VSTD earnings analysis
What we found in VSTD's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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).
- 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).
- 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').
- 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).
- 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).
- 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).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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).
- 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).
- 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).
- 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).
- 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).
- 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').
What they said about what is next.
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).
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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