Good afternoon. We will begin the call shortly. We are still waiting for some participants to connect. Thank you. Good afternoon, and welcome to Sphera Franchise Group results call for the first quarter of 2026. My name is Zuzanna Kurek, and I'm Investor Relations Officer at Sphera Franchise Group, and I will moderate today's call. Today morning, we have published our Q1 2026 results, which you can find on our website in the investor relations section, as well as on the BVB's website, Sphera Franchise Group investor profile. Before we begin, I would like to mention that this call is being recorded and that the recording of the call will be uploaded on our website by Monday the latest. As stated in the call invite, by joining this video conference, you automatically and implicitly consent to being recorded. If you do not consent to being recorded, please leave the call. In terms of organizational aspects, we will follow our standard call setup, which means the management will deliver a presentation outlining the Q1 2026 results, and later we will have a Q&A session. Please note that all the participants are on mute. If you would like to ask a question, please type it in the chat box. Feel free to do so during the call and we will answer all the questions in chronological order as soon as the presentation of the management is over. As always, I would like to mention that we might be making forward-looking statements today during this call regarding the future performance of Sphera Franchise Group and that actual results may differ materially. We encourage you to review the disclaimer that we have included in the presentation, which is available on our website as well as what you can see right now on the screen. This disclaimer applies equally to all statements made in today's call. We can kick off the call. I would like to introduce the management team that is here with me today and will present our financial results. I am joined today by Călin Ionescu, Chief Executive Officer, Valentin Budeș, Chief Financial Officer, Monica Eftime, Chief Marketing Officer, Marian Gogu, General Manager of KFC Romania, and Costică Mișacă, General Manager of Pizza Hut and Taco Bell Romania. I will pass now the floor to our CEO, Mr. Călin Ionescu, who will share with you some insights about our performance in the first 3 months of 2026. Călin, please. Thank you. Good afternoon. Thank you for joining us today to discuss Sphera Franchise Group results for the first quarter of 2026. I like to begin by framing the context in which we operate during the three months of the year. Q1 was not an easy quarter for the food service industry, nor for consumer spending in general. We continue to see a tense economic environment with still elevated inflation, cautious consumer behavior, and sustained pressure on operating costs. Today's consumer is more selective with spending than 2 or 3 years ago. In Romania, the impact of the fiscal measures introduced in the second half of 2025 continues to be felt at the start of this year. At the same time, volatility in international markets, geopolitical tensions, and fluctuation in energy prices continue to affect supply chains, logistic costs, and the exchange rates. All these factors put pressure on both consumers and companies. In such a context, the most important thing for a company like Sphera is adaptability. Our multi-brand, multi-geographic model is increasingly demonstrating its structural advantage in these conditions. In Q1, we saw a meaningful recovery in Romania, especially in KFC, which remains the group most important operational platform. At the same time, Taco Bell continues its upward trend. It is gaining relevance in a consumer segment where frequency and loyalty are built differently compared to traditional QSR brands. This is important not only for a short-term perspective, but also for how we look at the group's development over the coming years. This momentum translated in the top line growth in the first quarter. Sphera generated consolidated sales of around RON 378 million in Q1 2026, up 4.2% compared with the same period last year. Beyond the recovery of the core business, this performance also reflects the contribution of the restaurant opened in 2025 and the resilience of demand across our portfolio and markets. From a profitability standpoint, we delivered a EBITDA of RON 24 million, broadly in line with the prior year period. The modest fluctuation is attributable to external industry factors with underlying business performance remaining resilient. In this environment, our focus has been not only on expansion, but also on the quality of the network and the efficiency of invested capital. The decision regarding the optimization of the Pizza Hut network comes precisely from this perspective, prioritizing return on capital over unit count and ensuring every location in our network meets our standard for performance and strategic fit. In parallel, we continue to build Sphera as a more delivery-spiked multi-brand platform aligned with new consumption trends. Following the development of Taco Bell and its first international