Burger King is accelerating its comeback in the United States by divesting company-owned locations to franchisees as part of a broader refranchising initiative. The burger chain plans to sell approximately 200 restaurants by the end of this year, with the ultimate goal of operating only about 300 company-owned locations while franchisees run the remainder of its more than 6,000 U.S. locations.
The refranchising effort follows Burger King’s acquisition of Carrols Restaurant Group in 2024 for roughly $1 billion, which added over 1,000 company-owned locations. Parent company Restaurant Brands International has committed to selling most of those restaurants back to smaller, local operators over the next seven years. Jeremy Kline, a former Burger King director of franchising, exemplifies this strategy after purchasing 16 locations in the Salt Lake City area in February.
Burger King’s turnaround strategy, launched in late 2022, has focused on marketing improvements, food quality enhancements, and restaurant renovations. The efforts have begun to yield results, with the chain recently surpassing Wendy’s to become the second-largest burger chain in the United States by system sales. In its latest quarter, Burger King reported domestic same-store sales growth of 8.5%, significantly outpacing competitor McDonald’s at 0.8%.
The refranchising strategy prioritizes local operators who live and work in their communities, representing a shift away from the preference for larger, private equity-backed franchisees. Burger King’s U.S. President Tom Curtis emphasized the importance of selecting operators with significant personal equity investment and long-term outlooks rather than short-term financial gains. This approach aims to ensure that franchisees remain accountable to their communities and invested in their restaurants’ success, ultimately supporting the chain’s broader turnaround efforts.
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