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
Anticipated Milestones
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 | $ | – |