Burger King Bets Big on China with a New Local Boss

CNBC, Bloomberg, and Reuters contributed to this report.

Restaurant Brands International (the parent of Burger King and Tim Hortons) is handing the keys to its China business to a powerful local partner — and mapping out a massive expansion to go with it.

The deal in a bite

• RBI is creating a joint venture with CPE, a China-based alternative asset manager, to run Burger King China.
• CPE will own about 83% of the venture; RBI keeps roughly 17% and a board seat.
• CPE plans to inject $350 million at closing to fuel marketing, menu innovation, digital, and new restaurants.
• The JV’s target: grow from ~1,250 restaurants today to 4,000+ by 2035 — more than doubling the footprint (some estimates frame it as closer to tripling).
• Closing is expected in Q1 2026, pending regulatory approvals.
• Once the deal closes, RBI will collect royalties on China sales through its international segment.

Earlier this year, RBI simplified the ownership structure by buying out its prior China partners — Turkey’s TFI and US-based Cartesian Capital — for about $158 million in cash. At the time, RBI said it would find a local operator to push growth. Now it’s done exactly that, with a partner that brings deep capital, operating muscle, and on-the-ground relationships.

China remains one of the world’s most important consumer markets, but it’s also tough terrain: growth has cooled, competition is fierce, and value wars are constant. To win, global brands increasingly need local speed and savvy — not just global playbooks. Handing control to CPE signals RBI wants faster site development, sharper local marketing, and more China-specific menus to match regional tastes.

RBI’s CEO Josh Kobza called CPE “well-capitalized” with “exceptional leadership,” framing the tie-up as the next chapter for Burger King in China. The aim is a business that’s leaner, more franchised, and set up to scale — a strategy RBI has been pushing across its portfolio.

The growth math

• $350M in planned investment from CPE gets pointed at new builds, revamps, and brand heat (think digital deals, delivery, and localized items).
• A path to 4,000+ stores by 2035 means opening well over 200 restaurants a year on average — ambitious, but in line with how big brands build density in China’s largest cities and rising lower-tier markets.
• If the rollout sticks, RBI gains a bigger royalty stream with less direct capital at risk — classic “asset-light” thinking.

Quick-service players are crowding the field in China. Consumers are watching prices, and local chains move fast. Even so, big US brands are reorganizing to chase durable growth: just last week, another coffee giant announced a new China joint venture structure with a local asset manager. The message is consistent — local partners, bigger bets, tighter execution.

What to watch next

• Regulatory approvals and closing timing in early 2026.
• Store opening cadence in 2026–2027 — early momentum will hint at whether 4,000+ by 2035 is realistic.
• Menu localization (chicken, spice, sides, breakfast) and delivery partnerships that can drive frequency.
• Unit economics: development costs, payback periods, and whether value promotions can scale without squeezing margins.
• RBI’s stock reaction as investors assess the royalty upside against execution risk.

Bottom line: RBI is swapping control for speed and scale. With CPE in the driver’s seat and fresh capital on tap, Burger King is gearing up for a bigger bite of China’s burger market — one new restaurant at a time.