Sphera Franchise Group (SFG) Q4 2025 earnings summary

Executive summary

• Preliminary consolidated sales for 2025 reached RON 1,570.9 million, up 1.5% year-over-year, reflecting modest growth amid fiscal pressures, inflation, and cautious consumer sentiment, with Q4 marking the strongest quarter and signaling stabilization.

• Normalized EBITDA declined 16.4% year-over-year to RON 147.8 million, with normalized net profit down 25.2% to RON 72.7 million, mainly due to cost inflation and higher payroll expenses.

• Net profit for 2025 was RON 61.9 million, a 36.3% decrease, driven by higher operating expenses and margin compression.

• Decisive operational streamlining and cost optimization measures were implemented, with visible positive effects in H2.

• Strategic diversification included the integration of Cioccolatitaliani and the announcement of Hard Rock Cafe franchise expansion.

Financial highlights

• Q4 2025 sales were RON 419.8 million, up 3.7% year-over-year, marking the highest quarterly growth in 2025.

• Q4 normalized EBITDA rose 7.9% year-over-year to RON 51.7 million, while normalized net profit increased 15.8% to RON 29.8 million.

• Restaurant and G&A expenses rose 5.1% to RON 1,425.3 million, outpacing revenue growth and compressing margins.

• Food and material costs increased 1.6% year-over-year to RON 491.2 million, stable as a percentage of sales.

• Dividend per share paid in 2025: RON 2.13.

Outlook and guidance

• 2026 is expected to be a year of consolidation, with gradual normalization in consumer spending and a focus on margin rebuilding.

• Management expects network optimization and cost control to improve profitability going forward.

• Around 20 new units are targeted for 2026, including KFC, Taco Bell, Cioccolatitaliani, and potentially the first Hard Rock Cafe.

• Cost pressures are expected to persist in Q1 2026, but supplier negotiations should yield some input cost relief.

• No material financial impact from Pizza Hut closures is expected in 2026, with anticipated performance improvements.