Burger King to sell majority stake in China biz for US$350m

Burger King's parent companny Restaurant Brands International (RBI) has agreed to sell a majority stake in its Chinese operations to CPE Yuanfeng, a Chinese private equity firm, in a bid to accelerate the brand’s expansion across China.

CPE, an asset manager headquartered in Beijing with a proven track record in fostering capital-industry integration, has a strong focus on the consumer services sector. It has invested approximately RMB 10 billion in this space, with a portfolio boasting industry leaders such as Mixue Ice Cream & Tea, Aier Eye Hospital, Lao Pu Gold, and Pop Mart.

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As part of the transaction, a wholly owned affiliate of Burger King China will enter into a 20-year master franchise agreement, securing exclusive rights to develop the Burger King brand in the country. Upon completion, CPE will hold approximately 83% of the equity in Burger King China, while RBI retains a 17% stake.

To support Burger King China's growth, CPE is committing an initial investment of US$350 million. The capital will be allocated to restaurant network expansion, marketing campaigns, menu innovation and operational capability enhancement.

The joint goal is to grow Burger King's store count in China from the current 1,250 to over 4,000 by 2035, while achieving sustainable like-for-like sales growth.

Post-investment, CPE will provide comprehensive support to Burger King China, focusing on key operational areas: product upgrades, brand marketing enhancement, physical store network expansion, online channel restructuring, digital system development and financial optimisation.

The transaction is expected to be completed in the first quarter of 2026, with the exact timing subject to the progress of regulatory approval procedures, according to an official announcement by CPE.

Wei Mao, managing director of CPE, said: "Burger King is a world-renowned brand long favoured by Chinese consumers. This investment underscores our confidence in its long-term growth potential in China. Leveraging our local presence and deep understanding of domestic consumers, we are committed to bringing Burger King’s unique flame-grilled burgers to more people across the country."

Joshua Kobza, CEO of RBI, said: "China remains one of Burger King's most attractive long-term growth markets globally. Our recent investments and this new joint venture demonstrate our continued confidence in the Chinese market."

"CPE brings substantial capital, exceptional leadership, and profound expertise in the consumer and dining sectors, making them an ideal partner to lead Burger King China into its next chapter. By combining Burger King's brand power and global scale with CPE's local resources and operational excellence, we believe this collaboration will fully unlock the growth potential of the business in China," Kobza added.

MARKETING-INTERACTIVE has reached out to Burger King for more information.

Recently, the Chinese food and beverage (F&B) sector has seen another major player agree to sell a majority stake in its Chinese business to a domestic firm, with Starbucks striking a US$4 billion deal with Boyu Capital to sell a 60% stake in its China operations.

Combining Starbucks globally recognised brand and coffee expertise with Boyu's deep understanding of Chinese consumers. The partnership marks a significant milestone in Starbucks ongoing transformation and underscores its commitment to accelerating long-term growth in China, one of the company’s most important and fastest-growing markets globally.

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