Burger King Refranchises U.S. Restaurants As It Pushes Turnaround

(RTTNews) - Burger King Worldwide Inc. (BKW) is accelerating its U.S. turnaround by selling company-operated restaurants to local franchisees, with about 200 locations expected to be refranchised by the end of 2026.

The strategy follows Restaurant Brands International's roughly $1 billion acquisition of Carrols Restaurant Group in 2024, which added more than 1,000 company-owned Burger King restaurants. The company ultimately aims to operate about 300 locations directly, with franchisees running the rest of its more than 6,000 U.S. restaurants.

The shift comes as Burger King's turnaround gains momentum. The chain reported an 8.5 percent increase in domestic same-store sales in its latest quarter and recently overtook Wendy's in U.S. systemwide sales.

Restaurant Brands has focused on marketing, food quality and restaurant renovations, committing more than $1 billion to modernise its U.S. locations. It aims for 85 percent to 90 percent of domestic restaurants to meet its modern design standards by the end of 2028.

Burger King is also prioritising franchisees with strong local involvement rather than relying heavily on private-equity-backed operators. New franchisees such as Jeremy Kline, who bought 16 restaurants in Salt Lake City, are investing in restaurant facilities, employee culture and customer service.

The company says stronger franchisee profitability is central to its strategy, with better-performing operators expected to have greater capacity to reinvest in their restaurants.