On November 10, 2025, asset management firm CPE Yuanfeng entered a strategic partnership with Restaurant Brands International (RBI), the parent company of Burger King, acquiring an 83% stake in Burger King China for $350 million. The two parties established a joint venture and signed a 20-year exclusive brand development agreement. This deal, coming just six days after Starbucks sold a majority stake in its China operations to Boyu Capital, marks another landmark event in foreign F&B brands accelerating the introduction of local capital, driven by both industry shifts and corporate development needs.
Key terms of the deal indicate that CPE Yuanfeng’s investment will primarily fund Burger King China’s store expansion, marketing, menu innovation, and operational improvements. The partners aim to grow Burger King China’s store count from the current 1,271 to over 4,000 by 2035 while achieving sustainable same-store sales growth. The transaction is expected to close in Q1 2026, pending regulatory approvals. RBI retains a 17% stake and will continue to hold the brand and intellectual property rights under a licensing agreement.
The immediate backdrop of this equity change is Burger King China’s recent operational struggles. Data shows its store count dropped from 1,474 at the end of 2024 to 1,271 by Q3 2025, with over 170 closures in just over half a year. Despite RBI’s $158 million buyback of Burger King China’s full equity in February 2025, a $100 million injection for localization, and the recruitment of a local management team—including former Yum China executive Chen Wenrui and ex-McDonald’s marketing VP Xue Bing—same-store sales saw only a temporary 10.5% rebound in Q3. Compared to KFC China’s 12,000+ stores and McDonald’s China nearing 10,000, Burger King’s market share remains significantly lagging.
RBI’s choice of CPE Yuanfeng as a partner reflects its emphasis on local resources and consumer sector expertise. Public records show CPE Yuanfeng manages over RMB 150 billion and has invested more than RMB 10 billion in consumer services, with a portfolio including Mixue Bingcheng, Pop Mart, and Aier Eye Hospital. Its hands-on experience in optimizing Mixue Bingcheng’s franchise system and supply chain is seen as particularly relevant to Burger King China’s expansion needs. Additionally, CPE Yuanfeng’s post-investment capabilities honed in projects like Beauty Farm’s digital transformation and Yonghe Hair Transplantation’s chain management could further support Burger King China’s operational upgrades.
Burger King China’s equity restructuring aligns with broader industry trends. Following Yum China’s 2016 partnership with Primavera Capital and Ant Group, and the recent Starbucks and Burger King deals, foreign F&B brands are increasingly adopting a “trade-control-for-local-capital-and-support” model. This shift reflects intensifying competition in China’s F&B market, where localization is critical, and global resources alone often fall short.
However, challenges remain. In the short term, Burger King China is in a transitional phase of “simultaneous closures and openings,” planning to shutter underperforming stores while adding just 40–60 new ones in 2025—far from its 2035 target of 4,000 stores. Mid-term uncertainties include management stability, as RBI’s newly formed local team lacks tenure, and CPE Yuanfeng’s potential restructuring moves. Long-term hurdles involve carving out a differentiated edge in product localization, supply chain optimization, and cost control in a market dominated by established players.
At its core, CPE Yuanfeng’s takeover represents a deep integration of local capital and foreign brands. For Burger King, it’s a pivotal chance to reverse its China downturn; for CPE Yuanfeng, a strategic expansion in consumer investments. Success hinges on execution efficiency and accurately navigating China’s F&B trends, with this collaboration potentially setting a new benchmark for foreign brand localization.
(Note: This article was created with AI assistance and does not constitute investment advice.)