Burger King teams up with Cartesian to expand in China

The deal represents the largest multi-unit development agreement in Burger King's history. The joint venture will have exclusive rights to expand the Burger King brand in China, which is currently home to 63 of the hamburger chain's restaurants.

"We are very excited to expand our relationship with Burger King and further establish the brand's presence in such an exciting, active market with a vibrant economy and substantial growth potential," Erhan Kurdoglu, chairman of the new venture, said in a statement cited by The Wall Street Journal.

China has long been a focus for international fast food brands, with McDonald's, Yum Brands (owner of KFC and Pizza Hut) and Starbucks all building sizeable networks in the country. They continue to pursue aggressive expansion plans, counting on rising domestic consumption.

Burger King has more than 12,500 restaurants worldwide, of which about 90% are franchised. The burger chain was taken private in 2010 by 3G Capital in a transaction that valued at $4 billion. In April, Burger King reached a $1.4 billion deal with UK-based Justice Holdings, in a move that would return the company to be listed on the New York Stock Exchange again.

Founded in 2006, Cartesian Capital focuses on emerging markets and has investments in more than two dozen countries. The private equity firm currently manages more than $2 billion in capital and has a team of 21 professionals based in New York, Shanghai, Sao Paulo, Vienna, Warsaw, Bucharest, and Bermuda.

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• Topics
• Greater China
• Consumer
• China
• Consumer