Burger King to Sell 200 Restaurants to Local Franchisees in 2026

Burger King is on track to sell roughly 200 company-operated restaurants to franchisees by the end of the year, and Burger King U.S. President Tom Curtis now expects about 200 sales in 2026 — down from an initial target of 300 — as the chain prioritizes smaller, local operators for its refranchising push.

The strategy follows a turnaround that began in late 2022, focused on new marketing, better food quality and restaurant renovations. Burger King recently overtook Wendy's as the number two burger chain in the U.S. by system sales. In its latest quarter, Burger King reported domestic same-store sales growth of 8.5%, while McDonald's U.S. same-store sales rose just 0.8%.

Where do the restaurants come from?

Parent company Restaurant Brands International bought Burger King's largest U.S. franchisee, Carrols Restaurant Group, in 2024 for roughly $1 billion. The deal added 1,023 company-owned locations to the 175 that Restaurant Brands already held, largely acquired through franchisee bankruptcy sales before the turnaround.

Restaurant Brands always planned to sell most of those restaurants back to smaller, local franchisees. The end goal: about 300 company-operated restaurants, with franchisees running the rest of the more than 6,000 U.S. locations.

Why does refranchising matter for investors?

Shares of Restaurant Brands have risen about 6% over the last year, while McDonald's shares have tumbled 23%, though McDonald's market cap remains more than six times larger. Selling locations generates cash, shifts the business toward an asset-light model with higher earnings, and puts restaurants in the hands of operators who are personally invested.

"Getting these stores in the hands of better operators is a key part of the turnaround," TD Cowen analyst Andrew Charles said.

Investors will wait for the payoff. Restaurant Brands said at the Carrols closing that it would refranchise those restaurants over seven years.

Who is buying?

Jeremy Kline, a former director of franchising for Burger King North America, bought 16 locations in the Salt Lake City area in February — the same restaurants he had tried, and failed, to sell for two years. They were once owned by Meridian Restaurants Unlimited, which held more than 120 locations across nine states before filing for Chapter 11 in 2023.

"I was trying to sell these restaurants here in Salt Lake City for two years, and I couldn't really find anyone to buy them, but I saw the potential," Kline said.

Todd Jackson, Thomas Crowson and Colby Kaminer acquired 20 Florida locations in July 2025 as CKJ Management, after nearly two decades as Newk's Eatery franchisees. Kevin Haas, who marked 40 years as a Burger King franchisee in June, bought three former Carrols restaurants, bringing K&JK Enterprises to 15 locations.

What happened to private-equity buyers?

The local-first policy means fewer private-equity-backed operators. Curtis was blunt: "I would tell you that we have less of it today than we've had in many years, and we will most likely have less of that going forward. ... It really needs to be a great story of a company with a great operator who's significant equity in the business, who has a long-term outlook, not a five-year plan."

The chain screens candidates carefully — and even the buyers noticed. "We found out that Burger King came to our restaurants and interviewed our general managers and wanted to know 'Are the owners in the restaurants? Do you know who they are, how involved they are?'" Crowson said.

Is the operator playbook working?

Crowson reports CKJ's market is "up 21% year over year," with traffic up 16%. "You can raise prices and try to grow your average check, but you can't fake traffic," he said.

Kline, eight months into ownership, says customer complaints have fallen sharply. Burger King's Crown Your Career program helps managers acquire funding to buy their own restaurants.

The remodel pipeline is the next test. Restaurant Brands wants 85% to 90% of domestic restaurants to look "modern" by the end of 2028, backed by more than $1 billion in spending on remodels, equipment, tech and building enhancements.