Rocky Mountain Chocolate Earnings Call Nuggets: Product Name and Strategy

Rocky Mountain Chocolate (NASDAQ:RMCF) recently reported its third quarter earnings and discussed the following topics in its earnings conference call.

Product Name

James Fonda – Sidoti & Company: Did you guys give the name of the cereal company?

Franklin E. Crail – Chairman, President and CEO: We did not.

James Fonda – Sidoti & Company: Okay. Is there a reason for that or…?

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Franklin E. Crail – Chairman, President and CEO: The only reason that we haven’t is that we’re coordinating a marketing press release when the product is launched. And so, we’ll announce the company when we do that.

James Fonda – Sidoti & Company: I guess, what is the anticipated growth of the store openings other than the Japanese franchises?

Franklin E. Crail – Chairman, President and CEO: Are you talking domestic standalone Rocky Mountain Chocolate Factory’s?

James Fonda – Sidoti & Company: Yeah…

Franklin E. Crail – Chairman, President and CEO: We see – we continue to see with this environment, maybe five to 10 stores opening annually.

Strategy

George Whiteside – SWS Financial Services: My question relates to your having in effect created a roll-up vehicle. I presume that your motivation was twofold. Number one is to bulk up the frozen yogurt operation, where it would be a bigger factor in the marketplace; and the second was to gain access to an independent management team is that a fair assessment?

Franklin E. Crail – Chairman, President and CEO: I think that is a fair assessment, George. There was a number of other reasons that I outlined in the prepared remarks as well, but those two are correct.