Burger King is pursuing a major refranchising initiative to accelerate its U.S. comeback strategy, with plans to sell roughly 200 company-operated locations to franchisees by the end of 2026. The burger chain’s parent company, Restaurant Brands International, acquired burger chain’s largest U.S. franchisee Carrols Restaurant Group in 2024, bringing over 1,000 company-operated locations into its portfolio. The long-term goal is to maintain approximately 300 company-operated restaurants while franchisees operate the remainder of Burger King’s more than 6,000 U.S. locations.
The refranchising effort comes as Burger King’s turnaround strategy has begun showing results. Since implementing the initiative in late 2022, the chain has focused on marketing improvements, food quality enhancements, and restaurant renovations. Recently, Burger King overtook Wendy’s to become the second-largest burger chain in the U.S. by system sales. In its latest quarter, the chain reported domestic same-store sales growth of 8.5%, significantly outpacing McDonald’s U.S. same-store sales increase of 0.8%.
Burger King is emphasizing a shift toward smaller, locally-focused operators rather than large private equity-backed franchisees. The company prioritizes franchisees who live and work in the communities they serve, believing that local ownership increases accountability and restaurant performance. Burger King U.S. President Tom Curtis noted that the chain seeks operators with significant personal equity investment and long-term outlooks rather than those focused on short-term financial gains. This strategy differs from other restaurant chains that often rely on private equity partners for capital access.
One example of Burger King’s new franchisee approach is Jeremy Kline, who previously served as director of franchising for Burger King North America before purchasing 16 locations in the Salt Lake City area in February. Kline relocated from Miami to Utah to operate his franchise personally. Several other new franchisees have also come from Burger King’s corporate ranks or from its sister chain Tim Hortons. The refranchising initiative is expected to generate cash for Restaurant Brands while creating an asset-light business model that typically produces higher earnings for the parent company.
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