expansion in the Republic of Moldova, the opening of a new Cioccolatitaliani unit and the addition of Hard Rock Cafe to our portfolio, we have recently welcomed the wagamama brand, one of the most recognized pan-Asian restaurant concept globally, with strong differentiation and uptaped potential in the Romanian market. The food service industry is entering a stage where simple expansion is no longer a competitive advantage. What will matter more is the ability to operate efficiently, to have relevant brands, and to respond quickly to shifts in consumer behavior. This is exactly the type of organization we are building at Sphera Franchise Group. The results from the first quarter show that we can continue to grow, even in a challenging environment, where preserving financial flexibility and the capacity to invest in the group's long-term development. Thank you for your trust and support. I will now invite Valentin Budeș, CFO of Sphera Franchise Group, to walk you through the detailed financial results and the outlook for the rest of the year. Vali? Thank you, Călin. Good afternoon, everyone, thank you for joining us today. I will now walk you through the main financial and operational developments for the Q1 of 2026, which was a quarter in which sales growth came in still a volatile consumer environment with persistent pressures on all operating costs. At the same time, the results reflected the accelerated investment made in the network expansions over the past 12 months and the early-stage development for newly open restaurants. I believe it is important to mention that the first quarter is traditionally the softest of the year for the food services industry, both in terms of traffic and profitability as well. In this context, we consider that the Sphera Franchise Group current performance provides a very healthy foundation for the rest of the remaining quarters of 2026. The highlight of Q1. We begin with the main ones for the quarter. At the consolidated level, the group generated sales of almost RON 378 million, which are up 4.2% compared with the same period of last year. Romania remained the main contributor with over RON 326 million and a growth of nearly 5%. These figures are confirming the return of a stronger dynamic in the KFC segment, for Romania. Italy continued to deliver stable performance with sales of RON 45.6 million and a 2% increase. While Moldova was influenced by the reallocation of one of our restaurants, i.e., KFC Chisinau, Moldova, and recorded overall sales of RON 6.2 million. By brand, KFC remained by far the main contributor of our group performance, with sales of RON 324.3 million and a growth of 4.2% versus the same period of last year. Taco Bell continued to be our fastest growing brand in the portfolio, with revenue up 12.2% to RON 27.1 million, all of them supported by the accelerated network expansions and a very strong traction among the younger consumers. Sorry. Pizza Hut generated revenue of RON 26.3 million in the context of ongoing operational optimization measures, while Cioccolati contributed with RON 0.3 million, as the company continues to build brand maturity. Now, the key indicators. This slide shows more clearly the difference between sales dynamics and the profitability evolution during the first quarter. We have the total expenses increased by approximately 5%, slightly above the sales growth rate, mainly due to the inflationary pressures and directly linked with the network development. In Q1, we managed to secure a normalized EBITDA of RON 24.1 million. It is important to note that Q1, we continue to absorb the impact of the accelerated expansions coming from the last 12 months. Recently opened locations were still in process of scaling operations, resulting in temporary, slightly margin dilution. On the other hand, we are already seeing their contribution to sales growth and the strengthening of our position in the market, where they were opened. Now, key financials for Q1. We can see the quarter main financials lines in details. We have sales increased by 4.2%, as mentioned, reaching RON 378 million, while restaurant cost increased by 5.2%. The evolution was influenced by the elevated operating cost and the fast-paced growth of the restaurant footprint. Payroll and employee benefits, which jumped 4.6% to RON 97 million, reflecting industry-wide wage adjustment and higher number of employees, mainly driven by the new stores opening mentioned. In Q1, Sphera intensify marketing campaigns and brand-building initiatives across all the brands in our portfolio, particularly to drive customer traffic and support the newly open restaurants. As a result, investment in advertising increased by 27.6% year-over-year, reaching the amount of RON 20.6 million. Excluding costs associated with the Pizza Hut network optimization process, we have a normalized EBITDA of RON 24.1 million in Q1, which, as Călin mentioned, broadly in line with the prior year similar period. Now, restaurant footprint. In the first quarter, we opened four new restaurants, three KFC units in Romania, Italy, and Moldova, and one Cioccolatitaliani