Yoshiharu Global Co. Reports $3.5 Million Revenue with Increased Losses in Latest Quarter

Yoshiharu Global Co. reported a revenue of $3.5 million for the three months ended March 31, 2025, marking a 24.9% increase from $2.8 million in the same period of the previous year. This growth was primarily attributed to the acquisition of three restaurants in Las Vegas in the second quarter of 2024. However, the company experienced a net loss of $1.4 million, compared to a loss of $876,205 in the prior year, reflecting a 62.6% increase in losses. The increase in losses was driven by higher operating expenses, including a significant rise in general and administrative costs.

Total restaurant operating expenses rose to $3.4 million, up 32.1% from $2.6 million in the previous year. Key contributors to this increase included food, beverage, and supply costs, which surged by 41.6% to approximately $946,000, and labor costs, which increased by 21.1% to $1.6 million. Rent and utilities expenses also saw a notable rise of 74.8%, primarily due to the new restaurant acquisitions. Despite these increases, the company reported a net operating income of $94,501, down 57.9% from the previous year.

Yoshiharu's operational metrics indicate a growing customer base, with the company currently operating 15 restaurants and two additional locations under development. The company aims to achieve over 100% annual unit growth over the next three to five years, although it acknowledges the risks associated with site selection and market competition. The company is also exploring franchise opportunities and plans to enhance brand awareness through targeted marketing efforts.

In terms of financial health, Yoshiharu reported a net cash inflow from financing activities of $3.1 million, primarily due to private placements and borrowings. The company has faced challenges with its stockholder equity, which fell below the required minimum for continued listing on Nasdaq, but it has since regained compliance. The company’s liquidity remains a concern, as it continues to rely on external financing to support its operations and growth initiatives.

Looking ahead, Yoshiharu Global Co. is focused on increasing profitability by optimizing labor costs and leveraging its growing scale. The management team, led by CEO James Chae, is committed to enhancing the dining experience and expanding the menu offerings, including potential new product lines such as instant ramen noodles for retail distribution. The company remains optimistic about its growth trajectory, despite the challenges posed by the competitive restaurant industry and economic conditions.