Sphera Franchise Group, company which administrates KFC, Pizza Hut, Pizza Hut Delivery and Taco Bell franchises in Romania, posted consolidated sales of RON 350.1 million in the first six months of the year, up 21.6 percent from the pro forma results of the same period in 2017.
The company opened 26 new units from the beginning of 2017 and the greatest contribution to the performance were USFN Romania (KFC operator in Romania) with total sales increase of 19.8 percent, while ARS (Pizza Hut operator in Romania) reported sales up 9.1 percent.
”During this period we once again navigated new territories by opening the third Taco Bell restaurant in Bucharest and further expanding our network of restaurants both in Romania and Italy. Our solid performances not only reflected in the results but also attracted international recognition: we received the Franchise of the Year award, the highest distinction in YUM! Brands Inc. globally, ”said Mark Hilton , CEO, Sphera Franchise Group.
Sphera’s EBITDA (profit before interest, tax, depreciation and amortization) amounted to RON 32.3 million, representing a 15.9 percent decrease compared to last year. The main reasons for declining profitability were the significant acceleration of the opening pace of restaurants, including the two new business segments (KFC restaurants in Italy and Taco Bell in Romania), together with a general slowdown in retail market conditions in the second quarter of the year.
For the second half of the year, Sphera targets a 25 percent sales growth and estimates that it will exceed its 2018 unit expansion commitments.
”We had planned to open a total of 23 new units in Romania and Italy. However, our latest estimate indicates that we expect to open 26 new units with three KFC restaurants, plus Italy. Accelerating the chain of extension of the chain of restaurants is not just a reflection of the significant growth potential, but also of our commitment to excellence, ”added Hilton.