Summary
Burger King plans to greatly increase the number of its restaurants in China through a new partnership with a local company. This effort involves a $350 million investment to expand from about 1,250 to over 4,000 locations by 2035. The Chinese partner, CPE, will hold a major stake in this venture, with Burger King's parent company keeping a smaller stake and a seat on the board.
Key Facts
- Burger King wants to expand its number of restaurants in China from about 1,250 to over 4,000 by 2035.
- A joint venture called Burger King China will receive $350 million from the private equity firm CPE.
- CPE will own about 83% of the joint venture, while Restaurant Brands International (RBI) will keep around 17% and have a board seat.
- Burger King sees China as a major growth opportunity, according to RBI's CEO.
- Burger King, a company founded in 1953, began operating in China in 2005.
- In China, Burger King faces strong competition from McDonald's and KFC, which have more than 6,800 and 12,600 locations respectively.
- The decision aligns with a trend of U.S. brands adjusting their presence in China, similar to Starbucks selling a majority stake in its China business.
