Burger King partners with CPE in US$350M joint venture to expand China presence

CHINA – Restaurant Brands International (RBI), the parent company of Burger King, has established a joint venture with Chinese private equity firm CPE to accelerate the brand’s growth in China.

Under the agreement, CPE will acquire an 83% stake in Burger King China, with RBI retaining 17% ownership and a board seat, ensuring ongoing strategic involvement.

CPE is injecting US$350 million in capital to support the opening of new restaurants, boost marketing efforts, innovate the menu, and enhance operations nationwide.

This capital infusion underpins an ambitious plan to expand Burger King’s outlet count from approximately 1,250 restaurants in late 2025 to over 4,000 by 2035, aiming to effectively double the estate within the next five years.

Mark Mao, Managing Director of CPE, highlighted Burger King’s strong appeal among Chinese consumers and expressed confidence in driving further expansion leveraging deep local market knowledge.

Additionally, a wholly owned Burger King China affiliate will sign a 20-year master development agreement, granting exclusive rights to develop the brand across China.

RBI CEO Joshua Kobza emphasized that the joint venture aligns with RBI’s strategy to transition to a simpler, highly franchised business model while unlocking Burger King’s full potential in China’s fast-growing market.

He acknowledged CPE’s exemplary leadership and market experience as vital to this growth phase.

Pending regulatory approvals, the deal is expected to close in early 2026. Following completion, RBI will begin recognizing royalties from the operation in its international segment, gradually increasing to the full historical royalty rate.

This joint venture marks a significant milestone in Burger King’s renewed efforts to strengthen its footprint and improve competitiveness amid evolving market dynamics in China’s quick-service restaurant industry.

In addition to its significant investment in Burger King China, Chinese private equity firm CPE has a strong track record of strategic investments in China’s quick-service restaurant (QSR) sector and consumer brands.

CPE manages more than 100 funds with assets exceeding US$25 billion, investing heavily in scaling well-known consumer services companies across the country.

Among its portfolio are notable fast-growing food and beverage brands such as Mixue Group, a leading ice cream and bubble tea chain, and Laopu Gold, a brand well known for its premium jewelry but expanding consumer services.

CPE has also backed Pop Mart International Group, a leading designer toy company, highlighting its diversified investment approach in consumer lifestyle sectors.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.