Rocky Mountain Chocolate Factory

RMCF

Food Confectioners · Consumer Defensive

Exchange

NASDAQ Global Market

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through May 31, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Weak

Stability

Weak

Valuation

Data not available

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Winston Score History

The full picture

Rocky Mountain Chocolate Factory makes and sells chocolates, fudge, caramel apples, and other candy treats. It sells these products through a franchise network of retail stores, mostly located in malls, tourist destinations, and resort areas across the United States and a few international locations. The company is best known for its in-store candy-making experience, where customers can watch chocolates and confections being made fresh.

The company earns money in two main ways: selling chocolate products and ingredients to its franchisees, and collecting franchise fees and royalties. It is a small company with a market cap under $100 million and operates primarily in North America. Its franchise model gives it some built-in distribution, but the business currently loses money at the operating level, which is a serious concern. The key risk is its heavy reliance on mall and tourist foot traffic, which has been declining, and the company will need to find new ways to grow its store count and improve profitability.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-24.1% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-10.5% YoY

YoY Growth Rate

Earnings declining

Insider Activity

35.1%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Runway

~5 months

$1M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Short runway — potential dilution ahead through share issuance

Cash watch

Rocky Mountain Chocolate Factory has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

23.1%

Thin — 23.1% gross margin

Profit after running costs

Operating Margin

-14.2%

Losing money on operations — -14.2%

Return on the money invested

ROCE

-40.2%

Weak — -40.2% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-7.8%

Shrinking sales (-7.8% YoY)

Profit growth

EPS YoY

N/A

—

Data not available

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

—

Data not available

Spare cash per sale

FCF Margin

-11.6%

Burning cash (-11.6%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

1.59

Elevated debt (1.59)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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