CPE Takes Majority of Burger King China in $350 Million Deal to Triple Stores
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The funds will support Burger King’s future expansion plans in China, including increasing store count from roughly 1,250 to more than 4,000 by 2035
Chinese private equity firm CPE plans to invest $350 million for an 83% stake in a joint venture that will control Burger King’s operations in China, marking a major strategic pivot by the fast-food brand to revive its performance in the competitive Chinese market.
Restaurant Brands International Inc. (RBI), the Canadian owner of Burger King, will retain a 17% stake in the newly formed venture, which has exclusive rights to the brand in China for 20 years. The transaction, which values the business at nearly $421 million, is expected to close in the first quarter of 2026.
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- CPE will invest $350 million for an 83% stake in a joint venture controlling Burger King China, valuing the business at $421 million; RBI retains 17%.
- Burger King aims to expand Chinese stores from 1,250 to over 4,000 by 2035, addressing past management issues and lagging performance compared to KFC, McDonald’s, and Tastien.
- The move mirrors other foreign chains’ partnerships with local firms amid rising competition and changing market conditions in China.
AI generated, for reference only
Who’s Who
- Burger King
- Burger King is making a "major strategic pivot" in China, forming a joint venture with Chinese private equity firm CPE, which will hold an 83% stake. This move aims to expand Burger King's presence from 1,250 to over 4,000 stores by 2035, and improve its marketing and operations. Burger King has struggled in China, trailing rivals like KFC and McDonald's in store count and revenue per store.
- Restaurant Brands International Inc. (RBI)
- Restaurant Brands International Inc. (RBI) is the Canadian owner of Burger King. They will retain a 17% stake in a new joint venture that will control Burger King's China operations for 20 years. This move aims to revive Burger King's performance in China, with plans to expand stores to over 4,000 by 2035. RBI recently took back full control of operations in February 2025 and reported positive sales growth.
- CPE
- CPE (中信产业基金) is a Chinese private equity firm managing over 150 billion yuan ($21 billion) in assets. It plans to invest $350 million for an 83% stake in a joint venture to operate Burger King in China, aiming to expand stores from 1,250 to over 4,000 by 2035. CPE has invested 10 billion yuan in consumer services, including Mixue Bingcheng and Pop Mart.
- Mixue Bingcheng
- Mixue Bingcheng is a tea and beverage chain, and it is part of the investment portfolio of Chinese private equity firm CPE. CPE is a homegrown asset manager that has invested approximately 10 billion yuan in the consumer services sector.
- Lao Pu Gold
- Lao Pu Gold is a jewelry brand. It is part of the investment portfolio of CPE, a Chinese private equity firm. CPE has invested approximately 10 billion yuan in the consumer services sector, which includes Lao Pu Gold, along with other brands like Mixue Bingcheng and Pop Mart.
- Pop Mart
- Pop Mart is a toymaker that is part of CPE's investment portfolio. CPE is a homegrown asset manager in China with over 150 billion yuan ($21 billion) in assets under management. CPE has invested approximately 10 billion yuan in the consumer services sector, which includes Pop Mart.
- KFC
- In China, KFC is a major fast-food rival to Burger King, operating over 12,000 stores. This vastly outpaces Burger King's presence of fewer than 1,500 stores. The article notes that Burger King has long trailed KFC, even as KFC, alongside McDonald's, partnered with local entities years ago when China's food retail was considered a premium asset class.
- McDonald's
- McDonald's is a rival fast-food brand in China, significantly outperforming Burger King with 7,000 stores compared to Burger King's fewer than 1,500. Like other global food giants, McDonald's teamed up with local partners in 2016 to navigate competition and consumer demand in the Chinese market.
- Starbucks
- Among global food giants, Starbucks has teamed up with local partners in China amid rising competition and softening consumer demand. Recently, Starbucks unveiled a $2.4 billion deal with Boyu Capital for a controlling stake in its China retail business, following a trend toward local ownership.
- Yum Brands
- Yum Brands is a global food giant that, like Starbucks and McDonald's, has teamed up with local partners in China. This strategy reflects a trend among foreign food chains to collaborate with local entities amid increasing competition from homegrown brands and softening consumer demand in the Chinese market. Yum Brands shifted to local ownership in China in 2017.
- Tastien
- Tastien is a domestic Chinese fast-food chain launched in 2012. It has rapidly expanded, surpassing Burger King in China with over 9,000 outlets. According to a private equity investor, Tastien, along with other local players, now dominates lower-tier cities in China, making the market challenging for foreign brands like Burger King.
- TFI Asia Holdings B.V.
- TFI Asia Holdings B.V. is a Turkish-based entity that previously led the franchisee venture for Burger King's operations in China. Under their management, Burger King's expansion efforts in China significantly slowed, falling short of their goal to open 1,000 new stores within three years from 2018. They struggled with mismanagement, including food safety and supply chain issues.
- Boyu Capital
- Boyu Capital is mentioned as having a recent $2.4 billion deal with Starbucks, gaining a controlling stake in the coffee giant's China retail business. This highlights a trend of foreign food chains partnering with local investors in China.
AI generated, for reference only
What Happened When
- 2005：
- Burger King entered China.
- 2012：
- Tastien, a domestic fast-food chain, was launched.
- 2016：
- McDonald's shifted toward local ownership in China.
- 2017：
- Yum Brands shifted toward local ownership in China.
- 2018：
- Burger King's previous franchisee set a goal to open 1,000 new stores within three years.
- Late 2023：
- Before this time, Burger King's China same-store sales had not posted positive growth.
- 2024：
- China was among Burger King’s top 10 global markets by store count, but only eighth in revenue.
- By the end of 2024：
- Burger King China store count had reached 1,474.
- February 2025：
- RBI took back full control of Burger King’s China operations.
- Second quarter of 2025：
- RBI invested $30 million in Burger King China and appointed new leadership.
- Third quarter of 2025：
- Burger King's China same-store sales posted their first positive growth since late 2023, climbing 10.5%.
- Early November 2025：
- Starbucks unveiled a $2.4 billion deal with Boyu Capital for its China retail business.
- November 10, 2025：
- CPE announced investment plans in Burger King China and new expansion targets.
AI generated, for reference only
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