Core Insights - Burger King's Chinese operations have been sold to a private equity firm, CPE Yuanfeng, which will hold approximately 83% of the new joint venture, with RBI retaining about 17% [1][9][12] - The transaction is expected to be completed by the first quarter of 2026 [1] Financial Performance - In Q3 2025, Burger King China reported a same-store sales growth of 10.5%, with system sales reaching approximately $1.72 billion (around 12.25 billion RMB) [2] - The company has been closing underperforming stores, reducing its total from 1,467 to 1,271 over the past six months [2][6] - System sales have declined from $804 million in 2023 to $668 million in 2024, and further down to $481 million in the first three quarters of 2025 [6] Competitive Landscape - Burger King's store count in China is significantly lower than its competitors, with KFC having over 12,000 stores and McDonald's nearing 8,000 [6] - The average annual sales per store for Burger King China were approximately $400,000, ranking it last among its top ten global markets [6] Strategic Changes - RBI Group has taken back operational control of Burger King China from TFI Group, which had been managing the brand since 2012 [7][12] - CPE Yuanfeng plans to invest the initial $350 million to support store expansion, marketing, menu innovation, and operational improvements [9][12] - The goal is to expand Burger King's store count in China to over 4,000 within the next ten years [12] Industry Trends - There is a growing trend of international restaurant brands selling their Chinese operations to local partners to better compete with domestic brands [13][14] - The shift from direct management to joint ventures or franchising is seen as a way to adapt to the fast-changing Chinese market [14][15]