Sphera Franchise Group, the largest food service group in Romania, posted consolidated sales of RON 745.2 million in the first six months of 2025, up 0.7% compared to the same period of last year. The Group managed to slightly increase its sales amid sluggish consumer demand due to portfolio diversification across brands and markets.

“In the first half of 2025, we navigated one of the most complex environments in recent years, marked by fiscal changes, rising costs and volatile consumer sentiment. Even so, our diversified portfolio across countries and segments allowed us to secure the level of sales. The opening of our first Cioccolatitaliani in Italy and the expansion of KFC in Romania reflect our commitment to resilience and long-term development,” said Călin Ionescu, CEO of Sphera Franchise Group.

At Group level, normalized EBITDA stood at RON 52.8 million, down 33% year-on-year, mainly due to wage increases, along with higher operating costs across the industry. The evolution comes also on the back of a strong comparative base of H1 2024. These also reflected in the normalized net profit, which stood at RON 17.7 million.

By brand, the evolution of KFC was flat, the sales amounting to RON 641.7 million in the first semester. Growth was tempered by weaker discretionary spending in Romania, driven by political instability and the discussions around the imminent fiscal measures to address the budget deficit.

Taco Bell maintained a strong dynamic, with sales increasing by 18.4% YoY to RON 50.1million in H1, due to the continued appeal of the brand especially towards the young generation. The new restaurant opened in the second half of 2024 further supported the growth. The brand continued to massively improve its profitability, with restaurant operating profit up by 49.7%, to RON 4.7 million, and net profit posting a 3-digit increase of almost 254%.

Pizza Hut stabilized in H1, recording RON 53.4 million in sales and narrowing operating losses by almost 75% compared to H1 2024. Even if the pace of the recovery has slowed due to the unfavorable context, the positive trend amid challenging times is indicative of the effectiveness of the network optimization measures implemented at the end of 2023. ​

By region, Romania remains the largest contributor to the Group’s sales, with RON 638.5 million, representing 85.7%, a level similar to that H1 2024. KFC Italy maintains its steady pace, with sales advancing by 3.9% YoY to RON 93.1 million. At the same time, KFC Moldova delivered the strongest growth in the Group, fueled by the opening of the third store in Chisinau. Sales went up by 24.5%, to RON 13.6 million, indicating the still untapped potential of the country.

With regard to the results of the second quarter alone, Sphera Group’s sales amounted to RON 382.6 million, up 2.3% year-on-year. Normalized EBITDA was RON 28 million, 28.5% lower than in Q2 2024, influenced by cost dynamics and subdued consumption in June. The weaker consumer demand was first visible in Q4 2024 and persisted in Q1 2025, due to a mix of factors, both internal and external, from uncertainty surrounding the elections to geopolitical volatility and, starting with June, perspectives of an extremely tight fiscal policy. This trend is expected to continue throughout the year, as the program to address the budget deficit unfolds, spearheaded by measures directly affecting consumption, such as VAT increase.

By brand, KFC sales increased by 1.1% in Q2 2025 compared to Q2 2024, reaching RON 330.4 million. Growth was tempered by the above-mentioned factors, and further impacted by the Group’s exceptional performance in 2024, which created a strong base effect.

Pizza Hut contributed RON 26.2 million to the total Q2 turnover, reflecting a 2% YoY increase, while Taco Bell reported a robust, 21.2% YoY growth, reaching RON 26 million in revenues in Q2 2025. Cioccolatitaliani, with Sphera’s first Italian store opened on June 20, generated sales of RON 52K during short period it was operational in Q2 2025.

“Our financial results show both the resilience of our portfolio and the pressures we are managing across the business. We remain disciplined in controlling costs, carefully calibrating pricing and mix, and preserving profitability as much as possible in a high-cost environment. We continue to deliver significant positive EBITDA, showcasing our capacity to safeguard performance despite unprecedented headwinds,” said Valentin Budeș, CFO of Sphera Franchise Group.

Operationally, the Group continued to expand its network in the first six months of 2025. In Romania, three new KFC restaurants were opened in Iași, Pitești and Galați, bringing the local KFC network to 110 units. In June, the Group also launched its first Cioccolatitaliani store in Riccione, Italy, marking its entry into the premium dessert category. At the end of June, Sphera operated 177 restaurants across Romania, Italy and the Republic of Moldova.

On June 6, Sphera Group paid shareholders dividends from the undistributed net profit of financial years 2023-2024, fixing a gross dividend per share at RON 1.09.

Sphera Franchise Group adjusts its financial estimates for 2025, adopting a cautious approach, by calibrating the forecasts to current market conditions. Thus, it anticipates obtaining total revenues between RON 1.6 and 1.65 billion, slightly lower than those initially budgeted, in the context of macroeconomic pressures and a volatile consumer environment. Normalized EBITDA (without IFRS 16 impact) is anticipated at RON 140–150 million. Despite the budget revision, the company maintains its operational efficiency objectives and a solid financial position, with a normalized net profit estimated at RON 63–70 million, and a free cash flow, estimated at RON 62–72 million.

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.