four quarters. In terms of ownership, insiders hold 35.7% of shares, institutions own 35.0%, and short interest accounts for 2.1% of the float.

This page is an AI-written research summary of Rocky Mountain Chocolate Factory, Inc. (RMCF). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: RMCF income statement, RMCF balance sheet, RMCF key metrics, RMCF chart. See the RMCF stock overview for the latest quote and news.