Yoshiharu Reports First Quarter 2025 Financial Results
First Quarter 2025 Revenues Increase 25% to $3.5 Million
Cash Balance Increases 59% to $3.0 Million
Secured Financing Commitments of $3.56 Million and Converted $2.5 Million in Debt to Equity
Regains Compliance with NASDAQ Stockholders' Equity Requirement
BUENA PARK, Calif., May 05, 2025 (GLOBE NEWSWIRE) -- Yoshiharu Global Co. (NASDAQ: YOSH) ("Yoshiharu" or the "Company"), a restaurant operator specializing in authentic Japanese ramen & rolls, today reported results for the first quarter ended March 31, 2025.
First Quarter 2025 and Recent Operational Highlights
-- Secured financing commitments of $3.56 million from multiple parties and
converted $2.5 million in debt to equity and, as a result of such
financing transactions, regained compliance with the stockholders' equity
requirement for continued listing on Nasdaq.
-- Grand opening of a new restaurant in Menifee, CA brings the number of
locations to 15 with 1 additional location under development in Ontario,
CA.
-- Appointed Sungjoon Chae to its Board of Directors, a distinguished
architect and urban designer with extensive experience in shaping
sustainable and innovative spaces, to help support expansion.
-- Elected two new members to the Board of Directors:
-- Abe Lim, a seasoned real estate and investment professional with
over 21 years of experience.
-- Jae-Hyo Seo, an experienced legal practitioner and consultant.
Anticipated Milestones
-- Domestic and International Expansion
-- Open 2 -- 3 new locations focusing on Southern California, while
expanding to other locations including Boston, Seattle, and North
California.
-- Open new locations in Paris, London, and South Korea.
-- Expect to initiate sales of franchises in 2025
Management Commentary
James Chae, Yoshiharu's President, CEO and Chairman of the Board, commented, "The first quarter was highlighted by strong revenue growth and a strengthened balance sheet to fuel momentum and growth initiatives. In the first quarter, revenue grew 25% to $3.5 million, driven primarily by sales at our three new restaurants in Las Vegas, which we acquired in second quarter 2024.
"During the quarter we secured financing commitments of $3.56 million from multiple parties. We also entered into agreements with certain creditors to convert $2.5 million of existing debt obligations. These efforts served to increase stockholders' equity, improve our overall financial position by reducing total debt, principal and interest payments, and lower near-term cash needs. As a result, we were able to regain compliance with Nasdaq's minimum stockholders' equity requirement.
"Our newest location in fast-growing Menifee, California is now in operation, bringing us to a total of 15 locations in the U.S. Menifee is recognized for its rapid development and business-friendly environment, with the city committing over $100 million to traffic and infrastructure improvements, enhancing connectivity and accessibility. We have one additional location currently under development in Ontario, and continue to explore and evaluate new opportunities via corporate-owned restaurants, and through the development of a franchise program to accelerate national expansion and international openings.
"Looking ahead, we are focused on further improvement to top- and bottom-line growth, and additional strategic expansion in the U.S. and China. New initiatives such as diversifying our mix of service channels, adding kiosks across our stores, and utilizing cooking robots to reduce labor costs will further growth and efficiencies. We look forward to additional updates on our anticipated milestones in the weeks and months to come," concluded Chae.
First Quarter 2025 Financial Results
Revenues were $3.5 million for the three months ended March 31, 2025 compared to $2.8 million for the three months ended March 31, 2024, representing an increase of approximately $0.7 million, or 24.9%. The increase in sales for the three-month period was primarily driven by new sales at our three new restaurants in Las Vegas, which we acquired in second quarter 2024.
Total restaurant operating expenses were $3.4 million compared to $2.6 million in the prior year. The increase was primarily driven by costs incurred in generating increased revenues from the three new Las Vegas restaurants, primarily food, beverages and supplies, labor, and rent and utilities.
General and administrative expenses were approximately $1.3 million for the three months ended March 31, 2025 compared to $0.9 million for the three months ended March 31, 2024, primarily due to an increase in professional fees.
