Burger King China to Expand to 4,000 Stores Under $350M Joint Venture

RBI announced Monday a new joint venture that will grow its Burger King China business from 1,250 stores to more than 4,000 over the next decade.

The company is partnering with Chinese investment firm CPE, which is pouring $350 million into the deal. The transaction is scheduled to close in Q1 2026. Afterward, CPE will own 83 percent of Burger King China while RBI will hold 17 percent and a spot on the board of directors. Under the deal, a wholly owned affiliate of Burger King China will become the brand’s master franchisee, holding exclusive rights for 20 years to develop, operate, and sub-franchise Burger King restaurants across the country.

“China remains one of the most exciting long-term opportunities for Burger King globally. Our recent investments and this joint venture underscore our confidence in the Chinese market,” RBI CEO Josh Kobza said in a statement. “CPE is a well-capitalized, proven operator with exceptional leadership and extensive consumer and restaurant experience, making them an ideal partner to fuel the next chapter of Burger King China’s growth. Together, we can unlock the business’s full potential by combining our iconic brand and global scale with CPE’s local market and operational expertise.”

The agreement sets a new tone for Burger King China. In early 2024, RBI leadership publicized displeasure with how its previous Chinese partners were growing in the market. At the time, Kobza said, “There is some question on the outlook and kind of appetite and alignment for growth [in China].”

The two sides later entered a legal dispute after RBI sent termination notices. The company expected net restaurant growth in the mid-3 percent range for 2024, below its 5 percent target, and a big reason for that lower projection was “significant year-over-year deceleration” in China, according to CFO Sami Siddiqui.

Then, earlier this year, RBI revealed it took over 100 percent of the Burger King China segment for $158 million, with hopes of finding a more favorable partner.

Burger King China’s same-store sales rose 10.5 percent in Q3, including a quarter-over-quarter improvement in unit economics. RBI attributed the performance to a new chicken burger, a marketing campaign with TV show “Naruto,” and growth in delivery.

“I would say the thesis that we went into China with this year has played out even better than we expected,” Kobza said during RBI’s Q3 earnings call. “We made some changes to the teams, put in place some really talented and experienced local leaders, we improved some of the marketing, launched some new products, brought back some media focus and have really turned the corner in a meaningful way on the same-store sales.”

RBI is betting sales results will accelerate under CPE, which has about $22 billion in assets under management and completed more than 300 investments globally. The Burger King parent said the Chinese firm “brings deep local market insights, operational excellence, and significant capital to accelerate Burger King China’s growth.”

“Burger King is a world-renowned brand with enduring appeal among Chinese consumers,” Mark Mao, managing director of CPE, said in a statement. “Our investment reflects our confidence in Burger King’s long-term potential in China. Leveraging our commitment and deep understanding of the Chinese consumer, we aim to bring Burger King’s flame-grilled burgers to even more guests across the country.”

RBI has been active in China over the past few years. In 2024, it bought Popeyes China for $15 million and also partnered with Cartesian Capital Group to invest up to $50 million into Tim Hortons China.