• Consolidated sales of RON 378 million in Q1 2026, +4.2% compared to Q1 2025
• KFC returns to growth in the Group’s main market, while Taco Bell continues to deliver the strongest performance in the portfolio, +12.2% in sales
• Restaurants opened in 2025 supported sales growth and the expansion of the Group’s network

Sphera Franchise Group (BVB symbol: SFG), the largest food service group in Romania, recorded a positive start to 2026, reporting consolidated sales of RON 378 million in Q1 2026, up 4.2% compared to the same period last year. Growth was driven by the return to positive performance of KFC Romania, the Group’s main business engine, and by the strong evolution of Taco Bell. Sales reflected the contribution of restaurants opened in 2025, four new units in Romania (KFC), Italy (KFC and Cioccolatitaliani), and the Republic of Moldova (KFC), as well as the continued attractiveness of the brands amongconsumers.

The Group’s profitability continued to reflect persistent inflationary pressures and accelerated investments in network development and brand support. The Group’s normalised EBITDA reached RON 24 million, down 3% compared to Q1 2025, while normalised net profit amounted to RON 5.5 million. Profitability was mainly impacted by higher operating expenses, increased labor and rental costs, intensified marketing investments, and the temporary effects associated with the accelerated expansion pace and the operational ramp‑up phase of newly opened restaurants. At the same time, the Group continued to optimize its indirect cost structure and maintain a solid operational profitability profile.

“In the first quarter of this year, we continued to grow despite operating in a market that remains far more selective than in previous years. We see consumers being more cautious with spending, operational costs still elevated, and widening differences between concepts that manage to generate traffic and those that require recalibration. In this context, our focus remains on developing brands that deliver traction and relevance in the market, as well as expanding our portfolio in segments where we see real long‑term growth potential. We expanded the Taco Bell network outside the country and recently added wagamama to our brand portfolio, joining Hard Rock Cafe and Cioccolatitaliani, in line with our strategy of diversification and consolidation”, said Călin Ionescu, CEO of Sphera Franchise Group.

After a more volatile 2025, Romania reconfirmed its position as the Group’s growth engine in Q1 2026, with sales of RON 326.1 million, up 4.8% year‑on‑year and contributing 86.3% of consolidated sales. Italy generated RON 45.6 million, up 2.0% year‑on‑year, supported by stable network performance and operational expansion. In the Republic of Moldova, revenues reached RON 6.2 million, temporarily affected by the relocation of the KFC Chișinău MallDova restaurant in March 2026.

At the brand level, KFC generated sales of RON 324.3 million in Q1 2026, up 4.2% year‑on‑year, and reported restaurant‑level operating profit of RON 26.2 million.

Taco Bell recorded the highest growth rate in the portfolio, with revenues up 12.2%, reaching RON 27.1 million compared to Q1 2025, supported by accelerated network expansion and the brand’s popularity among younger consumers. Operating profit reached RON 0.5 million, temporarily influenced by costs associated with rapid development and the growth phase of newly opened restaurants.

Pizza Hut reported revenues of RON 26.3 million, down 3.2% vs. Q1 2025, reflecting operational efficiency measures and network reorganization aimed at improving long‑term profitability and optimizing the cost structure.

Cioccolatitaliani, launched in 2025, contributed RON 0.3 million in Q1 2026, with the network still in an early development and expansion stage.

Restaurant‑level expenses increased by 5.2% compared to Q1 2025, reaching RON 353.5 million, slightly above the sales growth rate, driven by higher labor costs, rent, and brand‑building investments. Meanwhile, the Group continued implementing procurement efficiency and operational optimization measures, which improved the share of raw material costs in sales.

“The beginning of the year brought a stronger emphasis on enhancing profitability alongside sales performance, in a context where a substantial share of recently opened restaurants are still in a natural ramp-up phase, with initial investments gradually being reflected in margins. At the same time, we have continued to actively and responsibly manage cost increases related to wages, rents, marketing, and restaurant operations. Looking beyond short-term dynamics, we remain focused on optimizing the network and building a solid operational foundation that will support more efficient and sustainable growth in the coming quarters”, said Valentin Budeș, CFO, Sphera Franchise Group.

Overall, Q1 2026 results confirm the resilience of Sphera Franchise Group’s operational model and its ability to support sales growth and network expansion in a still‑volatile consumption and cost environment, while maintaining a healthy profitability base and favorable prospects for performance acceleration throughout the year.

Note: When analyzing the Group’s performance, management focuses on financial results excluding the impact of IFRS 16. Therefore, the basis of financial analysis is the results excluding IFRS 16.