Operating loss increased to ($1.3) million compared to an operating loss of ($0.8) million for the prior year as a result of the increased operating expenses related to increased sales.
The Company's cash balance totaled $3.0 million on December 31, 2024, compared to $1.2 million on December 31, 2024.
For more information regarding Yoshiharu's financial results, including financial tables, please see our Form 10-Q for quarter ended March 31, 2025 filed with the U.S. Securities and Exchange Commission (the "SEC"). The Company's SEC filings can be found on the SEC's website at www.sec.gov or the Company's investor relations site at ir.yoshiharuramen.com.
About Yoshiharu Global Co.
Yoshiharu is a fast-growing restaurant operator and was born out of the idea of introducing the modernized Japanese dining experience to customers all over the world. Specializing in Japanese ramen, Yoshiharu gained recognition as a leading ramen restaurant in Southern California within six months of its 2016 debut and has continued to expand its top-notch restaurant service across Southern California and Las Vegas, currently owning and operating 15 restaurants.
For more information, please visit www.yoshiharuramen.com.
Forward-Looking Statements
This press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding our position to execute on our growth strategy, and our ability to expand our leadership position. These forward-looking statements include, but are not limited to, the Company's beliefs, plans, goals, objectives, expectations, assumptions, estimates, intentions, future performance, other statements that are not historical facts and statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in, or suggested by, these forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our filings with the SEC including our Form 10-K for the year ended December 31, 2024, and subsequent reports we file with the SEC from time to time, which can be found on the SEC's website at www.sec.gov. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Investor Relations Contact:
Larry W Holub
Director
MZ North America
YOSH@mzgroup.us
312-261-6412
Yoshiharu Global Co. and Subsidiaries
Unaudited Consolidated Balance Sheets
(unaudited) (audited)
March 31, December 31,
2025 2024
ASSETS
Current Assets:
Cash $ 3,011,038 $ 1,241,036
Accounts receivable 57,739 84,110
Inventories 143,181 139,422
-------------------------------------- ----------- -----------
Total current assets 3,211,958 1,464,568
-------------------------------------- ----------- -----------
Non-Current Assets:
Property and equipment, net 4,985,804 5,130,229
Operating lease right-of-use asset,
net 7,027,345 7,465,611
Intangible asset 477,947 491,223
Goodwill 1,985,645 1,985,645
Other assets 1,051,771 1,035,990
-------------------------------------- ----------- -----------
Total non-current assets 15,528,512 16,108,698
-------------------------------------- ----------- -----------
Total assets $ 18,740,470 $ 17,573,266
-------------------------------------- ----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 930,020 $ 843,322
Line of Credit 1,000,000 1,000,000
Current portion of operating lease
liabilities 1,061,224 975,210
Current portion of bank notes payables -- 1,366,350
Current portion of loan payable, EIDL -- 10,924
Loans payable to financial
institutions 3,332 34,282
Due to related party 9,333 732,710
Other payables 1,041,557 1,078,291
-------------------------------------- ----------- -----------
Total current liabilities 4,045,466 6,041,089
Operating lease liabilities, less
current portion 6,752,468 7,324,677
Bank notes payables, less current
portion 2,785,384 1,747,611
Loan payable, EIDL, less current
portion 412,639 404,490
Notes payable to related party 600,000 600,000
Convertible notes to related party -- 1,200,000
Total liabilities 14,595,957 17,317,867
-------------------------------------- ----------- -----------
Commitments and contingencies
Stockholders' Equity
Class A Common Stock -- $0.0001 par
value; 49,000,000 authorized shares;
1,662,245 and 1,300,197 shares issued
and outstanding at March 31, 2025 and
December 31, 2024 166 130
Class B Common Stock -- $0.0001 par
value; 1,000,000 authorized shares;
100,000 shares issued and outstanding
at March 31, 2024 and at December 31,
2023 10 10
Additional paid-in-capital 17,528,777 11,464,813
