Restaurant Brands International announced a joint venture with Chinese alternative asset manager CPE in November 2025, setting a goal of expanding Burger King’s presence in China from approximately 1,250 locations to over 4,000 within the next decade.
The Toronto-based quick-service restaurant operator reported third-quarter 2025 revenue of $2.45 billion, beating analyst estimates of $2.40 billion, driven by international expansion and Tim Horton’s performance.
Armistice Capital acquired shares in Restaurant Brands in the second quarter of 2025, building a position in the company as it implements expansion plans in 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 provided $350 million in new capital to Burger King China, funding planned investments in additional locations, brand marketing, product development and ongoing management. The joint venture aims to double the brand’s number of restaurants within five years and enable Burger King to achieve growth in one of the fastest-growing consumer markets in the world.
“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 drive the next chapter of Burger King China’s growth.”
CPE manages approximately $22 billion across its investment portfolio and has offices in major Asian financial centers such as Beijing, Shanghai and Hong Kong, as well as 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 the goal of net restaurant growth of over 5%.
The transaction follows Restaurant Brands International’s acquisition of substantially all remaining equity interest in Burger King China from former joint venture partners in February 2025. The company said it will classify Burger King China as a discontinued operation beginning in the first quarter of 2025 as it works to identify a new majority shareholder aligned with its long-term strategy.
Third quarter results and brand performance
Restaurant Brands International reported third-quarter 2025 adjusted earnings of $1.03 per diluted share, beating analyst expectations of $1.00. The company reported net income of $315 million, or 96 cents per share, down from $252 million, or 79 cents per share, a year earlier.
Systemwide sales across all markets increased 6.9% in the quarter. Comparable sales increased 4.0% worldwide, with international business increasing 6.5% and Tim Hortons locations posting growth of 4.2%.
The company’s international segment was a standout performer with same-store sales growth of 6.5% and restaurant net growth of 5.1%, driving systemwide sales growth of over 12%. Restaurants in Western Europe, China and Japan contributed to the segment’s performance. Organic adjusted operating income increased 8.8% in the quarter, putting the company on track to deliver organic adjusted operating income growth of at least 8% 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 international operations together account for approximately 70% of the company’s adjusted operating income.
Sales at Burger King’s U.S. same-store rose 3.2% in the third quarter, outperforming the broader quick-service burger 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 performance. More than half of U.S. restaurants have undergone renovations since the turnaround began, with the chain aiming to be 85% complete in its modernization program.
“We made great progress in advancing our strategic priorities in the second quarter, with improving sales trends and strong execution led by our two largest businesses, Tim Hortons and International,” Kobza said in the company’s second-quarter earnings release. “We are seeing strong franchisee alignment, effective marketing and targeted operational initiatives across the system that are driving significant improvements to the guest experience.”
Popeyes was a portfolio underperformer in the third quarter, reporting a 2.4% decline in same-store sales. The fried chicken chain has struggled to keep up with competitors, particularly in the face of price-conscious customer competition. Third quarter results showed an improvement compared to the 4.0% decline in the first quarter.
Five-year expansion outlook
Restaurant Brands International targets 40,000 restaurants, $60 billion in systemwide sales and $3.2 billion in adjusted operating income by 2028. The growth plan requires average annual results of more than 3% comparable sales, net restaurant growth of more than 5% and systemwide sales growth of more than 8%.
Around 7,000 of the new branches planned by 2028 will be in international markets. The company operates in more than 120 countries through a network of master franchise partners with proven restaurant experience and capital resources. As of the third quarter of 2025, the Company operated 32,229 restaurant locations worldwide, representing net restaurant growth of 2.8%.
Among domestic market opportunities, Tim Hortons is planning the most aggressive expansion in the United States, targeting 1,000 American locations by 2028, up from 627 at the start of 2023. The growth strategy aims to replicate Tim Hortons’ Canadian market dominance in the United States, where the brand focuses on afternoon offerings and cold drinks.
The company is targeting a 2025 dividend of $2.48 per common share per partnership unit, representing a yield of 3.5% based on current stock prices. Restaurant Brands generated free cash flow of $566 million in 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. The largest shareholders include Capital World Investors, Royal Bank of Canada and Pershing Square Capital Management.
While Armistice Capital and other funds have built new positions in restaurant brands, institutional investors such as Vanguard Group, Goldman Sachs Group and 1832 Asset Management continue to hold significant positions.
Restaurant Brands International’s market capitalization was approximately $23.45 billion as of early January 2026.
