DURANGO, COLO. — Net income at Rocky Mountain Chocolate Factory, Inc. totaled $1,062,000, equal to 17c per share on the common stock, in the first quarter ended May 31, up 15% from $920,000, or 15c per share, in the same period a year ago.
Revenues were $9,658,000, up 12% from a year ago behind higher shipments of product to specialty market and franchise customers and an increase in retail sales.
“Perhaps the most significant new development during the first quarter involved our entry into a master license agreement with a strategic partner covering the entire country of Japan,” said Bryan Merryman, chief operating officer. “Our partner in this venture has extensive international experience operating retail units that sell confectionery products in Japan. We now have two stores open in Japan, where consumers have exhibited great enthusiasm for our brand and our products, and the agreement requires our strategic partner to open at least 10 new stores annually over the next 10 years, for a total of 100 stores in Japan by the expiration of the initial term of the agreement.”
During the first quarter, franchisees opened new Rocky Mountain Chocolate Factory stores in New Westminster, B.C.; Tokyo; Pleasanton, Calif.; and Salt Lake City. The company also opened Cold Stone Creamery co-branded stores in Rockaway, N.J., and West Lafayette, Ind.