Call of the Week: A Brand for Sweet-Toothed Investors

Robert Maltbie |

In this week's analysts meeting for Singular Research, we initiated coverage on Rocky Mountain Chocolate Factory, Inc. (RMCF), a highly regarded chocolate and confectionary retail brand. Despite its small national footprint, the company's retail locations are very underpenetrated in the U.S., and it is diversifying its revenue base with frozen yogurt products and breaking into new international markets.

Some of the reasons why we like company's potential include:

  • Rocky Mountain Chocolate Factory is an international franchisor, chocolate and confectionery manufacturer, and retailer.
  • The company is very underpenetrated in North America and has ample room for franchisee driven expansion.
  • The company maintains a conservative balance sheet with solid working capital and no debt.
  • The company has paid a dividend since 1988 and the current dividend yield is 4.0%.
  • We forecast EPS of $0.72 in FY:13, growing to $0.88 in FY:14. Our 12-month price target is $14.00.

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Singular Research

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
CAPX Elkhorn S&P 500 Capital Expenditures Portfolio 24.35 0.00 0.00 1
RMCF Rocky Mountain Chocolate Factory Inc. 10.18 -0.01 -0.10 5,366


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