While sales edged up, net profit shrank by over one third from the previous year and margins were affected along almost all operational lines.
At the level of the full year, sales across the Group increased 1.5%, reaching RON 1,570.9 million in 2025, with other restaurant income amounting to RON 6.1 million, compared to RON 2.3 million in 2024. Most of the revenues were generated in Romania – RON 1,346.2 million (85.7% of total sales; +1.0% YoY), followed by Italy – RON 196.4 million (12.5% of total sales; +2.4% YoY) and the Republic of Moldova – RON 28.3 million (1.8% of total sales; +19.7% YoY).
Restaurant expenses amounted to RON 1,425.3 million in 2025, increasing 5.1% YoY, outpacing sales growth and leading to a 3.2pp increase in the expense ratio, to 90.7% of sales. This evolution was mainly driven by inflationary pressures and normalized items, with all cost categories growing at a faster pace than revenues.
Food and material costs increased by 1.6% YoY to RON 491.2 million, remaining broadly stable as a % of sales, reflecting cost control efforts that partially mitigated raw material inflation.
Payroll and employee benefits increased 8.4% YoY to RON 373 million, mirroring labor market pressures particularly visible in H1 2025, with their weight in sales increasing by 1.5pp to 23.7% for the full year.
Operating profit at group level dropped by 35.5% to RON84.2 million and net profit shrank by 36.3% to RON61.9 million.
Normalized EBITDA decreased by 16.4% YoY to RON 147.8 million, driven by cost inflation, particularly in payroll, which weighed on restaurant-level profitability.
By brands, KFC remained the main engine of the group, with sales of above RON1.35 billion, slightly up from 2024, but the network’s operating profit was affected by rising costs.
While annual results point to clear profitability deterioration, the fourth quarter brought stabilization signs.
The management indicates cost pressures were largely concentrated in the first half of the ear, while the second half, particularly the fourth quarter, benefited from improved discipline in expense management and a gradual demand rebound. Nevertheless, the high level of fixed costs and consumption fragility remain risk factors for profitability evolution in the coming period.
(English version by Catalina Apostoiu)