Romanian company Sphera Franchise Group (SFG), which operates under franchise contracts about 140 KFC, Pizza Hut and Taco Bell restaurants in Romania and Italy, forecasts a RON 49 million (EUR 10 million) net profit in 2019 and wants to open 24 restaurants upon RON 100 million (EUR 20 million) investments.

SFG shares dropped last week by 10% as the company revised its 2018 results previously published, to reflect a RON 11.5 million (EUR 2.5 million) provision linked to a tax control. After the revision, the net profit decreased to RON 24.3 million (EUR 5.2 million).

SFG has budgeted for 2019 revenues of RON 993 million (EUR 209 million), up 29% over 2018, and expects the net profit to double to RON 49 million (EUR 10 million), according to the budget of revenues and expenses presented to shareholders.

"The development plan provides for the opening of 24 restaurants with an investment budget of about EUR 19.8 million. Expenditure on the refurbishment of existing restaurants is estimated at EUR 3.1 million," reads the document.

editor@romania-insider.com