unit in Italy. At the end of March, we were operating 182 restaurants at the group level. In Q2, we continue as well the expansion by bringing Taco Bell for the first time to Republic of Moldova. Our strategy remain balanced. We continue to invest in markets and concepts where we see strong growth potential, but always in a disciplined manner from a capital and long-term profitability perspective. Some words about Pizza Hut optimization. The slide refers to one of the most important operational decision made during this quarter. In February, we announced the continuation of the streamlining of Pizza Hut network in Romania, and the strong decision of closing several restaurants, mainly due to the continued operational underperformance, which was impacting negatively our brand EBITDA. We believe that in a more volatile economic environment with more cautious customer behavior, operational discipline, and capital efficiency, it's more and more essential. Our objective is to improve the brand's long-term profitability profile and recalibrate the network in such a way to reach efficiency. Brand portfolio expansion. In parallel with optimizing the mature networks, we continue to invest in developing our multi-brand platform. The announcements regarding the addition of wagamama to our portfolio marks our entry into a new segment, fast casual Pan-Asian dining, where we see strong, attractive long-term development opportunities. For us, the diversification means not only expanding the portfolio, but also building this platform that Călin mentioned, which is balanced and relevant, and offer possibilities for new consumption trends. Waga launched in London in 1992. It's an international restaurant brand. It's known for its Asian-inspired concepts, efficient operational model, and contemporary location design. The brand is built around the famous Kaizen philosophy, focused on continuous improvement and constant adaptation to the customer behavior and needs. Now, we have prepared a slide for the budget of this year. It was published and reflects a balanced approach between growth and financial discipline. We estimate the sales for this year overall to reach RON 1.7 billion, which is up 7.6% versus 2025. This level will be supported by both comparable restaurant performance and by the contribution of the new units as well. At the same time, we estimate EBITDA of approximately RON 160 million for this year, while we'll continue to invest aggressively in network development. We are planning for this year a record CapEx of around RON 130 million, related to the opening of 21 new restaurants that we schedule to open in 2026. I believe the key message here is that although the economic environment remains clearly volatile, we continue to see strong development opportunities for us, and we will remain focused on profitable growth and disciplined capital allocation. Thank you. We will now move to the brand performance, and we will begin with KFC. Thank you, Zuzanna. Good afternoon. Thank you for being here today. I will share with you the progress we've made from a sales perspective for the KFC brands across the three markets Sphera operates in, Romania, Italy, and Republic of Moldova. I will begin with KFC Romania. In reviewing our performance, I'm pleased to highlight that KFC Romania continued its positive trajectory in Q1 2026, with same-store sales increasing by 3% year-on-year marking a further acceleration compared to the positive trends recorded in Q4 2025, and fully reversing the negative evolution seen throughout most of last year. This performance was supported by improved consumer appetite in the domestic market and the contribution of restaurants opened during 2025. On an all stores basis, US Food Romania grew by 5% year-on-year in Q1 2026, reflecting both the positive same store evolution and the impact of network expansion. The positive start to the year confirms the resilience of KFC Romania and suggests that demand continues to gradually stabilize following a softer 2025. Turning to Italy. KFC Italy returned to slight growth on the all stores basis in Q1 2026, with sales increasing by 1.4% year-on-year, while same store sales declined by 5.4% year-on-year. Although the Italian business remains strategically important for the group, the market continued to face a more competitive environment and softer consumer demand compared to Romania. Moving on to Moldova. KFC Moldova recorded a weaker quarter in Q1 2026, with same stores declined by 9.8% year-on-year, and all store sales decreasing by 8% year-over-year. The evolution was primarily impacted by the mandatory relocation of the KFC Chișinău, Moldova restaurant in March 2026, which temporarily affected the brand's performance within the market. Despite the softer quarterly performance, the group continues to see long-term potential in Moldova, where the KFC brand maintains strong awareness and favorable market positioning. The temporary impact from the relocation process is expected to normalize once the restaurant resumes full operations in the new location. I will conclude here. Thank you. Thank