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Burger King’s plan to shift many company-operated U.S. restaurants to smaller, locally based franchisees is one part of a broader turnaround—not a standalone explanation for its improving performance. Restaurant Brands International (RBI) says the strategy pairs restaurant remodels and local ownership with advertising, digital investment, technology and operational changes. The company has reported progress on sales, guest experience and franchisee profitability, while key ownership and modernization goals remain targets rather than completed results.
Why did Burger King buy Carrols?
In January 2024, RBI announced that Burger King would acquire Carrols Restaurant Group, then its largest U.S. franchisee. The deal gave Burger King control of a large restaurant portfolio that it could upgrade before transferring many locations to franchisees. RBI said it planned to invest approximately $500 million, funded by Carrols operating cash flow, to remodel about 600 acquired restaurants that did not meet Burger King’s modern-image standard. RBI’s acquisition announcement described Carrols’ experienced team and Burger King’s operations team as working together during the transition.
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RBI said it ultimately planned to refranchise most of the acquired restaurants to new or existing smaller operators who live in their local communities. The company expected that process to take five to seven years. It also said Burger King would retain a smaller company-operated restaurant base for strategic innovation, training and operator development. Those were plans announced in 2024; they do not establish that all the remodels or transfers have since taken place.
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Reclaim the Flame is RBI’s multiyear program to accelerate Burger King sales growth and franchisee profitability. It includes both customer-facing investment and upgrades to restaurants, so the local-franchisee strategy sits within a larger package of changes.
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| Program area | What RBI says it covers | Reported status or target |
|---|---|---|
| Fuel the Flame | Advertising and digital investment | RBI said these investments were completed in the fourth quarter of 2024. |
| Royal Reset | Restaurant remodels and relocations, technology, kitchen equipment and building enhancements | As of June 30, 2025, RBI said it had funded $152 million of up to $550 million planned for Royal Reset. |
| Overall program | Fuel the Flame plus Royal Reset | RBI’s second-quarter 2025 filing described up to $700 million of planned investment through 2028. |
In a separate 2024 announcement, RBI set a goal for 85% to 90% of U.S. Burger King restaurants to reach modern image by 2028. That is a company target, not a current verified completion rate. The program’s funding and timing are described in RBI’s modern-image investment announcement and its second-quarter 2025 results filing.
Why put restaurants in local franchisees’ hands?
RBI’s stated approach is to upgrade many restaurants first, then place most of the acquired Carrols locations with smaller franchisees who live in the communities they serve. Local operators can bring direct oversight and local market knowledge, while franchise ownership shifts day-to-day operating responsibility away from Burger King’s corporate portfolio. The company has not presented local ownership alone as the cause of the turnaround: its plan also relies on marketing, digital work, remodeling, technology, equipment and operational execution.
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- Treat someone to flame-grilled flavor they won't forget, from the iconic Whopper to Chicken Fries, snackable sides and refreshing drinks.
- Great for fans of bold taste and undeniable flavor. Perfect for friends, coworkers, road trippers or anyone who deserves a break from the ordinary.
- Accepted at Burger King restaurants across the U.S., and valid on everything from breakfast sandwiches to late-night cravings.
- Redeemable in-store, online or through the BK app at participating locations.
Keeping some company-operated restaurants gives Burger King a different tool: RBI says those locations can support innovation, training and the development of operators. The strategy therefore balances a large franchisee-operated network with a smaller corporate footprint, rather than eliminating company restaurants altogether.
Is Burger King’s comeback working?
At its 2026 Investor Day, RBI reported several measures it says improved during Reclaim the Flame. These are company-reported figures and should not be read as independent verification or proof that any single initiative caused the change.
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- Great for fans of bold taste and undeniable flavor. Perfect for friends, coworkers, road trippers or anyone who deserves a break from the ordinary.
- Accepted at Burger King restaurants across the U.S., and valid on everything from breakfast sandwiches to late-night cravings.
- Redeemable in-store, online or through the BK app at participating locations.
- Modern-image penetration: RBI reported an increase from 37% in 2021 to 58% in 2025.
- Guest experience: RBI said Burger King rose from 10th to 6th in industry guest-experience rankings.
- Franchisee profitability: RBI described a low of around $125,000, followed by approximately $205,000 in both 2023 and 2024. It also said profitability grew in 2025 when its discussion adjusted for temporary beef inflation and advertising-fund transfers.
- Comparable sales: RBI said the brand had outperformed the burger quick-service restaurant industry for four years since Reclaim the Flame launched in 2022.
The measures cover different things: restaurant appearance, guest experience, franchisee economics and sales performance. Together they indicate progress in RBI’s account, but they do not show how much of that progress came from refranchising rather than the broader investment and operating program. RBI’s 2026 Investor Day update is the source for these reported comparisons.
What are the next refranchising targets?
RBI’s 2026 update said it was actively working to refranchise its U.S. company restaurant portfolio to a base of approximately 300 to 500 “home-market” restaurants by the end of 2027, with a long-term target of around 300 restaurants across selected markets. These are broader company-portfolio targets; they are distinct from the 2024 expectation to refranchise most of the acquired Carrols restaurants over five to seven years. RBI’s 2025 Form 10-K, filed in 2026, likewise said the company planned to refranchise the vast majority of Carrols restaurants.
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How is the advertising-fund contribution tied to profitability?
RBI reported that franchisees voted to continue an elevated contribution of 4.5% of sales to the advertising fund through at least 2027, with 97% of voting franchisees supporting the extension. For 2028, RBI said the rate would continue only if Burger King reaches $230,000 in franchisee profitability by the end of 2027 or franchisees vote again to extend it. The 2028 continuation is conditional, not automatic; RBI reported these terms in its 2026 Investor Day update.
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What could slow the strategy?
The model depends on franchisees being willing and able to take on restaurants and invest alongside the brand. RBI’s disclosures also identify financial stability, remodel execution, technology deployment, competition and the health of the franchised business model as risks. If operators cannot support the investment or upgrades prove difficult to execute, the planned transfer and modernization timetable could be affected. RBI’s targets should therefore be treated as management expectations, not guaranteed outcomes.
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