Restaurant operator Sphera Franchise Group reports lower profitability in H1

Bucharest Exchange-listed Sphera Franchise Group (BVB: SFG), the company operating the KFC, Pizza Hut, Pizza Hut Delivery and Taco Bell chains in Romania, generated restaurant revenues of RON 754 million in the first semester, up 1.25% from RON 745 million in the same period last year. Adjusted for inflation, however, the group’s revenues contracted by nearly 10%, roughly in line with, but marginally better than, the deep plunge recorded by the country’s HoReCa sector.

Sales at KFC restaurants amounted to RON 647.4 million, equivalent to 85.8% of the total. Pizza Hut generated RON 50.0 million, while revenues from the Taco Bell franchise amounted to RON 55.7 million, up 11.3%.

The company marginally reduced its normalised pre-tax EBITDA by 0.61% in the first six months, to RON 52.51 million, from RON 52.83 million in the same period of the previous year.

During the same reporting period, restaurant expenses increased by 0.90%, to RON 698.07 million, from RON 691.87 million, while general and administrative expenses decreased by 1.61%, to RON 32.47 million, from RON 33.00 million.

Under these conditions, Sphera posted a normalised net profit of RON 13.67 million, 22.59% lower than the RON 17.66 million recorded in H1 2025.

The company’s market capitalisation is RON 1.8 billion (EUR 343 million), after its shares rose by 22% y/y.

(Photo source: Romolo Tavani/Dreamstime.com)