Rocky Mountain Chocolate Factory, which makes confectionery and franchises confectionery stores, has announced a rise in net income to US$3.3m in the year ended 28 February 2005, compared with $2.3m in the previous year.
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Total revenues rose to $24.5m from $21.1m last year.
“Fiscal 2005 represented another year of progress towards our goal of building Rocky Mountain Chocolate Factory into the premier retail chocolatier in the United States,” said Frank Crail, founder, chairman and CEO.
“Our franchisees opened 36 new stores during fiscal 2005,” said Bryan Merryman, chief financial officer and chief operating officer. “This increased the total number of Rocky Mountain Chocolate Factory locations in operation to 283 as of February 28, 2005, and widened our lead as the largest chain of retail chocolate stores in the United States.”
“We expect franchisees to open at least 40 new stores in the current fiscal year, when the company anticipates earnings growth of 20% to 25% if current business and economic trends continue,” he said. “Trends critical to the Company’s anticipated earnings growth include, among others, unit openings, same store sales and same store pounds purchased from the factory.”
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By GlobalDataFor the three months ended 28 February 2005, revenues increased to $6.8m, compared with $5.9m in the fourth quarter of the previous fiscal year. Comparable-store sales at franchised retail locations rose 2.9%, when compared with the fourth quarter of FY2004, reflecting, among other things, increased customer traffic in retail venues where Rocky Mountain Chocolate Factory stores are located. The company believes this increase in customer traffic is indicative of a strengthening in the US economy.
Net earnings increased to $850,000 in the fourth quarter of FY2005, versus $628,000 in the corresponding period of the previous fiscal year.
