Global fast-food chain “Burger King” has sold 83% of its Chinese operations to a Chinese company. This marks another instance of foreign ownership being relinquished after Starbucks.
On November 10th, Burger King’s parent company, RBI (Restaurant Brands International), reached a strategic partnership with the Chinese private equity firm CPE Source Peak. The two parties are set to establish a joint venture named Burger King China. This news has been reported widely by several mainland media outlets and has become a hot topic.
According to the agreement, CPE Source Peak will inject an initial capital of $350 million into Burger King China to support its restaurant expansion, market marketing, menu innovation, and operational capabilities enhancement. Following the completion of the transaction, CPE Source Peak will hold approximately 83% of Burger King China’s shares, while RBI will retain around 17% of the shares.
The agreement grants CPE Source Peak exclusive rights to develop the Burger King brand in China. As revealed by Pengpai News on November 10th, Burger King China plans to conduct a comprehensive assessment of its restaurant layout and close underperforming locations. This adjustment is expected to result in a decrease in the total number of Burger King China outlets in 2025. To offset some of the impact, Burger King China plans to simultaneously open 40 to 60 new restaurants. 2025 marks the 20th anniversary of Burger King’s entry into the Chinese market.
It is reported that the transaction is expected to be completed in the first quarter of 2026, with the specific timing dependent on regulatory approval processes. Prior to this transaction, Restaurant Brands International (RBI) held almost 100% of Burger King China’s shares.
Regarding this transaction, Ling Yan Consultancy’s Chief Analyst Lin Yue analyzed to Southern Metropolis Daily, saying that Burger King’s approach shares similarities with Starbucks in leveraging local resources to address the brand’s challenges in the Chinese market. Local Chinese restaurant brands can introduce new products at a faster pace, offering better value, which poses challenges for international brands. The entry of private equity firms can assist brands in rapid localization and quick response to market changes.
On November 4th, Starbucks Coffee Company announced a strategic partnership with the Chinese alternative asset management firm Boyu Investment. According to the agreement, Boyu will hold up to 60% of the joint venture, with Starbucks retaining a 40% stake and continuing as the owner and licensor of the Starbucks brand and intellectual property to the newly established joint venture.
In recent years, many foreign consumer brands have sold stakes in their Chinese operations. In August 2017, McDonald’s China completed its equity restructuring, with CITIC Capital Holdings being the controlling shareholder of McDonald’s China. Before Yum China spun off and listed independently in 2016, it attracted investment from Spring Capital and Ant Financial. Yum China exclusively operates and licenses three brands – KFC, Pizza Hut, and Taco Bell – in the Chinese market, owns the Little Sheep and Huang Ji Huang chain restaurant brands, and collaborates with Lavazza to explore and develop Lavazza coffee shops in China.
Burger King opened its first restaurant in China in 2005. By 2019, Burger King China had over 1300 outlets. However, since 2021, its expansion has notably slowed down. By the end of 2024, Burger King China had a net decrease of 113 stores to 1474, and according to the latest data in November of this year, its store count further reduced to 1250, marking a net decrease of 224 stores.
Many are skeptical about CPE Source Peak holding Burger King. Netizen “Floating Wind Forgets S” commented, “Burger King’s positioning is on the high end, and it may be difficult to integrate after the acquisition. Similar to Lenovo’s integration of IBM which took many years, brand conflicts may hinder efficiency.”
CPE Source Peak, formerly Beijing Source Peak Asset Management Co., Ltd., is a Chinese asset management institution and private equity firm established on January 12, 2023. It focuses on investments in the fields of technology and industry, consumer health, infrastructure, and more.