Restaurant Brands International (RBI) recently secured a $350 million investment for its Burger King China division, as part of a new joint venture with China-based alternative asset manager, CPE. This significant investment will support Burger King’s restaurant expansion, marketing initiatives, menu innovation, and operational processes within China.
The main objective of this joint venture is to extend Burger King’s presence in China from its current standing of 1,250 restaurants to a staggering figure of more than 4,000 by 2035. Joshua Kobza, the CEO of RBI, expressed his excitement about the opportunity, stating that China remains one of the most exhilarating long-term prospects for Burger King on a global scale. He further added that the new joint venture and recent investments highlight their confidence in the Chinese market.
Kobza also mentioned that this partnership with CPE would help unlock the full potential of the business. This is achievable by amalgamating Burger King’s globally recognized brand and large scale with CPE’s local market insights and operational expertise.
Upon the completion of this transaction, which is anticipated to occur in the first quarter of the upcoming year, CPE will hold an estimated 83% of Burger King China, while RBI will retain about 17%. An essential part of this deal entails that a wholly owned affiliate of Burger King China will sign a 20-year master development agreement. This agreement will provide the affiliate exclusive rights to develop the Burger King brand within the Chinese market.
This strategic move aligns perfectly with RBI’s approach of teaming up with seasoned local operators and investors. Their shared goal is to drive profitable growth while maintaining a predominantly franchised business model globally. In line with this, the company aims to hit a target of 5% or more net restaurant growth by the end of its 2024–2028 outlook period.
RBI’s transaction follows another recent investment, where it acquired stakes in Burger King China from its local franchisee for approximately $158 million in February.
What is the main objective of the joint venture between RBI and CPE?
The goal is to extend Burger King’s presence in China from its current standing of 1,250 restaurants to more than 4,000 by 2035.
Who will hold the majority stake in Burger King China after the transaction is completed?
CPE will own approximately 83% of Burger King China, with RBI holding the remaining approximately 17%.
What is the net restaurant growth target that RBI aims to achieve by the end of its 2024–2028 outlook period?
RBI targets a 5% or more net restaurant growth by the end of this period.
