Rocky Mountain Chocolate Factory Reports Significant Progress on Company's Transformation in 2022
Durango, Colorado--(Newsfile Corp. - December 15, 2022) - Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF) (the "Company," "we" or "RMCF"), a leading manufacturer and international franchiser of gourmet chocolates and other confectionary products, today announced significant progress on its bold turnaround and transformation strategy for its brand and franchise which begun with CEO Rob Sarlls joining the Company seven months ago in May 2022.
"Our transformation plan is about creating value for all stakeholders - including investors, employees, current and potential franchisees, business partners, and customers in the communities in which we maintain a presence," Sarlls said. "While we are building upon our 40+ year legacy, we are breaking and redefining existing paradigms when necessary to seek not only operational excellence, but increased relevancy with today's aspiring entrepreneurs as well as the ever discerning confection consumer."
- C-Suite and senior executive leadership team composition is nearly complete, currently including new Chief Financial Officer, Vice President - Marketing & Sales, and Senior Supply Chain/Optimization Advisor - Focused on revitalizing growth and profitability through a long-term strategic transformation; emphasizing issues including manufacturing, supply chain, omni-channel marketing, and franchisee network expansion
- Strengthened relationships with franchisees are increasing dialogue and feedback - Recently formed Franchisee Advisory Council collaborating on systemwide best practices; biennial franchisee conventions changing to annual basis beginning in 2023; CEO Rob Sarlls completing half of fifty planned franchisee visits around the country since May
- Long-term strategic transformation plan to be announced following the close of Fiscal 2023 - Includes in-depth refreshing of nearly everything: the brand, the stores, our franchisee models, and our product portfolio
- Conducting full review of the yogurt business to determine steps required to optimize the business model and its performance
- Fiscal 2024 operating plan -- Management is finalizing a cost savings plan for the factory which will contribute to annual EBITDA growth; increasing average unit volume; factory operating margins moving closer to pre-COVID levels
About Rocky Mountain Chocolate Factory, Inc.
Rocky Mountain Chocolate Factory, Inc., (the "Company"), ranked number one on Newsweek's list of "America's Best Retailers 2022" in the chocolate and candy stores category and headquartered in Durango, Colorado, is a leading international franchiser of gourmet chocolate, confection and self-serve frozen yogurt stores and a manufacturer of an extensive line of premium chocolates and other confectionery products. The Company, its subsidiaries and its franchisees and licensees currently operate 326 Rocky Mountain Chocolate Factory and self-serve frozen yogurt stores across the United States, Qatar, the Republic of Panama, and The Republic of the Philippines. The Company's common stock is listed on the Nasdaq Global Market under the symbol "RMCF."
This communication includes statements of the Company's expectations, intentions, plans and beliefs that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to come within the safe harbor protection provided by those sections. These forward-looking statements involve various risks and uncertainties. The statements, other than statements of historical fact, included in this communication are forward-looking statements and many may be identified by the use of forward-looking words such as "will," "intend," "believe," "expect," "anticipate," "should," "plan," "estimate," "potential," "prospects," "build" or similar expressions. For a detailed discussion of the risks and uncertainties that may cause the Company's actual results to differ from the forward-looking statements, please see the section entitled "Risk Factors" contained in Item 1A. of the RMCF's Annual Report on Form 10-K for the fiscal year ended February 28, 2022, filed with the SEC on May 27, 2022, as amended by Amendment No. 1 on Form 10-K/A filed with the SEC on June 28, 2022. These forward-looking statements apply only as of the date hereof. As such they should not be unduly relied upon for more current circumstances. Except as required by law, the Company undertakes no obligation to release publicly any revisions to these forward-looking statements that might reflect events or circumstances occurring after the date of this communication or those that might reflect the occurrence of unanticipated events.
Sean Mansouri, CFA
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/148146
SOURCE Rocky Mountain Chocolate Factory
Released December 15, 2022