you. Good afternoon. I'm pleased to have the opportunity to walk you through the latest sales performance of Pizza Hut and Taco Bell in Romania, and I will begin with Pizza Hut, who remain under pressure in Q1 2026, with sales declining by 3.2% year-on-year on both the same store and all store basis. This performance reflects ongoing challenges in driving traffic and maintaining momentum, particularly given the brand's higher exposure to the delivery channel and the continued competitiveness of the QSR market. We remain focused on driving operational efficiency and advancing the network optimization program for Pizza Hut, as outlined earlier by Valentin, and to restore the business's long-term profitability. As part of these measures, we are still in the process of closing the underperforming units, with initial impacts expected already within this year. At this stage, 5 of the 7 units planned for closure have already been closed. Moving on to Taco Bell. Taco Bell continued to be the standout expansion-driven growth driver within Sphera's portfolio in Q1 2026. All store sales increased by 12.2% year-on-year, fueled by the impact of 2025 store openings and growing brand relevance among younger consumers in Romania. At the same time, Taco Bell recorded a slightly same store sales decline of 2.4% year-on-year in Q1 2026 compared to the exceptionally strong same store growth recorded throughout 2025. Nonetheless, the brand remains the group's fastest growing concept, and its performance continues to confirm strong consumer appetite and significant scalability potential within the Romanian market. That's it all from my side. Thank you. Hello. Good afternoon from me as well. Now moving on from brand performance to marketing initiatives. As Valentin already highlighted, the first quarter is typically softer for the QSR industry. With this in mind, our primary focus was on developing and refining value-driven campaigns and platforms, aiming to identify the optimal mix for each brand to stimulate transaction and sustain a positive sales trajectory. Consumer behavior remained cautious, shaped by the complex economic and political environment currently facing Romania, which continues to influence purchasing decisions and reinforce the prudent approach to spending. I will outline a selection of key product innovation and campaigns we introduced in the first quarter of 2026, I will start with KFC. Four campaigns stood out at the beginning of the year with a focus on value and innovation. Top Menu, the first major 360 communication campaign, introduced a new value platform for a complete KFC meal featuring the brand's most popular products, chicken and burgers, along with fries and a drink at an attractive price point. Its objective was to drive sales and transactions by increasing frequency among existing customers, while also attracting light users through a strong price appeal. "Crispy Naan" was the first innovation-led campaign of the year, acting as a secondary layer within the communication strategy. Delivered through a 360 approach, it focused on introducing a new format, naan, featuring two recipes inspired by Indian cuisine. The campaign aimed at boosting sales and transactions by increasing frequency among heavy KFC users seeking novelty, while also attracting new and light users interested in experimenting with new tastes and formats. We also refreshed the iconic Tuesday Bucket campaign, evolving both its product proposition and creative approach. The activation was expanding into a four plus one day app mechanic while keeping the core activation available in store on Tuesdays, turning it into a disruptive 360 value campaign focused on driving transactions. The novelty came from an upgraded offer, the classic 20 Hot Wings Bucket, now paired with a mini fries bucket at a highly attractive price point. Snack Box was our second flagship 360 campaign of the quarter. This initiative centered on the Snack Box, an established everyday value offering, enhanced by a promotional price and a layer of innovation. This included the introduction of a mini wrap and the addition of the popular Booster Burger to the bundle. The campaign aimed at increasing visit frequency among existing consumers, with a particular focus on middle and low-income consumers. All four campaigns achieved positive same-store sales growth, contributing to a strong start to the year from a sales perspective. In terms of the KFC app, we continue to position the app as the key deals platform supported by both in-app and in-store communication. The main objectives were to drive transactions and sale within this channel by increasing downloads and expanding the user base. Now moving on to Pizza Hut. At Pizza Hut, we had a very busy start to the year, marked by a strong emphasis on value and innovation as key sales drivers. This approach translated into a dynamic and interactive marketing calendar. Pizza Bar was the first main campaign of the year, where we extended the promotion hours from noon to 9:00 P.M. to cover not only the lunch but also weekday dinner while keeping the deal mechanics