Yoshiharu Provides Corporate Update and Fourth Quarter and Full Year 2024 Financial Results
Regains Compliance with NASDAQ Stockholders' Equity Requirement
Fourth Quarter 2024 Revenues Increase 47% to $3.7 Million
Fourth Quarter Net Income Increase to $0.5 Million
Full Year 2024 Revenues Increase 39% to $12.8 Million
Two New Restaurants Bring the Number of Locations to 15 with 1 Additional Location Under Development
BUENA PARK, Calif., April 02, 2025 (GLOBE NEWSWIRE) -- Yoshiharu Global Co. (NASDAQ:YOSH) ("Yoshiharu" or the "Company"), a restaurant operator specializing in authentic Japanese ramen & rolls, today provided a corporate update and results for the fourth quarter and full year ended December 31, 2024.
On March 31, 2025, Yoshiharu announced that it had received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that it has regained compliance with the minimum stockholders' equity requirement under Nasdaq Listing Rule 5550(b)(1). Based on the Company's financing commitments, debt restructuring and additional financing commitments announced on March 20, 2025, and March 26, 2025, respectively, Nasdaq determined that the Company complies with the minimum stockholders' equity requirement and this matter is now closed.
James Chae, Yoshiharu's President, CEO and Chairman of the Board, commented, "Operationally, we recently took the opportunity to strengthen our balance sheet and, as a result, are now in compliance with Nasdaq's minimum stockholders' equity requirement and our security will continue to be listed and traded on The Nasdaq Stock Market. The new financing commitments of $3.56 million from multiple parties and conversion of $2.5 million in debt to equity provides additional momentum in the months to come as we execute on our growth initiatives."
Anticipated Milestones
Domestic and International Expansion
Open 2 - 3 new locations focusing on Southern California, while expanding to other locations including Boston, Seattle, and Montana.
Open new locations in Paris, London, and South Korea.
Expect to initiate sales of franchises in 2025
Fourth Quarter 2024 and Recent Operational Highlights
Grand opening of two new restaurants in Menifee, CA, and San Clemente, bringing 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.
Entered into a non-binding Memorandum of Understanding ("MoU") with Chengdu Octaday Entertainment Group to introduce Yoshiharu Global's cuisine in Sichuan Province, China, with a rich and diverse culture and home to over 83 million people.
Entered into a non-binding MoU with Xing Sheng Group to introduce a new flagship Yoshiharu restaurant in Shenyang, China, home to over 43 million people.
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, to regain compliance with the stockholders' equity requirement for continued listing on Nasdaq.
Full year 2024 revenue increased 39.3% to $12.8 million.
Management Commentary
Mr. Chae continued, "The fourth quarter of 2024 was underscored by strong revenue growth and profitably, driven by continued momentum with the opening of new U.S. locations, and entered into agreements to expand our geographic footprint internationally. In the fourth quarter, 47% revenue growth to $3.7 million and net income of $0.5 million was achieved primarily by our restaurant service across Southern California, Las Vegas and diversified mix of service channels, including takeout and delivery. We have successfully optimized operating expenses while maintaining a strong Average Unit Volume ("AUV") comparable to previous periods, despite continued headwinds from input costs, consumer price sensitivity, and higher cost of capital.
"In the U.S., we recently celebrated the grand opening of our newest US location in Menifee, one of the fastest-growing cities in Southern California. The new location benefits from Menifee's rapid development and business-friendly environment. With one more location currently under development in Ontario, Canada, we continue to explore and evaluate new restaurant developments via corporate-owned restaurants, and through the development of a franchise program to accelerate national expansion and international openings.
"We also welcomed our new Board member Sungjoon Chae, who brings his deep expertise in architecture and design, specifically spaces that coalesce aesthetics and functionality, to support our global expansion efforts.
"Looking ahead, we are focused on further improvement to top- and bottom-line growth, and additional strategic expansion in the U.S. and China. Although the food and beverage markets are facing challenges such as increased input costs, consumer price sensitivity, and higher cost of capital, we have been able to improve operating expenses and have maintained a competitive AUV comparable to prior periods. 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.
Fourth Quarter 2024 Financial Results
Revenues increased 47.4% to $3.7 million compared to $2.5 million in the prior year period. The increase was primarily driven by sales generated by the three new Las Vegas restaurants acquired in April 2024.
Total restaurant operating expenses were $2.6 million compared to $2.3 million in the prior year. The increase was primarily driven by increases in revenues from the three new Las Vegas restaurants.
Operating income increased to $0.2 million compared to an operating loss of ($0.7) million for the prior year as a result of the increase in revenue related to sales generated by the new restaurant in San Clemente and seasonal effect.
Net income was $537,268 compared to $8,597 in the prior year primarily due to the increase in revenue while costs stayed comparatively the same.
Full Year 2024 Financial Results
Revenues increased 39.3% to $12.8 million compared to $9.2 million in the prior year. The increase was primarily driven by sales generated by the three restaurants in Las Vegas acquired in April 2024, and from sales generated by two other new restaurants opened in February and October 2024, which were offset by a decrease in sales generated by other restaurants.
Total restaurant operating expenses were $11.3 million compared to $8.9 million in the prior year. The increase was due to increases in in revenue. As a percentage of the revenue, the operating expenses were 88% compared to 96% in the prior period.
Operating loss improved to ($2.6) million compared to a loss of $(3.5) million in the prior year.
Net loss was $2.7 million compared to a net loss of $3.0 million in the prior year. The improvement was primarily due to the increase in revenue.
The Company's cash balance totaled $1.2 million on December 31, 2024, compared to $1.5 million on December 31, 2023.
For more information regarding Yoshiharu's financial results, including financial tables, please see our Form 10-K for year ended December 31, 2024 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 HolubDirectorMZ North
Yoshiharu Global Co. and SubsidiariesConsolidated Balance Sheets
December 31,
2024
2023
ASSETS
Current Assets:
Cash
$
1,241,036
$
1,462,326
Accounts receivable
84,110
-
Inventories
139,422
73,023
Total current assets
1,464,568
1,535,349
Non-Current Assets:
Property and equipment, net
5,130,229
4,092,950
Operating lease right-of-use asset, net
7,465,611
5,459,708
Intangible asset
491,223
-
Goodwill
1,985,645
-
Other assets
1,035,990
1,931,357
Total non-current assets
16,108,698
11,484,015
Total assets
$
17,573,266
$
13,019,364
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses
$
843,322
$
647,811
