Rocky Mountain Chocolate net climbs 25% in Q1
July 13, 2010
by Eric Schroeder
DURANGO, COLO. — Rocky Mountain Chocolate Factory, Inc., an international franchiser of gourmet chocolate and confection stores, posted a 25% increase in net income in the first quarter behind higher same-store sales at franchised locations and increased factory product sales.
Net income in the quarter ended May 31 was $932,000, equal to 15c per share on the common stock, up from $748,000, or 12c per share, in the first quarter of fiscal 2010. Net sales for the quarter totaled $7,615,000, up 14% from $6,669,000.
The company said same-store sales at franchised retail outlets rose 0.7% during the quarter. Total factory sales rose 11%, primarily due to a 16% increase in shipments of product to customers outside the company’s network of franchised retail stores, an increase in sales of product to Cold Stone Creamery co-branded locations, and a 0.5% increase in same-store pounds purchased by domestic franchisees.