unchanged, all-you-can-eat pizza slices across six available recipes. The campaign was rolled out nationally across billboards, subway, radio, and digital platforms with the primary objective of driving sales. Cheesy Twist was the secondary campaign focused on product innovation as a central communication pillar, while also serving as a ticket protector across channels. This was achieved through the launch of a new special crust, amplified by a national rollout across digital and in-store touchpoints. Valentine's Pink Pizza is another initiative of the quarter. Over a three-week period around Valentine's Day and Dragobete, we launched a limited edition pizza featuring a pink stuffed crust in a heart shape. The initiative helped us stay culturally relevant during a growing seasonal moment in Romania, with strong appeal among younger audiences. XXL and XXXL meal boxes were a secondary campaign, which focused on protecting the average ticket by promoting generous, value-driven group offers across online media. Available exclusively on our website and mobile app, those bundles were designed to appeal to consumers looking for convenient and affordable options for both small and large groups. Now moving on to Taco Bell. For Taco Bell, we rolled out four campaigns designed to broaden consumer choice and drive sales at the beginning of the year. Easy Cheesy, we introduced the product at RON 12.9 as a highly accessible entry product with the objective of driving traffic and trial among new and occasional consumers. The initiative was supported through an integrated channel mix. Restaurants, outdoor, digital, social, CRM, and delivery, enhanced through play masks to deepen digital engagement. Nacho Cheese Drip Burrito was a premium of food innovation product centered on indulgence, and craving, and the Bold Cheese experience. The product was designed to attract core fans, heavy users, and consumers seeking exciting and differentiated food experiences supported across restaurant, outdoor, digital, social media, and delivery channels. Mass Menu of full menu priced at RON 20.5 was designed to deliver strong value and increase frequency, particularly in smaller cities. The offer aimed to attract price-sensitive consumers while reinforcing Taco Bell's accessibility. The first campaign is the Valentine's Day and Dragobete activation. We deploy a one plus one chalupa offer built around sharing occasions and culturally relevant to local moments. The strategy focused on increasing traffic and accelerating orders across restaurants, click and collect, and digital channels. Now moving on to the delivery performance. In Q1 of 2026, delivery continued to represent an important component of our commercial mix, in line with the broader long-term trends towards convenience-driven consumption. The share of delivery sales increased by 1 percentage point compared to Q4 2025, reaching 20% of total group sales, consistent with the typical seasonality pattern visible during the winter period and the beginning of the year. In absolute terms, delivery sales grew by 2.6% year-on-year in Q1, reaching RON 75.4 million, confirming that delivery remains a resilient and structurally important channel across the group's portfolio. Thank you. That was all for me. Thank you. Thank you, Monica. This concludes the presentation of our results for the first quarter of 2026. Before we begin the Q&A, we would like to give you 1-2 minutes so you can type your questions in the chat box. As a reminder, we will only be taking the typed questions. There is no option to ask the questions live. Please use the next 1-2 minutes to write them. Thank you. Thank you for the questions. We will now begin the Q&A session. While we answer the questions, please keep them coming if there are other topics you'd like us to address. The first question is, "Food and material costs slightly improved as a share of sales in Q1 despite the inflationary environment. Is this improvement sustainable for the rest of the year, and how much room is left for procurement efficiencies? Indeed, in Q1, the better cost ratio was basically the effect of a combination of multiple initiatives, mainly the procurement discipline that we were mentioning also in the previous call. We took advantage of a favorable product mix and all the operational optimization projects that we are running internally paid off. However, regarding the continuation of this, as you all know, the inflationary environment is very volatile in Romania. We will continue to try to maximize as much as possible throughout different initiatives, including renegotiation and the way in which we structure the products and the offers. All in all, I may say that we will stick with the overall budgeted figures for 2026. It will be most probably a normalization throughout the quarters in such a way that we'll end up with the budgeted overall cost of goods sold. Thank you. The next question, advertising expenses increased materially in Q1 as the group supported traffic generation and new restaurants. Should we treat Q1 advertising as a front-loaded investment, or is this a new run -rate