
Burger King
Food & Beverage · Quick-Service Restaurants
- Avg unit volume
- $1.6M
- Royalty
- 4.5%
of weekly Net Sales
About Burger King
Burger King, often referred to as BK, is an American fast food chain that specializes in serving flame-grilled burgers. Headquartered in Miami, Florida, the company has a rich history that dates back to its founding in 1953. Burger King was established by Keith J. Kramer and Matthew Burns as Insta-Burger King in Jacksonville, Florida. It primarily sold burgers that were cooked using an innovative grill called the Insta-Broiler. In 1954, the company experienced financial difficulties, prompting the two founders to sell their rights to a franchisee named James McLamore. Under McLamore's leadership, the brand was restructured and renamed to Burger King. By 1957, the first Burger King restaurant was opened in Miami, where the company's headquarters continue to operate to this day. In 1967, Burger King introduced its signature “Whopper” sandwich, which quickly became its best-selling product. Burger King operates globally, with over 17,800 restaurants in more than 100 countries. The company has established a strong presence through a combination of company-owned and franchised locations. Notable subsidiaries include Restaurant Brands International, the parent company of Burger King, which also owns Tim Hortons and Popeyes Louisiana Kitchen. The fast-food giant offers a range of products, including flame-grilled burgers, chicken sandwiches, salads, fries, shakes, and desserts. With a focus on high-quality ingredients and customization, Burger King appeals to a diverse customer base. In terms of the company's market position, Burger King is one of the largest fast-food chains worldwide. It competes fiercely with other fast-food giants such as McDonald's and Wendy's. While McDonald's holds a higher market share globally, Burger King continuously seeks to differentiate itself through its unique offerings and marketing campaigns. Over the years, Burger King has experienced several noteworthy events and changes in strategy. In 2014, the company merged with Canadian-based Tim Hortons, forming Restaurant Brands International. This merger aimed to enhance global expansion efforts and leverage synergies between the brands. In recent years, Burger King has innovated its product lineup by introducing plant-based options, such as the Impossible Whopper, to cater to the growing demand for vegetarian and vegan alternatives. As of the latest updates, Burger King continues to expand its international footprint and uphold its commitment to customer satisfaction. The company remains a prominent player in the fast-food industry, constantly adapting to changing consumer preferences while striving to deliver delicious and affordable meals to its loyal customers.
Key terms
- Franchise fee
$50k
- 2024 Multi-Unit New Development Incentive Program
Reduced royalty rates and advertising contributions for Restaurants opened under MTRA; deposit amounts credited toward franchise fees in first and last MTRA years.
- Reduced or waived franchise/successor fee (limited circumstances)
May reduce or waive fees when taking over operations from a distressed franchisee or reopening a recently closed Restaurant.
- TRA/MTRA deposits credit
TRA deposit 5000 per opening and MTRA deposit 10000 per opening credited against the initial franchise fee upon opening if fee exceeds the deposit.
- Brand fund
4.0% of Net Sales
- Local advertising
2.0% of Net Sales
- Development Agreement prepaid initial franchise fees
$50k
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2025 filing); filings on file: 2024, 2025.
Growth
- Total locations5524
Franchised units open at year-end
- New openings63
Gross new units opened during the calendar year
- 1-year unit growth rate-16.8%
Net unit growth versus prior year
- 3-year unit CAGR-11.1%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio0.1×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)$1.7M
Consolidated average Gross Sales for Traditional Restaurants for the 12-month period ended Dec 31, 2024.
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate1.5%
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$3.4M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open—
Midpoint of average time from agreement to opening
- Royalty rate4.5%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio0.5×
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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