How is Burger King Performing?

The following report offers a comprehensive overview of Burger King’s current position and outlook, both as an overall brand and as a tenant within the single-tenant net lease commercial real estate market.

In 2024, Burger King’s average unit volume (AUV) in the U.S. was $1.63 million, reflecting average sales per location. System-wide sales in the U.S. totaled $10.98 billion across 6,701 locations.

Burger King’s system-wide sales in the U.S. grew modestly by 0.2% year-over-year from 2023 to 2024. Average franchisee EBITDA, referred to as “Home Market Franchisee Profitability”, held steady at $205,000—flat from 2023 but up 46% from $140,000 in 2022, according to parent company Restaurant Brands International.

While year-over-year sales growth in 2024 was minimal, these figures reflect ongoing efforts to stabilize operations and re-position the brand for long-term growth.

Company News

Burger King remains focused on executing their long-term strategy, dubbed “reclaim the flame.” It is designed to accelerate sales growth and drive franchisee profitability.

Remodels

The firm expects to remodel 400 restaurants by year-end 2025 that are not considered modern image. Remodeled restaurants show an average sales increase of 13.3% the year after, according to QSR magazine.

Carrols Acquisition

According to Restaurant Brands International, Burger King plans to accelerate the remodeling of more than 600 Carrols locations before refranchising the majority of the acquired portfolio to new or existing smaller franchise operators over the next few years.

New Franchising Philosophy

Burger King has indicated that smaller, local operators are generally better equipped to succeed. Tom Curtis, President of Burger King, stated that they are seeking franchisees with 50 stores or less to take over its recently acquired Carrols locations.

Franchisee Bankruptcy

Consolidated Burger Holdings, which operated 57 Burger Kings in Florida and Georgia, filed for Chapter 11 bankruptcy on April 14, 2025. The company stated that its business struggled with declining revenue without proportionate decreases in rental obligations and other liabilities.

State of the Market

Burger King transaction velocity saw a 71% increase between 2023 and 2024, reflecting a strong increase in demand year-over-year, which has put downward pressure on cap rates moving into the second half of 2025. The profile of buyers who acquired Burger King properties from the start of 2024 through the second quarter of 2025 can be broken down into the following categories: individuals, corporations and private companies, and REITs, developers, investment managers, and trusts.

As debt availability continues to influence cap rates across all product types, below is a range of loan quotes for Burger King specifically.

General Loan Terms

5-year, 7-year and 10-year loan terms (available depending on lease term remaining)
6.15% – 6.55% Interest Rate (depending on franchisee guarantee)
No/minimal prepay penalty options available
25-30 Year Amortization