Is Burger King Really Going Out Of Business? The Truth About The King's Reign In 2025

For years, whispers have circulated about the potential downfall of Burger King. In 2025, these rumors persist, prompting many to question the financial stability and future of the iconic fast-food chain.

Is Burger King truly on the brink of collapse, or is this just another unfounded internet rumor? Let's examine the facts and separate fiction from reality.

Recent Financial Performance: A Mixed Bag

Burger King's parent company, Restaurant Brands International (RBI), has reported some impressive figures. RBI's Q4 2024 earnings showcased a notable 26.2% year-on-year growth, with revenues reaching $2.3 billion. This surge was significantly propelled by the strong performance of leading brands, Burger King and Tim Hortons.

However, these high-level figures don't tell the whole story. While Burger King's global revenue is expected to exceed $23 billion in 2024, a 6% increase from the previous year, the brand value lags behind industry leaders such as Starbucks and McDonald's.

Burger King's brand value is estimated at $5.2 billion in 2024, ranking ninth among the top ten valuable global restaurant brands.

In 2023, Burger King generated a global revenue of $1.3 billion, with the majority of this revenue coming from its franchise and property segment, which contributed $1.2 billion. This highlights the importance of franchising to Burger King’s business model.

Store Closures: Addressing Underperformance

It's true that Burger King has been closing some stores. Restaurant Business Magazine reported that Burger King closed nearly 300 locations in 2023's fourth quarter. RBI typically closes a couple hundred stores each year.

Moreover, Consolidated Burger Holdings, a Burger King franchisee operating 57 locations in Georgia and Florida, filed for Chapter 11 bankruptcy after closing 18 restaurants. This franchisee reported $67 million in sales and an operating loss of $12.5 million in the 2024 fiscal year.

However, it's crucial to understand that these closures don't necessarily indicate a company-wide collapse. Closing underperforming stores is a common practice in the fast-food industry and can be a strategic move to improve overall profitability.

The Reclaim the Flame Initiative: A Plan for Revitalization

Burger King is actively working to revitalize its brand through the Reclaim the Flame plan, launched in 2022. This ambitious initiative involves significant investments in restaurant upgrades, technology, and advertising. RBI is investing up to $700 million through year-end 2028, including advertising and digital investments (Fuel the Flame) and high-quality remodels and relocations (Royal Reset).

As part of this plan, Burger King aims to revamp up to 90% of its locations by 2028. In 2024, 370 locations were remodeled, and another 400 are slated for renovation in 2025. These remodels feature optimized self-service kiosks, sleek new decor, and improved mobile-order pickup systems.

Burger King is also focused on menu innovation. The Steakhouse Bacon Whopper joined the menu in 2025, and the chain has been experimenting with limited-time Whoppers inspired by customer creativity.

Embracing Technology and Adapting to Changing Consumer Preferences

Burger King is implementing new technology to optimize workflows and engage team members. This includes dedicated pickup areas and signage for mobile orders, as well as drive-thru mobile order pickup options.

Furthermore, Burger King is focused on improving its digital services, being more environmentally friendly, and creating new ideas to meet changing customer needs. Digital sales, including app and online orders, made up 30% of Burger King's total sales.

The loyalty program has more than 30 million active members worldwide, increasing customer retention by 12%.

Strategic Acquisitions and Global Expansion

RBI acquired Carrols Restaurant Group, the largest Burger King franchisee, for $1 billion in 2024. This acquisition is expected to streamline operations and leverage local market insights to reignite growth. The company is also focused on global expansion, particularly in the Asia-Pacific and Indian subcontinent regions.

The Verdict: Not Going Out of Business, But Evolving

While Burger King faces challenges, including store closures and intense competition, the company is not going out of business.

The Reclaim the Flame plan, strategic acquisitions, and focus on innovation demonstrate a commitment to revitalizing the brand and adapting to changing consumer preferences.

Burger King is working to modernize its image, improve customer experience, and enhance franchisee profitability. While there may be some bumps along the road, the King is determined to maintain its reign in the fast-food industry.