Equity Brief · Consumer Cyclical2026-09-21
SFG.RO·Consumer Cyclical

Sphera Franchise Group S.A.

I · AI Analysis

The brief

Sphera runs franchise restaurants under three major international fast-food brands—KFC, Pizza Hut, and Taco Bell—primarily in Romania, with additional locations in Moldova and Italy [Yahoo Finance]. The company also operates Cioccolatitaliani, an Italian brand offering gelato, chocolate products, gourmet coffee, and pastries [Yahoo Finance].

Sphera Franchise Group operates quick-service restaurants under the KFC, Pizza Hut, and Taco Bell brands across Romania, Moldova, and Italy, plus the Cioccolatitaliani gelato and café chain [Yahoo Finance]. The company reported declining sales in the second quarter of 2026, attributed to 'more cautious consumer spending behavior in Romania' [Economedia]. Recent changes include removal from the BET stock index, replaced by Electro-Alfa [Ziarul Financiar].

Moderate financial health with manageable debt but declining sales and compressed margins.

The brief AI analysisConfidence 6/10

Sentinellis health

Moderate concerns

6.4/10

7.5+ strong · 4.5–7.5 moderate · under 4.5 weak

Profitability

14% of score3.3/10
Net margin+3.6%· need ≥ 4.1%, the lower third of Restaurants in our libraryGross margin+30.9%

Returns on capital

14% of score10.0/10
ROIC+15.8%Return on equity+62.4%

Growth & momentum

19% of score5.0/10
Revenue growth-1.5%· need ≥ 4.8%, the lower third of Restaurants in our libraryOperating margin trend+1.7pp YoY

Balance sheet

29% of score4.2/10
Current ratio0.3x· need > 1.2xNet debt / EBITDA1.9xInterest coverage4.8x· need > 6.0xDebt / equity5.34· need < 1.5

Cash generation

14% of score10.0/10
Free cash flowRON 122.0MCash vs reported profitRON 198.9M vs RON 57.1M

Value creation

10% of score10.0/10
ROIC vs cost of capital+7.1pp

Sentinellis calculation from the published statements — not a score reported by any data source. Each category is scored on the checks that had data; missing inputs are excluded rather than counted as failures.

Market capitalisation

RON 1.2B

Revenue (TTM)

RON 1.6B

Explainers

How we read these numbers

Plain-English guides · no account needed

II · Recent news

What moved

6 stories · ranked by relevance

  • Company2026-08-31

    Earnings call transcript: Sphera Franchise Group posts H1 profit gains in tough Q2 2026 - Investing.com

    Investing.com

  • Company2026-08-31

    Romania's Sphera Franchise H1 normalised net profit drops - SeeNews

    SeeNews

  • Company2026-08-31

    Sphera Franchise Group, profitabilitate mai mică la S1 - Profit.ro

    profit.ro

  • Company2026-08-31

    Profitul Sphera Franchise Group, operatorul lanțurilor KFC, Pizza Hut și Taco Bell, a scăzut cu… - Economica.net

    economica.net

  • Company2026-08-31

    Sphera Franchise Group, care operează KFC, Pizza Hut şi Taco Bell, a avut vânzări de 754,5 mil. lei în p - Ziarul Financiar

    Ziarul Financiar

  • Company2026-08-31

    Sphera Franchise Group (KFC, Taco Bell): Vânzările în restaurante au scăzut în trimestrul 2 cu 1,6%/ "Comportament mai prudent al consumatorilor din România" - Economedia

    Economedia

Premium · Free with any account

Consumer spending weakness in Romania drove a 1.6% sales decline in the second quarter, indicating demand headwinds in the company's core market [Economedia].

1 of 4 risks in this report

Risks

4

Opportunities

4

Red flags

2

Leadership

4

9 more findings in the full report — free with any account.

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III · Related

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Produced 21 Sept 2026, 12:41 UTC

Figures come from company filings and market data. The Sentinellis health score and the wording attached to it are our interpretation of those figures, not numbers the company reported.

Not investment advice and not a recommendation to buy or sell. Sentinellis holds no positions in the companies it covers, takes no payment from issuers, and has no broker referral arrangements.

How every figure and score is calculated