Burger King Moves Remodel Target to 2030 as Franchisee Profits Fall

Burger King has pushed its target for remodeling at least 85% of its U.S. restaurants from 2028 to roughly 2030, according to a recent Bloomberg report. Higher beef prices have reduced the cash franchisees have available for renovations.

Burger King has invested more than $700 million in its turnaround since 2022. The first $400 million went to advertising and equipment such as registers and fryers. A second $300 million commitment in 2024 aimed to bring at least 85% of U.S. restaurants up to newer design standards by 2028. The brand also bought its largest franchisee, which ran roughly 1,000 locations, for about $1 billion to speed up the remodels.

Franchisees cover much of the renovation cost, and higher beef prices ate into their profits in 2025. That has made it harder for operators to pay for upgrades on the original schedule. Tom Curtis, president of Burger King, estimates that about 60% of U.S. restaurants currently have the newer design.

Burger King's U.S. and Canadian same-store sales have grown for five consecutive quarters, reaching 8.5% last quarter. The chain also passed Wendy's, reclaiming the No. 2 spot among U.S. burger chains by sales. Curtis told Bloomberg that Whopper sales have increased 20% since the brand introduced a new bun and improved its mayonnaise.

When Curtis joined Burger King in 2021, average annual franchisee profit was about $125,000 per restaurant, he told Bloomberg. He believes operators need to earn roughly $300,000 per location before they can start opening new restaurants. Curtis estimates the turnaround is only about a third complete. Improving franchisee profits and getting new-unit development moving again are now priorities.

Curtis was candid about the gap between the updated restaurants and the rest of the system.

"Right now, I believe we're a brand of contradictions," Curtis told Bloomberg.

That tension also shows up in Burger King's approach to AI drive-thru ordering. A system being tested can complete about 93% of orders without staff assistance, but Curtis is holding off on a broader rollout because he believes customers still prefer speaking with a person.

Burger King's delay reminds franchisees they need enough cash to handle required renovations while running their businesses. For someone considering an existing Burger King restaurant or a new development agreement, the remodel terms deserve close attention. Candidates should ask which upgrades are required, how much they will cost, when they must be completed and whether the franchisor will contribute.

The profit figures Curtis shared also deserve context. Prospective franchisees should review the Franchise Disclosure Document's Item 19, if one is provided, and speak with current franchisees about their actual results and upcoming capital expenses.

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