KFC franchise owner in Romania sees higher sales but lower profit

Sphera Franchise Group, the company that operates the KFC, Pizza Hut and Taco Bell franchises in Romania, recorded a 37% turnover growth in 2017, to EUR 125 million. The company’s net profit, however, went down by 35%, to EUR 6.9 million as the expenses increased faster than the revenues. The company’s payroll expenses went up the most, by 58%, while the rent costs also increased by 51%, according to the group’s preliminary financial report for 2017. The KFC restaurants in Romania generated the highest sales, namely EUR 105.5 million, and a net profit of EUR 13.5 million. Sphera Franchise Group listed its shares on the Bucharest Stock Exchange after an initial public offering (IPO) in which the company’s shareholders raised EUR 62 million from selling 25% stake. The group currently has a capitalization of EUR 316 million. editor@romania-insider.com