13 July 2010 – Rocky Mountain Chocolate Factory, which franchises chocolate and confectionery stores and manufactures an extensive line of premium chocolates and other confectionery products, has reported its operating results for the first quarter of the financial year 2011.

For the three months ended 31 May 2010, total revenues increased 14.2 percent to approximately $7.6 million, compared with approximately $6.7 million in the first quarter of 2010. Net income increased 24.6% to approximately $932,000 versus approximately $748,000 last year. The improvement in earnings was primarily due to higher same-store sales at franchised locations, increased factory product sales, a 110 basis-point improvement in factory margins, and increases in franchise fees, royalty income and marketing fees, when compared with the prior-year period.

"We are pleased to report a 24.6% increase in earnings during the first quarter despite continued economic uncertainty and only modest gains in customer traffic at retail shopping malls and in other retail venues where our stores are located," comments Bryan Merryman, COO and CFO of Rocky Mountain Chocolate Factory.

He adds, "Although our franchisees have continued to grapple with a very difficult credit environment, two domestic franchised Rocky Mountain Chocolate Factory stores, along with seven Cold Stone Creamery co-branded locations, opened in the most recent quarter.”