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SPHERA FRANCHISE GROUP - SFG

Update to the Restaurant Development Plan - KFC Romania

Release Date: 12/22/2020 6:11:24 PM

IRIS Code: 3F161

 

To:

BURSA DE VALORI BUCURESTI S.A.

AUTORITATEA DE SUPRAVEGHERE FINANCIARA

 

 

CURRENT REPORT 39/2020

According to Law no. 24/2017 regarding issuers of financial instruments and market operations, ASF Regulation no. 5/2018 regarding the issuers of financial instruments and market operations and/or Rulebook of the Bucharest Stock Exchange Market Operator.

Date of report

22.12.2020

Name of the Company

Sphera Franchise Group SA

Registered Office

Bucharest, Romania

Address

Calea Dorobantilor nr. 239, 2nd floor, Bucharest sector 1

Phone / Fax

+40 21 201 17 57 / +40 21 201 17 59

Email

investor.relations@spheragroup.com

Registration nr. with Trade Registry

J40/7126/2017  

Fiscal Code

RO 37586457

Subscribed and paid share capital

581,990,000 RON

Total number of shares

38,799,340          

Symbol

SFG

Market where securities are traded

Bucharest Stock Exchange, Main Segment, Premium Category

Important events to be reported: Update to the Restaurant Development Plan for KFC Romania

The management of Sphera Franchise Group SA (the “Group”) informs the investors about the successful closing of the negotiations regarding the resizing of the restaurant development plan, as a result of the health crisis, between  the franchisor, YUM! and US Food Network SA (“USFN”), the Group’s subsidiary that holds the franchise rights to operate KFC restaurants in Romania.

The original 2017-2022 restaurant rollout plan as agreed between YUM! and USFN considered opening in 2020 8 new KFC restaurants in Romania and 9 new restaurants in 2021.

During the negotiations, the parties have agreed that for the period 2020 - 2021, USFN will open 10 net new stores in Romania. Out of that amount, 4 net new stores were already inaugurated by the Group in 2020. Therefore, USFN has 6 more net new stores to open by the end of 2021.

During the negotiations, the Group also managed to obtain financial incentives that will help in the process of expansion the KFC network in Romania. Moreover, should the Group overpass the goal of opening 10 new locations by the end of 2021, it will benefit from further financial incentives from the franchisor. Due to the confidentiality of the agreement with YUM!, the Group cannot disclose the total value of the financial incentives renegotiated.

The target for 2022 for KFC Romania remains unchanged and includes opening of 9 new restaurants.

The management is currently in ongoing renegotiations regarding the restaurant development plan for American Restaurant System SA, the operator of Pizza Hut and Pizza Hut Delivery brands in Romania. As soon as the agreement is reached, the company will inform the market about the new targets through a separate current report.

CHIEF EXECUTIVE OFFICER                                                  

Calin Ionescu                                                              

 



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