Rocky Mountain Chocolate Factory ( (RMCF) ) has provided an update.

Rocky Mountain Chocolate Factory reported fiscal second-quarter 2027 results for the period ended August 31, 2026, showing flat revenue of $6.7 million year over year but a swing to positive product and retail gross profit and improved gross margin due to pricing actions and production efficiencies. Despite these operational gains, costs rose on a larger company-owned store base and higher franchise and administrative expenses, widening the net loss to $1.3 million and the EBITDA loss to $0.7 million.

During the quarter, the board formed a strategic committee to explore alternatives, including a possible sale or merger, and subsequently executed a $6.6 million sale-leaseback of its Durango manufacturing facility on October 16, 2026, using the net proceeds to repay high-cost debt bearing 12% interest, while incurring $0.3 million in prepayment penalties. On the same date, the company entered into a new $2.0 million working capital term loan with Alpine Bank maturing in 2028, signaling a significant reshaping of its capital structure that could affect its financial flexibility and potential strategic transactions.

Operationally, management highlighted improved production and execution, with August 2026 the highest production and shipping month of the calendar year and enhanced reporting and ERP capabilities giving better visibility into demand, inventory and production needs. Store footprint expansion continued with the acquisition of the Chino Hills location in July 2026, bringing company-owned stores to five, and new franchised openings in Folsom, California, and Tinton Falls, New Jersey, as the company seeks sustainable growth and long-term shareholder value.