Restaurant Brands International announced a joint venture with Chinese alternative asset manager CPE in November 2025, setting a target to grow Burger King’s presence in China from roughly 1,250 locations to above 4,000 within the next decade.
The Toronto-based quick-service restaurant operator reported third-quarter 2025 revenue of $2.45 billion, exceeding analyst estimates of $2.40 billion, driven by international expansion and Tim Hortons performance.
Armistice Capital acquired shares of Restaurant Brands during the second quarter of 2025, establishing a position in the company as it executed expansion plans across global markets. Other institutional investors including Vanguard Group, Royal Bank of Canada, and Pershing Square Capital Management also hold significant positions.
China Joint Venture Accelerates Growth Strategy
CPE committed $350 million in new capital to Burger King China, funding planned investment in additional locations, brand marketing, product development, and day-to-day management. The joint venture aims to double the brand’s restaurant count within five years, positioning Burger King to capture growth in one of the world’s fastest-expanding consumer markets.
“China remains one of the most exciting long-term opportunities for Burger King globally,” said Joshua Kobza, CEO of Restaurant Brands International. “CPE is a well-capitalized, proven operator with exceptional leadership and extensive consumer and restaurant experience, making them an ideal partner to fuel the next chapter of Burger King China’s growth.”
CPE oversees roughly $22 billion across its investment portfolio, maintaining offices in major Asian financial centers including Beijing, Shanghai, and Hong Kong, along with Tokyo, New York, and Abu Dhabi. The partnership marks a strategic shift toward Restaurant Brands International’s stated goal of maintaining a simplified, highly franchised business model while providing greater visibility to achieve its 5%+ net restaurant growth target.
The transaction followed Restaurant Brands International’s acquisition of substantially all remaining equity interests in Burger King China from former joint venture partners in February 2025. The company reported it would classify Burger King China as a discontinued operation beginning in the first quarter of 2025 as it worked to identify a new controlling shareholder aligned with long-term strategy.
Third-Quarter Results and Brand Performance
Restaurant Brands International reported third-quarter 2025 adjusted earnings of $1.03 per diluted share, exceeding analyst expectations of $1.00. The company reported net income of $315 million, or 96 cents per share, up from $252 million, or 79 cents per share, a year earlier.
System-wide sales across all markets rose 6.9% during the quarter. Comparable sales grew 4.0% globally, with international operations advancing 6.5% and Tim Hortons locations posting 4.2% growth.
The company’s international segment emerged as the standout performer, with 6.5% same-store sales growth and 5.1% net restaurant growth driving system-wide sales growth exceeding 12%. Restaurants in Western Europe, China, and Japan fueled the segment’s performance. Organic adjusted operating income grew 8.8% during the quarter, keeping the company on track to deliver at least 8% organic adjusted operating income growth for full-year 2025.
Tim Hortons demonstrated sustained momentum with third-quarter same-store sales growth of 4.2%, marking 18 consecutive quarters of positive comparable sales. The coffee and breakfast chain’s expanded food offerings and improved iced latte recipe contributed to a 10% increase in cold beverage sales during the period. Tim Hortons and the international business combined account for roughly 70% of the company’s adjusted operating income.
Burger King U.S. same-store sales increased 3.2% in the third quarter, outperforming the broader burger quick-service restaurant category and reflecting progress in the chain’s domestic turnaround strategy. Restaurant renovations and marketing focused on core menu items like the Whopper contributed to the performance. More than half of U.S. restaurants have been renovated since the turnaround began, with the chain targeting 85% completion of its modernization program.
“We made great progress in the second quarter advancing our strategic priorities, with improved sales trends and strong execution led by our two largest businesses, Tim Hortons and International,” said Kobza in the company’s second-quarter earnings call. “Across the system, we’re seeing strong franchisee alignment, impactful marketing, and focused operational initiatives drive meaningful improvements in the guest experience.”
Popeyes emerged as the portfolio’s underperformer during the third quarter, reporting same-store sales declines of 2.4%. The fried chicken chain has struggled to maintain pace with competitors, particularly regarding value-minded customer competition. Third-quarter results showed improvement compared to the first quarter’s 4.0% decline.
Five-Year Expansion Outlook
Restaurant Brands International is targeting 40,000 restaurants, $60 billion in system-wide sales, and $3.2 billion in adjusted operating income by 2028. The growth plan requires average annual results of 3%+ comparable sales, 5%+ net restaurant growth, and 8%+ system-wide sales growth.
International markets account for approximately 7,000 of the planned new outlets through 2028. The company operates in more than 120 countries through a network of master franchisee partners with proven restaurant experience and capital resources. As of the third quarter 2025, the company maintained 32,229 restaurant locations globally, representing 2.8% net restaurant growth.
Among home market opportunities, Tim Hortons is planning the most aggressive U.S. expansion, targeting 1,000 American locations by 2028 compared to 627 at the beginning of 2023. The growth strategy aims to replicate Tim Hortons’ Canadian market dominance in the United States, where the brand emphasizes afternoon daypart offerings and cold beverages.
The company is targeting $2.48 in dividends per common share and partnership unit for 2025, representing a 3.5% yield based on recent share prices. Restaurant Brands generated $566 million in free cash flow during the third quarter of 2025, with total liquidity of approximately $2.5 billion, including $1.2 billion in cash.
Institutional Holdings and Market Position
Institutional investors own approximately 82.3% of Restaurant Brands International’s outstanding shares. Capital World Investors, Royal Bank of Canada, and Pershing Square Capital Management rank among the largest shareholders.
While Armistice Capital and other funds established new positions in Restaurant Brands, institutional investors such as Vanguard Group, Goldman Sachs Group, and 1832 Asset Management continue to hold substantial positions.
Restaurant Brands International’s market capitalization stood at approximately $23.45 billion as of early January 2026.
Read more:
Burger King’s $350M China Joint Venture Draws Armistice Capital, Other Institutional Investors