The American chain Burger King announced that it will create a joint brand with CPE as a local partner to operate in China with the aim of doubling the number of establishments in the country in the next five years.
In this way, CITIC Private Equity (CPE), a group of alternative assets (venture capital and private equity) based in Beijing, will pay Restaurant Brands International (RBI), the multinational owner of Burger King, approximately $350 million to obtain up to an 83% stake in the joint venture, the chain reported in a statement.
RBI will retain the remaining 17% of Burger King China, as well as a seat on the board of directors.
The creation of the joint venture predicts an increase in the pace of development of the American brand in the Chinese market, with the goal of doubling the number of establishments in the next five years and expanding to more than 4,000 stores in 2035, the company reports.
CPE’s investment will span both restaurant expansion and marketing and menu innovation.
Read: Burger King will face a lawsuit for exaggerating the size of the Whopper
The transaction is expected to close in the first quarter of 2026, subject to customary regulatory approvals.
The announcement comes after RBI reported in February that one of its subsidiaries acquired all the stakes held by its former partners in Burger King China, Turkish food operator TFI and US private equity firm Cartesian Capital, for around $158 million in cash, to seek a new local operator as a partner.
Burger King has gone from having 60 stores in 2012 throughout China to having 1,250 stores today.
However, in recent years the economic slowdown and the rise of local competition in the Asian giant have caused some multinationals such as Starbucks and now Burger King to redesign their business strategies in the Chinese market.
“China remains one of the most exciting long-term opportunities for Burger King globally. Our recent investments and this joint venture reflect our confidence in the Chinese market,” RBI CEO Joshua Kobza said in a statement.
CPE CEO Mark Mao said they want to leverage their “commitment and deep understanding of the Chinese consumer” to “bring Burger King burgers to more customers across the country.”
With information from EFE
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