Sphera Franchise Group (stock symbol SFG), the largest group in the food service industry in Romania, closes 2025 with total sales of RON 1,570.9 million, up 1.5% year-on-year, demonstrating resilience in a context marked by pressure on consumer spending, particularly in the first half of the year. The solid performance in the second half of the year, culminating in Q4 as the strongest quarter of 2025 in terms of sales, confirms operational stabilization and a gradual recovery in profitability indicators, supported by improved restaurant-level efficiency metrics, growth of the Taco Bell brand, and strong momentum in the Republic of Moldova.

2025 also saw an escalation of cost pressures, particularly in the first half, driven by higher payroll expenses and other operational costs. Restaurant-level costs grew by 5.1%, outpacing the rate of sales growth. However, in the second half of the year, especially in Q4, the Group recorded a stabilization of its cost structure and improved operational efficiency.

Normalized Group EBITDA stood at RON 147.8 million (-16.4% YoY), with an EBITDA margin of 9.4%. Normalized net profit came in at RON 72.7 million (-25.2% YoY), impacted by higher operating expenses and the cautious consumer spending trend in Romania during the first part of the year.

“2025 was a year of adjustment and consolidation for Sphera. We navigated a challenging economic environment in the first six months, with significant cost pressures and more subdued consumer spending driven by fiscal measures and persistent inflation. However, we responded swiftly with operational efficiency measures and financial discipline, and the effects of these decisions became visible in the second half, particularly in Q4 2025, when we recorded a clear stabilization in performance and a recovery in commercial momentum. We maintained our leadership position in the Romanian market, which remains the Group’s primary growth engine, while our Italian operations returned to a positive trend and the Republic of Moldova continued to deliver solid results. We enter 2026 on a more stable base and with an operational structure better calibrated to support business growth,” said Călin Ionescu, CEO of Sphera Franchise Group.

Romania continued to account for the largest share of 2025 sales, generating revenues of RON 1,346.2 million, representing 85.7% of total sales, up 1.0% YoY. Italy contributed RON 196.4 million (12.5% of total), up 2.4% YoY, while the Republic of Moldova posted the strongest growth, with sales of RON 28.3 million (1.8% of total), up 19.7% YoY.

KFC generated 2025 sales of RON 1,356.6 million, representing 86.4% of the total, up 0.6% YoY, confirming its role as the Group’s main pillar. The operating profit of KFC Romania restaurants (USFN Romania) reached RON 131.4 million (-18.6% YoY), KFC Italy (USFN Italy) contributed RON 9.4 million (-48.0% YoY), and KFC Moldova (USFN Moldova) RON 4.4 million (+1.1% YoY).

Taco Bell continued to be the fastest-growing brand, with 2025 sales of RON 106.7 million (6.8% of total), an increase of 16.2% YoY, confirming its growing contribution to the Group’s momentum. Taco Bell’s growth reflects the brand’s appeal among younger urban consumers and the implementation of a balanced development plan across Romania’s major cities.

Pizza Hut recorded sales of RON 106.8 million last year (6.8% of total), down 1.5% YoY, and reported an operating loss of RON 2.1 million. Excluding RON 2.7 million in normalized items, operating profit was RON 0.6 million, compared to RON 1 million the previous year, a context that supported management’s decision to continue optimizing the network to restore profitability through the closure of seven units in the coming months.

Cioccolatitaliani, a brand added to the portfolio in 2025, contributed RON 0.8 million to annual sales and recorded an operating loss of RON 1.5 million, in line with its first year of operations.

Q4 2025 was the strongest quarter of the year in terms of sales

In Q4 2025, Sphera Franchise Group reported total sales of RON 419.8 million, up 3.7% year-on-year, marking the strongest quarterly performance of 2025. The result reflects a gradual stabilization of demand in the Group’s primary market, Romania, following an extended period of consumer spending pressure driven by fiscal measures implemented to reduce the budget deficit. In Q4 2025, same-store sales grew 1.1% YoY, reversing the negative trend seen in previous quarters. The strongest increases were recorded by USFN Moldova (+8.1%), CFF (+4.3%) and USFN Romania (+1.8%). Declines were recorded at USFN Italy (-3.6%) and ARS (-1%).

