Sphera Franchise Group, the largest group in the food service industry in Romania, announces its third-quarter 2025 financial results, showcasing a resilient performance amid a challenging economic environment. The Group delivered the strongest Q3 in its history in terms of sales and achieved a notable improvement in profitability versus previous quarters, driven by rigorous cost-control measures and growing contributions from Italy and the Republic of Moldova.

Total sales remained robust at RON 405.9 million, marking a 6.1% increase compared to Q2 2025 and a slight 0.6% improvement over Q3 2024. However, rising costs – particularly salaries – continued to pressure margins, as previously noted in H1 2025. Despite this, Q3 showed a significant turnaround versus the first two quarters, supported by the Group’s ongoing implementation of strict cost-control measures. Consequently, restaurant operating profit reached RON 46.4 million, up 71.4% from the prior quarter, while EBITDA climbed to RON 43.6 million, an increase of 65.5%. Normalized net profit stood at RON 25.1 million, with the margin narrowing by 1.4 pp compared to Q3 2024.

In Q3 2025, sales in Romania reached RON 346.6 million, maintaining a stable level compared to the same period last year. Italy contributed RON 52.2 million, up 3.3% year-on-year, while the Republic of Moldova delivered an outstanding performance with RON 7.1 million in sales, marking a 24.8% increase versus 2024. The regional revenue mix shifted slightly compared to last year, reflecting a higher share from Italy and the Republic of Moldova, while Romania’s contribution saw a minor adjustment. Consequently, Romania accounted for 85.4% of the Group’s total sales in Q3 2025, Italy for 12.9%, and the Republic of Moldova for 1.7%.

KFC recorded a slight increase in sales, reaching RON 352.9 million (+0.1% YoY), and accounting for 86.9% of the Group’s total revenue. The brand’s performance was tempered by reduced discretionary spending following recent fiscal measures in Romania. Nevertheless, KFC remains the cornerstone of the Group, delivering stable results in a challenging economic environment.

Taco Bell continued to be the most dynamic brand in the portfolio, with sales up 13% YoY, to RON 27.2 million, representing 6.7% of total revenue. The brand strengthened its position as a leader in organic growth, driven by network expansion and rising popularity among younger consumers.

Pizza Hut remained in a phase of strategic realignment, posting sales of RON 25.3 million (-5.9% YoY), which accounted for 6.2% of the Group’s total revenue. This performance reflects cautious consumer behavior and intensified competition in the casual dining segment. Nevertheless, the efficiency measures implemented by the Group create favorable premises for stabilizing the brand’s performance.

Meanwhile, the first Cioccolatitaliani restaurant, opened in Italy, generated sales of RON 494 thousand (0.1% of total revenue), marking an important strategic milestone in diversifying the portfolio toward premium international concepts.

“The third quarter marks a clear return to a positive trajectory for our business and reaffirms once again the Group’s ability to adapt and perform in challenging economic conditions. After a first half shaped by inflationary pressures, we successfully restored profitability through rigorous cost management and strategic initiatives that are already delivering tangible results. Both EBITDA and operating profit registered significant growth compared to previous quarters, which reflects the solidity of our business model and financial discipline. Sphera Franchise Group has navigated difficult periods before consistently finding solutions to return to growth. Q3 results confirm that we are on the right path and that the Group’s financial foundation remains solid”, stated Valentin Budeș, CFO of Sphera Franchise Group.

Results for the first 9 months of 2025

For the first nine months of 2025, the Group reported total sales of RON 1,151.1 million, up 0.7% YoY. Normalized EBITDA reached RON 96.2 million (-25.5%), while normalized net profit stood at RON 42.8 million (-40.1%). The decline in net profit for the first three quarters of the current year compared to 2024 was driven by the impact of several factors: elevated operating expenses, particularly payroll costs, stagnant sales on Sphera Franchise Group’s main market, Romania, cautious consumer behavior amid political and economic uncertainty, and intensified competition for quick service restaurants (QSR).

“The first nine months of the year marked a difficult political, economic and subsequently fiscal backdrop in the Group’s main market, significantly affecting the entire HoReCa sector and our activity. Our commitment to shareholders remains firm: we continue to invest in network development, diversify our portfolio by introducing and expanding new brands, such as Cioccolatitaliani and Hard Rock Cafe, and intensify our efficiency efforts to deliver long-term value for customers and investors. The recent decision to distribute additional dividends of RON 40.2 million, equivalent to RON 1.04 gross per share, reflects our confidence in the Group’s long-term potential”, declared Călin Ionescu, CEO of Sphera Franchise Group.

The Group continued its network expansion with two new restaurants in October: a Taco Bell unit in Promenada Mall in Bucharest and a KFC Drive-Thru unit in Udine, Italy.

Sphera Franchise Group is one of six Romanian companies included in the top of Europe’s Long-term Growth Champions, compiled by the Financial Times and Statista. This top brings together the European businesses that have recorded the most significant revenue growth in the last decade, and Sphera Group is the only company in the Romanian food service industry present in this ranking.

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