Rocky Mountain Chocolate Factory Stock Price, News & Analysis

Institutional Shareholder Services (ISS) has recommended that Rocky Mountain Chocolate Factory (NASDAQ: RMCF) shareholders elect the AB Value-Radoff Group’s independent nominee. The report emphasizes the need for boardroom changes, criticizing the current board for risk to its reputation and lack of relevant experience. ISS highlights the importance of adding a female director with franchising expertise to tackle operational challenges. The AB Value-Radoff Group, holding 17.6% of shares, asserts that the current board's leadership has led to significant value destruction, advocating for a new direction for the company.

AB Value Management LLC and Bradley L. Radoff, owning approximately 17.6% of Rocky Mountain Chocolate Factory, Inc. (RMCF), expressed dismay over the Board's recent public statement, which they view as a derailment of an agreed settlement. They criticized the Board for not engaging privately and raising concerns about the Audit Committee Chair's past employment. Despite the discord, they submitted a new female director candidate with extensive experience and await the Board's response. They emphasize the need for change if the candidate is rejected.

AB Value Management LLC and Bradley L. Radoff, owning approximately 17.6% of Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF), announced their agreement to the company’s latest settlement terms. This includes the addition of their nominee to the Board of Directors, aiming for enhanced corporate governance and long-term value creation. They intend to finalize a cooperation agreement swiftly for the benefit of all stockholders. The group emphasizes their commitment to improving business practices while fostering a positive relationship with the company.

Rocky Mountain Chocolate Factory (NASDAQ:RMCF) has reiterated its settlement offer to AB Value after the latter reduced its board nominee count to one. The proposal includes increasing the board size to seven, appointing the nominee, and reimbursing AB Value $600,000 for expenses. This aims to halt a costly proxy fight, which has been a recurring issue for the company. AB Value's shift to one nominee reinforces the board's stance that the settlement is in the best interest of all shareholders. RMCF emphasizes its commitment to resolving this matter amicably.

Rocky Mountain Chocolate Factory (NASDAQ:RMCF) has appointed Allen Arroyo as Chief Financial Officer, effective August 1, 2022. Arroyo, a seasoned financial executive with 30 years of experience in the food and hospitality industries, succeeds Bryan J. Merryman. Arroyo has a proven track record in corporate finance and strategic operations. His past roles include CFO at Blaze Pizza, where he significantly expanded the brand. The company operates over 325 locations internationally and aims to enhance shareholder value under Arroyo's leadership.

AB Value Management and Bradley Radoff, holding 17.6% of Rocky Mountain Chocolate Factory (NASDAQ: RMCF), propose to elect Mary Bradley to the Board of Directors at the Annual Meeting on August 18, 2022. Her experience in consumer brands, particularly with Godiva and Starbucks, is deemed essential for the company's turnaround. The group criticizes incumbent director Brett Seabert for his lack of relevant experience and claims his presence has contributed to significant value destruction. The election of Bradley aims to enhance board diversity and operational effectiveness.

Rocky Mountain Chocolate Factory (RMCF) announced its upcoming 2022 Annual Meeting of Stockholders on August 18, highlighting the importance of voting on the WHITE proxy card. The company asserts that its management team, led by new CEO Rob Sarlls and a refreshed Board, is successfully navigating post-COVID challenges, with most franchisees reporting stronger sales. However, RMCF faces a disruptive proxy fight initiated by the AB Value group that threatens its recovery strategy. The company encourages stockholders to support current nominees to ensure continued progress and stability.

AB Value Management LLC and Bradley L. Radoff, holding 17.6% of Rocky Mountain Chocolate Factory's shares (NASDAQ: RMCF), urge shareholders to vote for Mary Bradley and Correne Loeffler to the Board of Directors at the upcoming Annual Meeting on August 18, 2022. They criticize current governance, alleging dysfunction and lack of diversity. Key concerns include the reappointment of Chair Jeffrey Geygan, the perceived inexperience of director Brett Seabert, and the failure to enhance board diversity. The group stresses the need for new leadership to improve corporate governance and shareholder value.

Rocky Mountain Chocolate Factory reported a 3.1% increase in total revenue to $7.8 million for Q1 2023, up from $7.6 million in Q1 2022. Factory sales rose 2.3% to $5.2 million, driven by increased sales to franchised stores. However, net income fell to a loss of $115,000 or $(0.02) per share, compared to a profit of $580,000 or $0.09 per share a year earlier. Adjusted EBITDA decreased to $927,000. The company opened six new franchises, signaling a recovery post-pandemic.