Burger King Targets Turnaround with $400m Modernisation Push

Burger King is stepping up efforts to revive its struggling U.S. business, announcing major investment in remodels and a reshaping of its franchise model, as parent company Restaurant Brands International (RBI) reported mixed quarterly results.

Multiple franchise bankruptcies have hit the burger chain in recent years. To stabilise operations, Burger King acquired the Carol’s Restaurant Group, adding around 400 outlets to its company-owned portfolio. These sites will be refurbished and transferred to what CEO Josh Kobza described as “more engaged, smaller owner operators,” with the goal of strengthening long-term performance.

Three-Part Turnaround Plan

Burger King’s leadership is pinning its recovery on three key moves:

1. Franchise Fix

Refranchising company-owned restaurants to stronger operators is central to the brand’s “healthier, more competitive” system, according to Kobza.

2. Value Refresh

Burger King continues to push value platforms, with deals such as $5 duos and $7 trios proving popular alongside premium launches like the Steakhouse Bacon Whopper. The company plans to rotate and refresh promotions rather than cut prices further.

3. Modernisation Drive

Around $400 million is being invested in store remodels and kitchen upgrades. Kobza highlighted that “remodelled restaurants that achieve an A-grade generate 30% higher profitability than the system average.” Burger King aims for a consistent modern image across all U.S. locations by 2030, with over half already renovated since the turnaround began.

International Growth Offers Lessons

While U.S. sales remain relatively flat — down 1.1% in the first quarter but up 1.5% in the second — Burger King’s international markets are performing more strongly.

In the UK, delivery growth, a £4.99 King Box value platform, and premium launches such as the Memphis Barbecue King Double have driven market share gains. In Germany, operational improvements and the launch of a new tortilla range boosted sales momentum. Both markets are seen as models for potential menu innovation in the U.S.

Mixed Results for Parent Company

RBI, which also owns Tim Hortons and Popeyes, reported quarterly revenue of $2.41 billion, exceeding analyst expectations of $2.32 billion. Adjusted earnings per share came in at $0.94, below forecasts of $0.97.

Tim Hortons posted same-store sales growth of 3.4%, supported by new breakfast products and high-profile marketing. Popeyes lagged, with a 1.4% sales decline, though this marked an improvement on the previous quarter. Burger King’s global same-store sales rose 1.3%, with stronger growth internationally than in the U.S.

Shares in RBI fell more than 4% following the earnings release.

Outlook

Burger King aims to have 85% of its U.S. restaurants modernised by 2028 and a unified modern image by 2030. Leadership maintains that the “Reclaim the Flame” plan is helping the chain regain ground in a competitive quick-service market. However, rising commodity costs and shifting consumer habits continue to pose challenges.