Rocky Mountain's Sweet Turnaround: A Deep Dive into Record Expansion

DURANGO, CO – November 25, 2025 – Rocky Mountain Chocolate Factory, Inc. (Nasdaq: RMCF) today announced a landmark achievement in its ongoing transformation, securing commitments for 34 new franchise stores through four major area development agreements. The move, which represents an incremental growth of nearly 25% in its full franchise store count, marks the largest and most concentrated development surge in the company's 44-year history. The news was met with immediate investor approval, as the company's stock (RMCF) jumped 3.1% in Tuesday trading, signaling market confidence in the chocolatier's strategic revitalization.

This expansion is not a sudden impulse but rather the calculated result of a multi-year turnaround strategy. It hinges on a refreshed brand identity and the rollout of a new store prototype designed to re-center the customer experience on the craft of chocolate making. The development agreements, signed with sophisticated multi-unit operators, will expand the brand’s presence in key markets, including Southeast Florida, the Chicago metro area, Charleston, Denver, Santa Fe, and Central New Jersey.

A Strategy Takes Shape: From Turnaround to Growth

Today's announcement provides tangible evidence that Rocky Mountain Chocolate Factory's pivotal transition is bearing fruit. For years, the company has been focused on righting its financial ship and setting the stage for renewed growth. Recent financial disclosures underscore this progress. For the first quarter of fiscal year 2026, which ended May 31, 2025, the company reported a significant narrowing of its net loss to $0.3 million from $1.7 million in the prior-year period. More telling was the swing in EBITDA, which improved to a positive $0.2 million from a loss of $1.4 million a year earlier.

While total revenue remained flat at $6.4 million, the underlying improvements in operational efficiency and product gross profit pointed to a healthier core business. These results align with management's previously stated goals of returning to same-store-sales growth and expanding the total store count for the first time in many years. The 34-store commitment is the first major validation of this expansionary goal.

In a statement, Interim CEO Jeff Geygan positioned the milestone as a core part of the company's strategic vision. “It underscores meaningful progress in our transformational strategy,” he said. “Our new store model brings that spirit to life in a way that is relevant, scalable and positioned for national growth. We are committed to bringing this model to many more communities through sophisticated multi-unit operators.”

The Blueprint for Expansion: Reimagining the Chocolate Factory

At the heart of RMCF's growth engine is its new store prototype, a concept that moves beyond transactional retail to embrace the trend of experiential consumerism. The design is engineered to highlight the brand's heritage of handcrafted confectionery. Key features include a warm, inviting interior and a renewed focus on in-store sampling, but the centerpiece is the on-site chocolate-making process, which serves as both production and entertainment.

This approach directly addresses a modern consumer desire for authenticity and engagement. By making the craft visible, the company aims to forge a deeper connection with guests, conveying freshness and quality in a way that pre-packaged products cannot. The strategy appears to be a direct counter to the impersonal nature of mass-market retail, positioning each store as a local chocolatier destination.

Jeff Geygan emphasized this point, stating, “This is more than a redesign. It is a reaffirmation of our heritage and the craft that built this brand. Rocky Mountain Chocolate Factory was founded on the joy of making chocolate and sharing that experience with guests.” The first of these new prototypes recently held its grand opening on November 13 in Charleston, South Carolina, serving as a real-world proof-of-concept for the new developers. The success of that launch appears to have been a catalyst, giving operators tangible evidence of the model's appeal before committing to large-scale rollouts.

The Franchisee Vote of Confidence

Perhaps the most compelling aspect of this expansion is that it is being driven by experienced franchisees, including both new investors and long-time system veterans. The four development agreements represent a significant vote of confidence in the brand's new direction and leadership. According to David Denker, Vice President of Franchise Development, the model is “resonating with operators who want a brand with real craft, authenticity and a clear pathway to multi-unit growth.”

The commitments are geographically diverse and strategically significant:

• Chicago, IL: A seasoned franchisee with over a decade in the RMCF system has committed to a ten-store development plan, signaling strong belief from within. His newest location at One State Street is slated to open in December. “The direction of the brand has been completely revitalized,” he stated, citing new leadership and a clear vision as key factors.

• Southeast Florida: New operators Perla and James C. will launch a nine-store development across the region, bringing strong entrepreneurial experience. “We were drawn to the energy behind this rebrand and the quality of the product,” they commented.

• Charleston, SC, Denver, CO, and Santa Fe, NM: Following the successful launch of the first prototype in Charleston, franchisee Ross T. is expanding with eight additional stores across the three key markets, validating the new concept's power.

• Central New Jersey: Operator David S. is spearheading a seven-store plan to re-establish the brand's presence in the Northeast, a region where it once had a strong foothold.

This influx of investment from sophisticated, multi-unit operators is a crucial component of RMCF's strategy. It allows for faster, more disciplined expansion while leveraging the capital and operational expertise of partners who are deeply invested in the outcome. The company has further supported this by deploying dedicated business consultants to help franchisees optimize operations, marketing, and merchandising, creating a more robust support system for its partners.

Navigating a Competitive Confectionery Market

Rocky Mountain Chocolate Factory operates in a competitive landscape dominated by established premium players like See's Candies, Godiva, and Ghirardelli. In this environment, its strategic pivot toward experiential retail is not just a novelty but a critical differentiator. By blending its 44-year heritage with a modern, engaging store format, RMCF is carving out a unique market position that emphasizes both tradition and innovation.

The focus on securing multi-unit developers rather than single-store owners marks a strategic shift toward more scalable and sustainable growth. This approach enables deeper market penetration and builds a stronger, more consistent brand presence across entire regions. As the company continues to execute its turnaround, this record-breaking expansion serves as a powerful signal that Rocky Mountain Chocolate Factory is not just surviving but is aggressively positioning itself to capture a larger share of the premium confectionery market for years to come.