“Although the cautious consumer behavior observed since the beginning of Q4 2024 persisted through year-end, our pricing strategy and value-focused positioning helped maintain stable traffic levels and volumes. The Q4 performance confirms the effectiveness of the operational measures implemented throughout the year and provides a solid starting point for 2026, in a context where a stabilization of the fiscal environment and improved macroeconomic conditions could support a recovery in demand,” said Valentin Budeș, CFO of Sphera Franchise Group.

At the market level, Romania generated Q4 sales of RON 361 million, up 4.3% YoY, reinforcing its contribution to the Group’s performance and outpacing Italy, which recorded RON 51.1 million (-0.9% YoY). The Republic of Moldova continued to deliver solid results, with growth of 8.3% YoY to RON 7.7 million. In terms of breakdown, Romania accounted for 86% of total quarterly sales, Italy 12.2%, and the Republic of Moldova 1.8%.

KFC recorded sales growth of 3.1% YoY to RON 362 million, returning to a positive trend. Sales recovery was particularly driven by Romania, after a temporary slowdown in previous quarters caused by a decline in discretionary spending amid political instability and fiscal measures introduced to reduce the budget deficit.

Taco Bell continued to be the fastest-growing brand, with an advance of 15.5% YoY and sales of RON 29.4 million. Pizza Hut recorded sales of RON 28.1 million in the same reporting period (-1% YoY).

Cioccolatitaliani, through its first and only unit operated in Italy, generated sales of RON 250,000 in Q4, representing 0.1% of the total.

In 2025, Sphera opened seven new restaurants: three KFC units in Romania, two Taco Bell units in Romania, and one KFC and one Cioccolatitaliani in Italy.

In October 2025, the Group expanded its portfolio by adding the Hard Rock Cafe franchise, part of Hard Rock International. The Group intends to open five Hard Rock Cafe restaurants in Brașov, Timișoara, Iași, Cluj (Romania), and Chișinău (Republic of Moldova) over the course of five years, starting in 2026. This development strengthens the Group’s position in the foodservice market through expansion into the global lifestyle brand segment.

The Group also announced the expansion of the Taco Bell brand in the Republic of Moldova, through the opening of a food court restaurant at the Shopping MallDova shopping center in Chișinău. The new unit is set to open in the second quarter of 2026.

Share performance on the Bucharest Stock Exchange

After several consecutive quarters of growth, the SFG share price remained stable in Q4 2025, recording a 0.4% increase to RON 37.75 as of December 31, 2025, compared to RON 37.6 on September 30, 2025. For the full year 2025, the SFG share price declined 6.3% (from RON 40.3 on December 31, 2024 to RON 37.75 on December 31, 2025), while the BET index gained 46% over the same period.

Sphera Franchise Group paid dividends last year in two installments, on June 6 and December 15, 2025, in a gross amount of RON 1.09/share and RON 1.04/share, respectively.

Note: When analyzing the Group’s performance, management focuses on financial results excluding the impact of IFRS 16. Accordingly, the basis for financial analysis is results excluding IFRS 16.

About Sphera Franchise Group S.A.

Sphera Franchise Group is the largest group in Romania’s food service industry, owning the companies that operate the KFC, Pizza Hut, and Taco Bell franchise brands in Romania, KFC in Chișinău, Republic of Moldova, and in certain areas of Italy, as well as the Cioccolatitaliani brand in Italy. Sphera Group has also acquired the franchise rights to open Hard Rock Cafe restaurants in Romania and the Republic of Moldova. The Group operates more than 175 restaurants across three markets and employs approximately 5,000 people. Sphera Franchise Group has been listed on the Bucharest Stock Exchange since 2017 under the symbol SFG, being the only company from the HoReCa sector included in the benchmark BET index, as well as in the MSCI Frontier Markets indices.