Chocolate and confectionery maker and franchise company Rocky Mountain Chocolate Factory has reported a rise in earnings to $5.4m for the first quarter ended 31 May 2005, compared with revenues of approximately $4.7m for the same period last year.
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Same-store sales at franchised retail outlets increased 4.1% during the most recent quarter. Same-store pounds of confectionery products purchased from the company’s factory by franchisees increased 0.7%.
Total retail sales for the company’s system of stores increased approximately 15% for the quarter to $21.9m compared with system-wide sales of $19.1m in the corresponding period of the previous year.
Net earnings for the first quarter increased $753,000, compared with $592,000 in the prior-year period.
“We are pleased to report another quarter of record earnings, particularly in light of the fact that earnings in the first quarter of last year were 55% higher than in the prior-year period,” said Bryan Merryman, chief operating officer and chief financial officer. “Franchisees opened five new stores, while the company opened one full-cooking kiosk unit, during the most recent quarter, and approximately 10-15 new stores are scheduled to come on line during the second quarter. Full year store openings should reach or exceed our target of 40 units, and we remain comfortable with our published guidance that full-year earnings should rise 20% to 25% from the record levels reported in fiscal 2005.”
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By GlobalData“I am also pleased to report that the new stores we have opened during the last twelve months have out-performed the stores opened in the previous twelve months by approximately 30%,” said Merryman. “We believe this is due to a growing recognition of the Rocky Mountain Chocolate Factory brand name throughout North America, which reflects itself in stronger sales at new retail stores. Our company is now the largest retail chocolatier in North America, in terms of the number of stores in operation, and we are proud to have achieved this status in a year during which earnings should set another record.”
