Sphera Franchise Group Proposes Significant Dividend and Capital Reduction
Sphera Franchise Group (BVB: SFG), the prominent company behind the operations of popular fast-food chains including KFC, Pizza Hut, and Taco Bell in Romania, has announced a significant proposal for its shareholders. The company’s Board of Directors has scheduled a General Meeting of Shareholders for April 28, 2026, to discuss and vote on key financial decisions, including the distribution of a dividend and a substantial capital reduction.
The central item on the agenda is the approval of a gross dividend amounting to RON 1.06 (approximately EUR 0.21) per share. This proposed payout will be funded from the company’s undistributed net profit accumulated during the 2023-2024 fiscal period. The total sum earmarked for this dividend distribution is RON 41 million (around EUR 8 million).
Based on the current trading price of RON 37.55 per share (equivalent to EUR 7.36), the proposed gross dividend yield is projected to be 2.82%. This figure offers a tangible return for investors who hold Sphera Franchise Group shares.
Further details regarding the dividend distribution timeline have been outlined. The proposed record date for determining eligible shareholders is May 14, 2026, with the ex-dividend date set for May 13, 2026. Investors can anticipate the commencement of dividend payments from June 5, 2026, onwards. This structured approach ensures clarity and efficiency in the distribution process.
Beyond the dividend, shareholders will also be presented with a proposal to reduce the company’s share capital. This reduction is slated to be RON 9.6 million (approximately EUR 1.88 million) and will be achieved through the cancellation of 642,106 treasury shares. These shares were previously repurchased by Sphera Franchise Group under its ongoing share buyback programs. Such a move can often be indicative of a company’s confidence in its financial standing and its commitment to returning value to its shareholders.
This latest dividend proposal follows a period of significant returns for investors. In the preceding year, the group distributed over RON 80 million (approximately EUR 15.7 million) to its shareholders, demonstrating a consistent pattern of rewarding its investor base.
In addition to these shareholder-focused initiatives, Sphera Franchise Group is also seeking approval for a crucial operational financing measure. Management is requesting authorization for a credit facility of EUR 27 million (equivalent to RON 137.7 million) from Raiffeisen Bank. This facility is intended to provide robust financial backing for the company’s ongoing and future operational needs, ensuring the smooth running and expansion of its extensive restaurant network.
Financial Performance and Market Position
The company’s financial performance in the past year has shown resilience. Sphera’s restaurant sales experienced a notable increase of 1.5% in 2025, reaching a total of RON 1.57 billion (approximately EUR 308.0 million). This growth was primarily driven by the strong performance of the Romanian market, which contributed a substantial 86% of the group’s total revenue. This highlights the company’s deep entrenchment and success within its home market.
Despite the positive operational developments and dividend proposals, Sphera Franchise Group’s shares have experienced a decline in value over the past year. SFG shares have seen a loss of 11% over the last twelve months. The company currently holds a market value of RON 1.5 billion (around EUR 294.1 million). This market performance, while showing a recent dip, is set against a backdrop of significant operational activity and strategic financial planning. The upcoming shareholder meeting will be a key event for investors to gauge the company’s future direction and assess the impact of these proposed financial maneuvers.
