10-Q · November 19, 2024
Yoshiharu Global reported strong top-line growth with revenue of $9,152,530 for the nine months ended September 30, 2024, up from $6,714,429 a year earlier (+$2.44M, +36.3%). Restaurant-level profitability improved…
Earnings analysis · 10-K
VSTD earnings analysis
Filed March 27, 2025 · Our reading of the company's report
The latest report
The 10-K describes a company in expansion mode: as of December 31, 2024 Yoshiharu operated twelve (12) restaurants in California, operated three restaurants in Las Vegas (acquired April 20, 2024), and had one location…
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The 10-K describes a company in expansion mode: as of December 31, 2024 Yoshiharu operated twelve (12) restaurants in California, operated three restaurants in Las Vegas (acquired April 20, 2024), and had one location under construction. Management cites attractive restaurant-level economics (AUV $1.1M in 2023 and $1.0M in 2024) and a pipeline for additional corporate openings and franchises, but warns that it has incurred operating losses, faces continuing inflation/supply‑chain pressures into 2025, and is exposed to long-term lease obligations and concentration risk from a limited restaurant base.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Expanded footprint — CA + Las Vegas
As of December 31, 2024 the company 'operated twelve (12) restaurants in California and one location under construction' and 'also operated three restaurants in Las Vegas since April 2024' (10‑K).
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Average unit volume around $1.0M
Management reports AUV was '$1.1 million in 2023 and $1.0 million in 2024,' indicating ~stable unit-level sales (10‑K).
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Acquisition adds scale (Las Vegas APA)
The company acquired three existing restaurants by an Asset Purchase Agreement effective 'April 20, 2024' (10‑K; 'APA... effective as of April 20, 2024').
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Visible unit development economics
Management 'anticipate[s] approximately $350,000 - $550,000 in costs per new location in development' and 'has spent approximately $484,000 for the one location under construction/development as of December 31, 2024' (10‑K).
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Product/retail initiatives under consideration
The company is 'exploring the development of instant ramen noodles' for retail and 'intend[s] to explore partnerships with grocery retailers' and small-format kiosks (10‑K).
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IPO proceeds bolstered capital base
The filing notes the IPO generated 'gross proceeds of $11,760,000' and 'net proceeds ... approximately $10.3 million' (10‑K).
What to watch
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Ongoing operating losses and liquidity risk
The 10‑K states 'We have incurred operating losses and may not be profitable in the future. Our plans to maintain and increase liquidity may not be successful.' (10‑K).
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Inflation and supply‑chain pressure continuing into 2025
Management warns it 'expects these inflationary and other cost pressures to continue into and throughout the year 2025' and that a substantial increase in key food costs could 'materially and adversely affect our business' (10‑K).
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Small-scale concentration creates volatility
The company warns that its 'limited number of restaurants, the significant expense associated with opening new restaurants, and the unit volumes of our new restaurants makes us susceptible to significant fluctuations in our results of operations' (10‑K).
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Long-term non-cancelable lease exposure
The filing discloses the company is 'obligated under non-cancelable leases for the majority of our restaurants' and that 'the majority of our restaurant leases have lease terms of 10 years' (10‑K).
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Ambitious unit growth target may be hard to achieve
Management 'currently aim[s] to achieve in excess of 100% annual unit growth rate over the next three to five years,' but notes it 'cannot predict the time period' or guarantee achievement (10‑K).
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Related‑party acquisition concentration
The Las Vegas expansion arose from an APA with Mr. Jihyuck Hwang (a related party) and the APA 'provided for the purchase of specific assets... effective as of April 20, 2024' (10‑K; 'see Note 9 Related Party Transactions').
Management's outlook
The 10‑K does not provide numeric revenue or EPS guidance. Management discloses objectives and outlook items: it 'currently aim[s] to achieve in excess of 100% annual unit growth rate over the next three to five years,' expects inflationary and supply pressures 'to continue into and throughout the year 2025,' plans to 'initiate sales of franchises' (noted as expected in 2024), and defers specific financial outlook to periodic earnings releases (10‑K).
Earlier filings 4
10-Q · August 19, 2024
Yoshiharu Global filed its Form 10-Q for the period ended June 30, 2024 showing accelerating top-line growth (total revenue $6,137,005 for six months, up from $4,689,043) and positive operating cash flow of $621,458 for…
10-K · April 1, 2024
Yoshiharu Global Co. continues its aggressive expansion strategy as a leading operator of Japanese ramen restaurants, operating ten locations in California with plans for significant growth including a forecasted 100%…
10-Q · August 14, 2023
Revenue for the six months ended June 30, 2023 increased to $4,689,043 from $3,973,690 a year ago (+$715,353). Restaurant-level operating income turned positive to $364,208 vs a loss of $(107,851) a year ago, but…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.