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Rocky Mountain Chocolate Factory (RMCF). George Gothot Yuange Yang. Line of Operation. Manufacture 300 varieties of chocolate candy Franchises 316 stores nationwide Beginning to build kiosks Founded in 1981 Headquartered in Durango, Colorado Customers: Customers are retail location
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Rocky Mountain Chocolate Factory (RMCF) George Gothot Yuange Yang
Line of Operation • Manufacture 300 varieties of chocolate candy • Franchises 316 stores nationwide • Beginning to build kiosks • Founded in 1981 • Headquartered in Durango, Colorado • Customers: • Customers are retail location • Usually in tourist areas, malls, shopping centers • Gift-type product
Competition • Highly competitive chocolate market • Smaller players in market (relatively unknown brand) • Small cap (80.25 million dollars) • 200 Employees • Can adjust prices as long as it’s in line w/ prices of chocolate industry • Other Companies in competition: • Hershey Foods • Tootsie Roll Industries • John. B. Sanfilippo & Son • In higher end market, price is less of a factor • Company hasn’t change much in past couple of years
Earnings • General trend of increasing earnings • Decrease in 2002 possibly due to recession
Key Statistics • Debt - $0 • Return on Equity (5 Yr. Ave) – 22.28% • Return on Total Capital (5 Yr. Ave) – 21.22% • P/E – 16.30 • Volume – roughly 2000 • Market Cap – 80.25 million (small cap)
Recent Developments • Weak retail economy • 52 Week high - $18.04 • 52 Week low - $10.45 • Current Price - $12.42 • Since beginning of Jan. 2008, the price has been declining • 3rd quarter earnings declined from $1.33 million to $1.27 million • Mainly due to lower retail purchases from factory and to changing from specialty retails to warehouses • Feb. 19th, Buy back $3 million worth of stock