Yoshiharu Reports Second Quarter 2024 Financial Results
BUENA PARK, Calif., Aug. 19, 2024 (GLOBE NEWSWIRE) -- Yoshiharu Global Co. (NASDAQ: YOSH) ("Yoshiharu" or the "Company"), a California-based restaurant operator specializing in authentic Japanese ramen, reported results for the second quarter ended June 30, 2024.
Second Quarter 2024 and Recent Operational Highlights
-- Closed the acquisition of three Las Vegas restaurants, boosting the
Company's annual revenues by $6 million
-- Announced auditor transition away from BF Borgers CPA
-- Six months 2024 revenue increased 30.9% to $6.1 million
-- YoY improvements across operating loss, adjusted EBITDA, and net loss as
the Company continues to efficiently manage general administration
expenses
-- Restaurant-level contribution increased to $668,000 for the six-months
ended June 30, 2024 from $616,000 in the same period last year
Management Commentary
"We are pleased with the top-line growth and improvement in our bottom-line as we remain keen on hitting profitability in the near future," said James Chae, Yoshiharu's President, CEO and Chairman of the Board. "Although the food and beverage markets are facing challenges such as increased input costs, consumer price sensitivity, and higher cost of capital, Yoshiharu has been able to improve operating expenses and has maintained a competitive AUV comparable to prior periods. We are also working to add kiosks across our stores and utilize cooking robots to reduce labor costs to further manage our expenses. The timely acquisition of the three Las Vegas restaurants this past April has played a crucial role in executing our growth strategy. These locations benefit from a strong residential customer base and a history of profitability, and we are focused on seamlessly integrating the Yoshiharu brand into this vibrant market. We are also making significant strides to open another California restaurant and look forward to announcing the grand opening in the near future. With 14 restaurants now under our operating belt and a dedicated approach to cost management, we are well-positioned to expand the Yoshiharu brand across California and Las Vegas, driving positive results and efficiency for the remainder of the year."
Second Quarter 2024 Financial Results
Revenues increased 50.5% to $3.3 million compared to $2.2 million in the prior year period. The increase was primarily driven by the three new Las Vegas restaurants acquired in April 2024.
Restaurant-level contribution margin was 12.1% and remained relatively constant period to period through challenging food and beverage market conditions.
Total restaurant operating expenses were $3.1 million compared to $2.0 million in the prior year period. The increase was due to increases in food, beverages and supplies, labor, rent and utilities, and depreciation.
Operating loss improved to $0.9 million compared to a loss of $1.0 million in the prior year period. Adjusted EBITDA, a non-GAAP measure defined below, was $(0.7) million compared to $(0.7) million in the prior year period. Net loss was $1.1 million compared to a net loss of $1.0 million in the prior year period. The slight decrease was primarily due to a slight decrease in revenues of existing ramen restaurants.
Six Month 2024 Financial Results
Revenues increased 30.9% to $6.1 million compared to $4.7 million in the prior year period. The increase was primarily driven by three new Las Vegas restaurants acquired in April 2024.
Restaurant-level contribution margin was 13.0% and remained relatively constant period to period through challenging food and beverage market conditions.
Total restaurant operating expenses were $5.7 million compared to $4.3 million in the prior year period. The increase was due to increases in food, beverages and supplies, labor, rent and utilities, and depreciation.
Operating loss improved to $1.7 million compared to a loss of $2.0 million in the prior year period. Adjusted EBITDA, a non-GAAP measure defined below, was $(1.2) million compared to $(1.4) million in the prior year period. Net loss was $2.0 million compared to a net loss of $2.2 million in the prior year period. The improvement was primarily due to management's efforts to control general and administrative expenses.
The Company's cash balance totaled $1.2 million on June 30, 2024, compared to $1.4 million on December 31, 2023.
For more information regarding Yoshiharu's financial results, including financial tables, please see our Form 10-Q for quarter ended June 30, 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 https://www.sec.gov/ or the Company's investor relations site at https://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 14 restaurants.
For more information, please visit www.yoshiharuramen.com.
Non-GAAP Financial Measures
EBITDA is defined as net income (loss) before interest, income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA plus stock-based compensation expense, non-cash lease expense and asset disposals, closure costs and restaurant impairments, as well as certain items, such as employee retention credit, litigation accrual, and certain executive transition costs, that we believe are not indicative of our core operating results. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by sales. EBITDA, and Adjusted EBITDA are non-GAAP measures which are intended as supplemental measures of our performance and are neither required by, nor presented in accordance with, GAAP. The Company believes that EBITDA, and Adjusted EBITDA provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and operating results. However, these measures may not provide a complete understanding of the operating results of the Company as a whole and such measures should be reviewed in conjunction with its GAAP financial results.
The Company believes that the use of EBITDA, and Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, you should be aware when evaluating EBITDA, and Adjusted EBITDA that in the future the Company may incur expenses similar to those excluded when calculating these measures. In addition, the Company's presentation of these measures should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. The Company's computation of Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate Adjusted EBITDA in the same fashion.
Because of these limitations, EBITDA, and Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. The Company compensates for these limitations by relying primarily on its GAAP results and using EBITDA, and Adjusted EBITDA on a supplemental basis. You should review the reconciliation of net loss to EBITDA, and Adjusted EBITDA in the Company's SEC filings and not rely on any single financial measure to evaluate its business.
The full reconciliation of net loss to EBITDA and Adjusted EBITDA is set forth in our Form 10-Q for the quarter ended June 30, 2024 which can be found on the SEC 's website at https://www.sec.gov/ or the Company's investor relations site at https://ir.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, 2023, 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. Such risks, uncertainties, and other factors include, but are not limited to: the risk that our plans to maintain and increase liquidity may not be successful to
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