Warrant subscription receivable (750,000) --
Accumulated deficit (12,634,440) (11,209,554)
-------------------------------------- ----------- -----------
Total stockholders' equity 4,144,513 255,399
-------------------------------------- ----------- -----------
Total liabilities and stockholders'
equity $ 18,740,470 $ 17,573,266
-------------------------------------- ----------- -----------
Yoshiharu Global Co. and Subsidiaries
Unaudited Consolidated Statements of Operations
(unaudited)
For the three months ended March 31
-------------------------------------------
2025 2024
Revenue:
Food and beverage $ 3,511,789 $ 2,811,609
----------------------------- ---------------- -------------
Total revenue 3,511,789 2,811,609
----------------------------- ---------------- -------------
Restaurant operating
expenses:
Food, beverages and supplies 945,804 667,892
Labor 1,557,771 1,286,534
Rent and utilities 556,999 318,568
Delivery and service fees 129,667 143,361
Depreciation 227,047 170,682
----------------------------- ---------------- -------------
Total restaurant operating
expenses 3,417,288 2,587,037
----------------------------- ---------------- -------------
Net restaurant operating
income 94,501 224,572
----------------------------- ---------------- -------------
Operating expenses:
General and administrative 1,265,157 920,401
Related party compensation 42,154 42,154
Advertising and marketing 60,787 33,904
----------------------------- ---------------- -------------
Total operating expenses 1,368,098 996,459
----------------------------- ---------------- -------------
Loss from operations (1,273,597) (771,887)
----------------------------- ---------------- -------------
Other income (expense):
Other income 206,983 --
Interest (341,347) (104,318)
Total other income (134,364) (104,318)
----------------------------- ---------------- -------------
Loss before income taxes (1,407,961) (876,205)
Income tax provision 16,925 --
---------------------------- ---------------- -------------
Net loss $ (1,424,886) $ (876,205)
----------------------------- ---------------- -------------
Loss per share:
Basic and diluted $ (0.96) $ (0.65)
----------------------------- ---------------- -------------
Weighted average number of
common shares outstanding:
Basic and diluted 1,489,599 1,341,488
----------------------------- ---------------- -------------
Yoshiharu Global Co. and Subsidiaries
Unaudited Consolidated Statements of Cash Flows
(unaudited)
For the three months ended March 31
-------------------------------------------
2025 2024
Cash flows from operating
activities:
Net loss $ (1,424,886) $ (876,205)
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 227,047 170,682
Amortization 13,276
Gain on disposal of fixed
asset (50,000) --
PPP loan forgiveness -- --
RRF loan forgiveness -- --
Changes in assets and
liabilities:
Accounts Receivable 26,371 (94,135)
Inventories (3,759) (4,128)
Other assets (15,781) 346,962
Accounts payable and accrued
expenses 38,769 26,707
Due to related party (23,377) 56,921
Other payables (36,734) --
Net cash used in operating
activities (1,249,074) (373,196)
----------------------------- ---------------- -------------
Cash flows from investing
activities:
Purchases of property and
equipment (32,622) (356,642)
Net cash used in investing
activities (32,622) (356,642)
----------------------------- ---------------- -------------
Cash flows from financing
activities:
Proceeds from notes payable 2,137,773 --
Proceeds from borrowings (266,350) 812,000
Repayments on bank notes
payables (1,102,775) (84,130)
Repayment of loan payable to
financial institutions (30,950) (168,769)
Proceeds from sale of common
shares 2,314,000 64,149
Net cash provided by
financing activities 3,051,698 623,250
----------------------------- ---------------- -------------
Net (decrease) increase in
cash 1,770,002 (106,588)
Cash -- beginning of period 1,241,036 1,462,326
----------------------------- ---------------- -------------
Cash -- end of period $ 3,011,038 $ 1,355,738
----------------------------- ---------------- -------------
Supplemental disclosures of
non-cash financing
activities:
Supplemental disclosures of
cash flow information
Cash paid during the periods
for:
Interest $ 341,347 $ 104,318
Income taxes $ 16,925 $ --
----------------------------- ---------------- -----
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