Burger King hands majority control of China business to CPE in $350 million deal

by SONG Jianan

Burger King will hand majority control of its China business to alternative asset manager CPE, which will invest US$350 million to form a new joint venture as the fast-food chain seeks to reignite growth in the world's second-largest consumer market.

The venture, to be known as Burger King China, will oversee the brand's next phase of expansion. Under the agreement, CPE will hold an 83% stake and Restaurant Brands International (RBI)—Burger King’s Toronto-based parent company—will retain 17%, according to a company statement. The transaction is expected to close in the first quarter of 2026, pending regulatory approval.

The US$350 million investment will fund restaurant expansion, marketing, menu development, and operational upgrades. The joint venture aims to increase Burger King's China footprint to more than 4,000 stores by 2035, nearly triple its current scale.

Under the agreement, Burger King China will also sign a 20-year master franchise deal, granting exclusive rights to develop the brand across the mainland.

"China remains one of the most exciting long-term opportunities for Burger King globally," said Joshua Kobza, CEO of RBI, "Our recent investments and this joint venture underscore our confidence in the Chinese market."

Burger King has struggled to keep pace with rivals in China's highly competitive quick-service restaurant market. As of the end of September, it operated 1,271 outlets, compared with KFC's more than 12,000 and McDonald's China's plan for 10,000 by 2028.

RBI, one of the world's largest fast-food groups, owns Tim Hortons, Burger King, Popeyes, and Firehouse Subs, operating more than 32,000 restaurants in over 120 countries with systemwide annual sales exceeding US$45 billion.

Founded in 2008, CPE manages over 100 billion yuan (about US$14 billion) in assets and focuses on consumer and service industries. Its portfolio includes Mixue Ice Cream &Tea, Aier EYE Hospital, Laopu Gold, and Pop Mart—some of China's most recognizable consumer brands.

The deal follows a similar move by Starbucks, which earlier this month announced a joint venture with Boyu Capital to operate its China retail business. Boyu will hold up to 60%, while Starbucks retains 40% and remains the brand and intellectual property owner.

While CPE's bigger stake in the venture gives the company greater flexibility, its success will depend on how effectively Burger King can adapt to local tastes and compete in China's crowded fast-food market.