Sphera Franchise Group (SFG) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated sales rose 4.2% year-over-year to RON 378 million, driven by KFC and Taco Bell growth, while Pizza Hut and Moldova operations declined.

• EBITDA was RON 24 million, broadly stable, but normalized EBITDA declined 3.0% year-over-year to RON 24.1 million due to margin pressures and network expansion.

• Net profit for Q1 2026 was RON 5.4 million, down 30.6% year-over-year, reflecting higher operating costs and network expansion.

• Strategic focus included optimizing the Pizza Hut network, expanding the multi-brand portfolio (notably wagamama), and investing in delivery and digital channels.

Financial highlights

• Consolidated sales reached RON 378 million (+4.2% YoY); Romania contributed RON 326 million (+5%), Italy RON 45.6 million (+2%), Moldova RON 6.2 million (-8%).

• KFC sales were RON 324.3 million (+4.2%), Taco Bell RON 27.1 million (+12.2%), Pizza Hut RON 26.3 million (-3.2%), Cioccolatitaliani RON 0.3 million.

• Restaurant operating profit declined 11.1% year-over-year to RON 25.4 million.

• Payroll and employee benefits increased 4.6% to RON 97 million, driven by new store openings.

• Marketing investment rose 27.6% year-over-year to RON 20.6 million, supporting new restaurants and traffic generation.

Outlook and guidance

• 2026 sales are projected at RON 1,696.4 million (+7.6% vs. 2025), with EBITDA estimated at RON 160 million (+8.2% YoY) and net profit at RON 72.7 million (+13.9% YoY).

• Planned CapEx for 2026 is RON 130 million, targeting 21 new restaurant openings.

• Free cash flow for 2026 is projected at RON 71.9 million, but expected to decrease to RON 32.8 million due to increased investments.

• Management remains committed to budgeted targets despite ongoing volatility and uncertainties.