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Player Avatar nottodayboy (41.53) Submitted: 9/22/2007 12:26:58 PM : Underperform Start Price: $12.14 RMCF Score: +33.05

This company is in deep trouble. 50% of their franchisees are struggling or failing and managements commitment to the franchise system is doubtful. They own very few company stores which is indicative of managements lack of confidence in the business model. They are being out-competed in every retail venue in which they have stores. RMCF's same store sales and same stores poundage have been negative quarter after quarter and year after year for several years now. Store closings have accelerated and store openings have decelerated.

Additionally, some members of RMCF's BOD have questionable pasts including one(Clyde Engle) who has even spent some time in jail.

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Member Avatar EnigmaDude (85.16) Submitted: 1/8/2008 12:22:21 PM
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Don't believe this "basher"! Store openings have been increasing. This is from the today's (Jan. 8, 2008) 3Q earnings report:

"New store openings accelerated in the most recent quarter, with franchisees opening 14 new stores in time for the seasonally important Christmas selling season. This compared with 11 new store openings in the first half of the fiscal year. Twenty-five new stores were opened during the first nine months of the fiscal year, and 5 new stores were opened in December. An additional 4 to 9 stores are scheduled to open in January and February, bringing the number of store openings for the fiscal year to 34-39, which is slightly below our previously stated goal of 35-40 new store openings."

They missed the analyst's estimates by 5% and share price dropped, but that just makes this stock a better value.

Member Avatar nottodayboy (41.53) Submitted: 1/24/2008 3:59:35 PM
Recs: 1

Same store sales came in at -2.5%, same store poundage came in at -9% and seventeen stores closed in 9 months. This stock has no analyst so the earnings estimates only come from RMCF management and they missed HORRIBLY! RMCF stock is now trading at a four year low! This company is doomed!!Calling someone a "basher" does not change the facts bubba!

Member Avatar Stromprophet (< 20) Submitted: 2/13/2009 3:25:22 PM
Recs: 1

I can see you don't know how to read a 10-Q though. While every retailer is at risk economically in the current environment this one has almost no debt on the balance sheets. Working capital available is 6.5 million dollars, they have an line with the bank of 5 million dollars, and plenty of cash on hand. Even with current reduced earnings they can be the full dividend free from cash flow. 2008 earnings will likely be around 0.60 a share for full year, and they pay out 0.40 on the dividend. Shipments both outside and to franchise stores are down. But so is every other retailer in America with the exception of Walmart, Amazon, and McD. And it's hard to be doomed when you are still posting profit every quarter. Just a thought. Another thought...tell me what % of McDs are franchised? 80%. And 30% of McDs earnings come from Franchised Stores. In RMCF case 98% of the stores are Franchised yet only 18% of the Earnings come from it. 82% of the Earnings come from selling their product outside their stores and in the 5 they own. Because they're not relying on the store model only. Think of Apple...they don't really need stores. But they do have them. They sell a product to anyone who buys, directly, indirectly, online, etc. RMCF sales products online, ships them to other retailers, ships them to franchise stores, sells them out of their own store, etc, etc. I could slow down...or you could take a longer look at the 10-Q

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