Ramen chain Yoshiharu Global’s time as a Nasdaq-listed public company could be a short one, as it faces a potential delisting.
The restaurant company (Nasdaq: YOSH) was founded in 2016 by Chairman and Chief Executive James Chae, who is expanding across California and Las Vegas.
Buena Park-based Yoshiharu made its public debut in 2022, trading around $4 a piece. At press time, shares were up 75% to around $7. The company reported 2023 revenue of $9.2 million.
As of last month, Yoshiharu is on the verge of being delisted due to trouble with auditing and filing its financials.
In May, the company announced it would no longer be working with its former auditor BF Borgers CPA, which led to a re-release of its 2023 and 2022 financial statements and a delay in the quarterly report for the period ended March 31.
Yoshiharu ended up receiving a notification letter in June about failing to comply with Nasdaq listing rules for the late first quarter filing, which was not completed until Aug. 14.
The ramen chain reported second quarter results a few days later on Aug. 19 with sales rising 51% to $3.3 million.
Although the company caught up with its regulatory filings, Yoshiharu received another letter on Aug. 21 from Nasdaq regarding the recently reported amount of stockholders’ equity. The required minimum for continued listing is $2.5 million.
Total stockholders’ equity was $736,607 as of June 30, according to its second quarter filing. It had $1.2 million in cash.
According to the SEC filing, Yoshiharu has until Oct. 7 to provide “a specific plan to achieve and sustain compliance with all Nasdaq listing requirements.”
“The company is evaluating various courses of action to achieve compliance,” Yoshiharu said in the August filing.
The Buena Park-based chain is currently valued at $8.2 million.
Another Opening
As for California, Yoshiharu has two more restaurants under construction that are expected to open in the third quarter, including a location in San Clemente.
The chain has spent around $780,000 for the two locations under development as of June 30, according to SEC filings.
The ramen business last week made known its plans to enter the Korean BBQ category as another way to grow its restaurant pipeline, citing a “crossover appeal.”
“Through active discussions with KBBQ investors and store owners, it is clear that there is a significant market opportunity for Yoshiharu to tap into and establish a strong footprint,” Chae said in a statement.
Elsewhere: Burger Expansion
Irvine-based In-N-Out Burger broke ground this month on its highly anticipated new regional headquarters in Tennessee, marking the chain’s expansion into its 10th state and its first venture in the, eastern U.S. region.
“In-N-Out’s presence in Tennessee has been a long time coming, and we’ve been blessed that our fans there have shared their anticipation of our arrival with us,” Lynsi Snyder-Ellingson, chain president and owner, announced on her Instagram profile.
The 100,000-square-foot building in Franklin, Tennessee is expected to be completed in 2026 and will house various In-N-Out associates, the company said. The chain, Orange County’s third-largest restaurant chain, plans to launch its first Tennessee restaurants in the Nashville area in 2026.
