Goldman Sachs in exclusive talks for Burger King Japan acquisition

Burger King's Asia business is going through major changes as Goldman Sachs enters exclusive talks for its Japan unit and its parent company sells most of its China arm to local private equity firm

Hong Kong-based investment fund Affinity Equity Partners has given Goldman Sachs exclusive rights to negotiate the sale of Burger King’s operations in Japan, according to a report by Nikkei Asia on Monday.

 

The potential deal is estimated at around 70 billion yen ($452 million). Burger King has been growing steadily in Japan, and Goldman Sachs is expected to support the chain’s expansion by using its investment experience and strong presence in the global food service industry.

Parent company sells majority stake in Burger King China

 

Restaurant Brands International, the New York-listed parent company of Burger King, has also decided to sell a majority stake in its China business to Chinese private equity firm CPE for $350 million. The move comes as Western brands look for ways to strengthen their presence in China.

 

 

Under the agreement, CPE will acquire about 83 per cent of Burger King China, while Restaurant Brands International will keep 17 per cent and retain a board seat. Restaurant Brands International said that the decision supports its global strategy of working with experienced local partners while continuing its mostly franchised business model, the news report said.

 

Restaurant Brands International said last week that the new joint venture aims to accelerate Burger King’s growth in China. The partners plan to double the number of outlets in the next five years and expand to more than 4,000 restaurants by 2035.

 

Restaurant Brands International, which also owns Canada’s Tim Hortons and US fried chicken chain Popeyes, took full control of Burger King China in February for about $158 million. Since then, it had been searching for a strong local investor to take the lead and inject fresh capital into the business.   

Western food chains lean on local partners in China

 

More US restaurant chains are turning to local investors as China’s consumer spending slows and foreign private equity firms become more cautious. The Burger King China sale mirrors a recent step by Starbucks, which agreed to sell a 60 per cent stake in its China arm to Boyu Capital, a private equity firm linked to Alvin Jiang, grandson of former Chinese President Jiang Zemin.

 

As of the end of 2024, Burger King operated 1,474 stores in China, making it Restaurant Brands International’s largest market worldwide. But the performance has lagged: average sales were about $400,000 per restaurant, far lower than Burger King France, which recorded $3.8 million per location.