Restaurant Brands International Inc. ( QSR ) shares are trading higher on Monday after the company announced a joint venture for Burger King China, with CPE to drive growth for the Burger King brand in the country.

QSR is building positive momentum. Get the scoop here

As per the terms, a wholly owned Burger King China affiliate will enter a 20-year master development agreement, securing exclusive rights to grow the brand in China.

JV Details

The deal is expected to close in the first quarter of 2026, pending regulatory approvals.

Post deal closure, CPE will inject $350 million of new capital into the joint venture, "Burger King China".

The funding is to support restaurant expansion, marketing, menu innovation, and operations in one of the fastest-growing consumer markets.

After closing, CPE will hold approximately 83% of Burger King China, with RBI retaining a 17% minority stake, along with a seat on the Board of Directors.

Following the transaction, RBI will begin recognizing royalties from the business in its International segment, gradually increasing to the full historical rate.

Strategy & Benefits

The agreement reflects RBI's strategy of partnering with experienced local operators while keeping a primarily franchised global model.

The partnership builds on recent momentum, with improved operations, stronger marketing, rising sales, and enhanced guest engagement laying the groundwork for the brand's next phase of growth.

With this deal, RBI aims to double Burger King China restaurants within five years and exceed 4,000 locations by 2035 (vs. 1,250 locations today). This growth enhances the company's visibility toward achieving its 5%+ net restaurant growth target toward the end of 2024–2028.

Joshua Kobza, CEO of RBI, added, "China remains one of the most exciting long-term opportunities for Burger King globally. Our recent investments and this joint venture underscore our confidence in the Chinese market."

Recent Earnings

Restaurant Brands reported third-quarter adjusted earnings per share of $1.03, beating the analyst consensus estimate of $1 and sales of $2.449 billion outpaced the Street view of $2.395 billion, led by Burger King's performance.

Price Action: QSR shares are up 1.96% at $69.06% premarket at the time of publication on Monday, according to Benzinga Pro data.

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