Restaurant Brands International buys out partners in Burger King China for US$158 million, plans restructuring
Restaurant Brands International Inc. (RBI) has acquired its partners' stakes in Burger King China for US$158m, as reported by BNN Bloomberg.
The acquisition grants RBI nearly complete ownership of the business, prompting the company to seek a new local partner to invest in and oversee operations.
The company said in a statement that it purchased interests from TFI Asia Holdings BV (TFI) and Pangaea Two Acquisition Holdings XXIII Ltd. (Cartesian).
According to Reuters, TFI played a significant role in expanding Burger King's presence in China, growing from around 60 restaurants in 2012 to approximately 1,500 by the end of 2024.
Despite this expansion, Burger King has faced challenges in the Chinese market, including softening demand and increasing competition.
In response to these challenges, RBI stated that it plans to collaborate with advisors to identify a new local partner who will invest in the business and enhance operations in the region.
This strategic move aligns with RBI's broader efforts to strengthen its presence in China, which the company sees as a compelling long-term market opportunity.
As per Reuters, RBI has also restructured its operations by forming a new segment called Restaurant Holdings. This includes its recently acquired Carrols Restaurant Group, its largest Burger King franchisee, and PLK China, which operates Popeyes in the country.
This consolidation is expected to streamline operations and improve efficiency.
Additionally, RBI remains committed to its presence in China through its partnership with Cartesian to expand Tim Hortons in the country.
As reported by RBI in a press release, the company is investing in Tims China to drive long-term growth in the market.
Despite recent challenges, including a 0.7 percent decline in Burger King's China sales, RBI maintains its long-term goal of achieving over 8 percent systemwide sales growth between 2024 and 2028, as reported by MarketWatch.
RBI is the parent company of Tim Hortons, Burger King, Popeyes, and Firehouse Subs.
