Burger King China Taken Over by RBI for $158 Million. Here Are the Details

A subsidiary of Restaurant Brands International (RBI) has acquired Burger King China for $158 million. The agreement was an all-cash deal, and RBI now has a nearly 100% vested ownership in the Chinese group. Let’s take a look at what we know about this deal and what it means for the future of the fast-food restaurant in China.

Burger King China Now Owned by RBI

QSR reports that Restaurant Brands International (RBI), the parent company of Burger King, Tim Hortons, and Firehouse Subs, announced that one of its subsidiaries has purchased all equity interests in Burger King China from TFI Asian Holdings BV and Pangaea Two Acquisition Holdings XXIII, Ltd for $158 million in cash.

RBI now owns nearly 100% of the Burger King China sector and has announced that it will hire experts to help the company find a new local partner to “inject primary capital into the business and become the controlling shareholder.” Similar to its evolution in the United States in recent years, RBI stated that the long-term goal will be to collaborate with “experienced local operators while maintaining a primarily franchised business.”

In 2024, the company invested $1 billion to acquire its largest franchisee, Carrols Restaurant Group, which owned almost one of every seven Burger Kings in the United States. The decision was meant to hasten hundreds of remodels — as RBI pushed for a “Sizzle” Burger King model — and allow the company to refranchise units over the following five years. Last week, Burger King announced plans to sell sites in 2025, two years ahead, and it plans to step up its efforts in 2026. RBI now favors operators managing no more than 50 locations, with Burger King currently having 300 franchisees. That number is expected to increase to approximately 400 to 500 in the coming years.

“We are thankful for TFI’s and Cartesian’s partnership over the years and their role in expanding the brand in China,” Rafael Odorizzi, president of Asia Pacific for RBI, said in a statement “This transaction marks the beginning of a new chapter for Burger King in China and reinforces our commitment to long-term growth in the region as we identify a new local operating partner. We are committed to offering our guests high quality food and exceptional experiences in welcoming restaurants across China.”

Papa Johns May Also Be Purchased

Meanwhile, Papa Johns’ market fortunes recently improved as speculations of a possible takeover made headlines.

Semafor reported on Feb. 13 that an investment fund backed by a member of Qatar’s royal family was interested in acquiring America’s fourth-largest pizza company. Irth Capital Management, created by Matthew Bradshaw and Sheikh Mohamed “Moe” al Thani, is rumored to be looking into a potential takeover of Papa Johns, which has a $1.6 billion market capitalization. Before co-founding Irth, Bradshaw formed Durational Capital, responsible for taking Bojangles (a fried chicken franchise) and Casper (a mattress company) private in past years.

Semafor suggested that Irth manages around $200 million, so it is unclear how plans to finance a takeover bid might work. However, the publication also highlighted that al Thani spent three years at the Qatari Sovereign Wealth Fund and may have massive capital at his disposal.

Following the release of the Semafor research, Papa Johns’ shares increased significantly. Shares increased by 18% on Feb. 14 and were up 34% as of 11:31 a.m. ET on Feb. 18 over a five-day period. According to QSR, Papa Johns’ share price has struggled significantly over the past year.

In 2024, Irth purchased a 4.99% stake in Papa Johns, which fell just short of the threshold for a disclosure of its intentions.