Sphera Franchise Group, the largest food service group in Romania, recorded consolidated sales of RON 362.6 million in the first quarter of the year, slightly below compared to the same period of 2024 (-0.9%). The adjustment comes after two years of accelerated growth, in the context of high uncertainty on the local market reflected in heightened prudent consumer behavior. Moldova and Italy registered positive evolutions.
“We are going through a period in which consumption is slowing down, and uncertainties related to taxation, inflation and economic policies are increasing. Sphera Group remains, however, solid and well-positioned, due to our diversified portfolio and product specificity. Despite the current uncertainties, our strategy is clear – growth, with a long-term vision and relying on the team’s experience that has proved in time that it can successfully manage difficult periods. However, we and the entire business environment need a predictable climate and reasonable measures, taken after analyzing the impact, to continue creating value, jobs and to contribute to long-term economic development”, stated Călin Ionescu, CEO, Sphera Franchise Group.
The expenses reached RON 352.1 million in the first quarter of the year, 4% higher compared to the same period of 2024. The category of expenses with the highest increase, 12.4%, was that of payroll and employee benefits, mainly due to the increase in the minimum wage in July 2024 and January 2025. Given the flat evolution of sales, the increase in expenses caused a contraction in profitability by approximately one-third, for restaurant operating profit and EBITDA. Net profit stood at RON 7.8 million, 63.6% lower than in the first quarter of 2024.
In terms of brands, KFC Romania generated sales of RON 259.8 million in Q1, 3.4% below the level of Q1 2024, due to external factors, but also having as reference an exceptional quarter for the Group, given the excellent performance in the first three months of last year. With its national coverage, KFC Romania was particularly impacted by consumers’ prudence in spending, amid increasing local and geopolitical uncertainty, compounded by the unexpected adverse weather, which kept customers indoors and disturbed delivery areas and times.
Pizza Hut contributed RON 27.2 million to total sales in the first quarter, down just 1% year-on-year. However, the network optimization, initiated at the end of 2023, continues to yield results: the company recorded a restaurant operating profit of RON 0.5 million, compared to a loss in Q1 2024.
Taco Bell had sales of RON 24.1 million, 15.6% higher, and doubled its profit compared to the first quarter of 2024. The brand is further proof that diversification is essential – its customers are mainly young and less responsive to local uncertainty. In addition, it is present only in large cities, while it is the consumers in smaller towns reacting swiftly to signals of possible decrease in income and becoming more cautious.
Foreign markets also continued to grow. KFC Italy contributed with sales of RON 44.7 million, up 3.3%, reconfirming the stability of a mature market. KFC Moldova’s potential remains, once again registering a double-digit growth in sales, of 23.2%, up to RON 6.8 million.
“These results come in an atypical context, marked by multiple disruptive factors. In this environment, we are focusing on strengthening the existing business and making carefully targeted investments in high-potential areas. The fundamentals remain solid: we have strong brands, teams that have proven themselves in difficult times, and loyal customers. We look ahead confidently and remain committed to generating sustainable value for shareholders and partners. We know the market is anything but linear, which is exactly why we rely on a sound strategy, strict financial discipline, and a long-term vision”, declared Valentin Budeș, CFO, Sphera Franchise Group
In the first quarter of 2025, delivery orders continued to grow, reaching 20% of the Group’s total sales. In absolute terms, delivery sales reached RON 73.5 million, up 5.5% year-on-year.
In Q1 2025, Sphera opened a new KFC drive-thru unit in Galați, marking a premiere for its network – the first restaurant equipped with solar panels. In April, it added another KFC in Mall Moldova, reaching 175 restaurants.
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