People walk past a Burger King restaurant with Chinese national flags displayed on a street during the National Day Golden Week holiday on October 5, 2024, in Chongqing, China.
Cheng Xin | Getty Images
International restaurant brands announced Monday that it will form a joint venture with CPE, a Chinese alternative asset manager, to manage Burger King restaurants in China.
Earlier this year, a subsidiary of Restaurant Brands acquired its stakes from its previous Burger King China partners, Turkish operator TFI and U.S. private equity firm Cartesian Capital, for about $158 million in cash. The company then announced that it was considering finding a local operator as a partner.
Under the terms of the agreement, CPE will own approximately 83% of Burger King China. Restaurant Brands will have a minority stake of approximately 17%, as well as a seat on the board of directors.
Once the transaction closes, CPE plans to invest $350 million in the joint venture. This investment will be focused on a number of areas, from marketing to menu innovation to restaurant expansion. Over the next decade, the joint venture aims to more than double the burger chain’s market presence, from about 1,250 locations today to more than 4,000 by 2035.
“CPE is a well-capitalized and proven operator with exceptional leadership and extensive consumer and restaurant experience, making it an ideal partner to fuel the next chapter of Burger King China’s growth,” Josh Kobza, CEO of Restaurant Brands, said in a statement.
The deal is expected to close in the first quarter of 2026, subject to regulatory approval.
For decades, China’s massive population and rapid economic growth have made it an attractive market for U.S. companies, including restaurant chains. But in recent years, the economic downturn has caused some companies to rethink their strategies. A week ago, Starbucks announced plans to establish its own joint venture for its China operations with Boyu Capital, a local alternative asset management company.