for 2026? Yes, we should treat it as a one-off investment. By the end of the year, as every year, advertising is going to be 5% of sales. Thank you. The next question. G&A expenses declined 10% year-over-year in Q1 and improved to 3.8% of sales. The 2026 budget implies G&A expenses increasing by 8.4% for the full year and remaining broadly stable as a percentage of sales. Should we treat the Q1 improvement as a sustainable efficiency gain, or were there timing effects that should reverse in the following quarters? Related to this, the Q1, it's a technicality and accounting effect of the reversal of the performance provisions for 2025. This will be reinvested in people throughout the remaining part of the year. All in all, the effect will be normalizing the remaining three quarters. If we are looking at the G&A as a consolidated figure for the full year, again, we are still referring to the value, including the budget of 2026. After Q1, is management still comfortable with the 2026 budget for sales, normalized EBITDA, and normalized profit, or are there any areas where the risk has shifted compared with the assumptions presented to shareholders? I will start answering this question. Obviously, we are very early into the year. It's just after Q1, and we have visibility of 1.5 months from the second quarter. The context is definitely volatile and there are a lot of uncertainties. In this moment, we strongly believe that we'll be able to navigate through this context, and we remain committed to the values that we have communicated and approved in the shareholder meeting for 2026. Thank you. We go to the next question. It's a longer one. Can you please explain the rationale for having a broad portfolio of new brands, Hard Rock, wagamama, Cioccolatitaliani, but in a very small number of units? Is this a margin-accretive exercise or rather margin dilutive? I would guess that scale of each brand is important for their respective profitability. Are there any operating synergies or cost synergies, purchasing synergies? Do you expect each of these brands standalone to be profitable? Yeah. I think the answer is at least as long as the question, because there are multiple arguments here. First of all, I will start by mentioning the philosophy behind this strategic decisions of enhancing our portfolio. We see the capability of our group to become a strong platform where every single type of business can be just added in and served immediately in an efficient manner. Obviously the scale is very important for the overall magnitude, but the scale can be the combination of multiple type of businesses, as well, as far as they are not complicating operationally the infrastructure and the mechanism behind. Cioccolatitaliani, just remember that we have a development intention plan of 20 restaurants, not quite small. 20, it's a reasonable footprint. Indeed, Hard Rock, it's much less number, five restaurants, but with a different magnitude per restaurant. Again, I think it can contribute very well to the overall performance of top line. Also Wagamama, for which we didn't decide yet to the magnitude, but it's a business that we believe that can be very easily scale, but we'll see throughout the project of opening the first ones. All in all, going now to the point of creativity to our performance, trying to give some more color here, all of them are meant to be accretive to the overall performance of our group in both EBITDA and profitability. Nothing that we'll do will not have a profitability philosophy behind it. I would like to add something at this question, this answer. Both Hard Rock and waga, there are casual dining restaurants that we believe that can add a lot of sales and a lot of profitability in the future because per unit, usually they have higher sales and higher profitability. The scalability if on Hard Rock, it's limited for a few cities, but in wagamama, we have a lot of room to open restaurants. Choco, let's consider Choco have, even that we signed for 20 on the beginning, have a potential of many other units in each mall in Romania, which is mean our diversification of portfolio with the base of the future for the next few years. Thank you, Călin. We have the last question. Before I read it, just a gentle reminder, if you have any other questions for us, please type them now. Otherwise, we'll be concluding this call. The question is, can you comment on traffic versus ticket evolution for Q1 2026? All in all, you saw the performance on the top line. From a transactions point of view, obviously it was a big pressure across the brands, but we have managed to offset this by better average ticket. Here we saw good compensation coming from this aspect that led us by ending up the figures for Q1 on a positive area for both same store and total store. Thank you. I see we have answered all of your questions. Thank you all for joining us today. The next call we're going to host after we publish the results for the first half of 2026, that will be on 31st of August 2026. Until then, we wish you a great day ahead and we look forward to reconnecting in August. Thank you.