Following Starbucks and Burger King, the operators of DQ and Papa Johns in China may be sold

Wallstreetcn
2026.02.11 05:40
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FountainVest is considering selling DQ in the Greater China region and Papa Johns operator CFB Group, with an estimated valuation of around $500 million. This continues the recent trend of international dining brands such as Starbucks and Burger King restructuring their businesses in China. CFB currently operates over 1,800 stores, and the transaction is still in the preliminary stages

Private equity firm FountainVest Partners is considering the sale of its Chinese franchise operator CFB Group, which operates the Papa John's and Dairy Queen brands in Greater China. This will be another case of an international restaurant brand restructuring its business in China, following Starbucks and Burger King.

According to Bloomberg, FountainVest is in discussions with financial advisors regarding the potential sale of CFB Group. The deal could value CFB at around $500 million. Due to the confidential nature of the discussions, these individuals requested anonymity.

The report cites informed sources stating that the considerations are still in the preliminary stages, and the formal sale process may not begin until later this year. FountainVest may also decide to hold off on selling the asset for the time being. FountainVest did not respond to requests for comment.

This move continues the trend of international restaurant brands reassessing their businesses in China. Starbucks has agreed to sell its Chinese operations to private equity firm Hillhouse Capital, while Restaurant Brands International is also selling control of Burger King China to acquisition firm CPE.

Operating Scale Exceeds 1,800 Stores

According to CFB's official website, the company operates over 1,800 stores in Greater China, including DQ's Blizzard & Burgers business, employing nearly 10,000 full-time and part-time staff.

The DQ brand is owned by Warren Buffett's Berkshire Hathaway Inc., which has approximately 7,000 stores in over 30 countries worldwide. The brand entered the Chinese market in 1992.

CFB Group also owns the local Chinese restaurant brands Brut Eatery and Jin Yaju. The company was founded in 2003, and EQT AB acquired a majority stake in 2013. FountainVest acquired shares of CFB from EQT in 2022, with the transaction amount undisclosed.

Several well-known global brands are reassessing their businesses in China. Starbucks officially announced a strategic partnership with Hillhouse Capital on November 4 last year, forming a joint venture to jointly operate Starbucks' retail business in the Chinese market.

Restaurant Brands International has also chosen to sell control of Burger King China to acquisition firm CPE, indicating that international restaurant chains are adjusting their operational strategies in the Chinese market.

FountainVest Investment Landscape

FountainVest was established in 2008 and focuses on investments in the consumer, industrial, business services, and healthcare sectors. The company has supported several enterprises, including Amer Sports Inc., which is listed in the U.S., and New Zealand-based pet food manufacturer Ziwi In July last year, FountainVest agreed to acquire shares of EuroGroup Laminations SpA, headquartered in Milan. The company has offices in Hong Kong, Shanghai, Beijing, Singapore, and Frankfurt

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