Jakarta. Sarimelati Kencana, the exclusive Pizza Hut franchise holder in Indonesia, said on Friday that its operations, ownership structure, and business strategy remain unchanged despite a global ownership transition involving the iconic restaurant chain.

The statement followed an announcement by Pizza Hut parent company Yum Brands that it plans to sell the global Pizza Hut business in a deal valued at approximately $2.7 billion.

Under the transaction, private equity firm LongRange Capital will acquire Pizza Hut’s operations outside mainland China for about $1.5 billion, while Yum China Holdings will purchase the mainland China business for roughly $1.2 billion. China is Pizza Hut’s second-largest market after the United States, accounting for about 19% of global sales.

Sarimelati stressed that the transaction at the global parent company level will not affect Pizza Hut’s operations in Indonesia.

“All Pizza Hut Restaurant outlets and the Pizza Hut Delivery network will continue operating as usual, including customer services, business partnerships, and the implementation of the company’s business strategy,” the company said in a statement.

The company also said its existing franchise agreement remains valid and that there will be no changes to its ownership structure, management control, or status as a publicly listed company on the Indonesia Stock Exchange.

“Employment relationships, operational support, and day-to-day interactions with the global principal will continue as normal throughout the transition process,” the statement said.

The reassurance comes as Sarimelati’s business recovery gains momentum. The company has reported profits for six consecutive quarters, signaling a sustained turnaround following several challenging years for the restaurant industry.

Chief Executive Officer Boy Lukito welcomed Yum Brands’ decision, describing it as a strategic move aimed at strengthening Pizza Hut’s global position.

“For Pizza Hut Indonesia, business and operational performance have continued to show positive trends over the past several quarters,” Boy said. “We will continue coordinating with the global principal throughout the transition while remaining focused on executing our growth strategy in Indonesia and delivering the best possible service to customers nationwide.”

Sarimelati also expressed support for LongRange Capital’s entry as the new owner of Pizza Hut’s global business outside China.

The sale comes as Pizza Hut seeks to revitalize growth amid intensifying competition in the global restaurant industry. In February, Yum Brands announced plans to close 250 US Pizza Hut locations, AP reported. Pizza Hut had 19,974 restaurants worldwide at the end of last year.

“Pizza Hut has long been the weak link in Yum’s portfolio,” Neil Saunders, managing director of GlobalData, wrote Tuesday. “Despite efforts to revitalize the brand and shut underperforming locations, it has become increasingly clear that pushing the division back into growth will require a level of investment and patience that Yum is just not prepared to commit to.”

Pizza Hut was founded in 1958 in Wichita, Kansas, by two brothers who borrowed $600 from their mother to open the store. They chose the name because their sign only had room for eight letters.

Pizza Hut’s familiar red roof debuted in 1969, and by 1971, it was the top pizza chain in the world by sales. PepsiCo acquired Pizza Hut in 1977 but spun off its restaurant division — which became Yum Brands — in 1997.

By the 1980s, Domino's was the fastest-growing U.S. pizza company, buoyed by its promise of 30-minute delivery. As pizza carryout and delivery grew in popularity, Pizza Hut was saddled with large, dine-in restaurants. In 2020, even as pizza delivery boomed during the COVID-19 pandemic, Pizza Hut closed 300 US restaurants.

The chain has been further pinched in recent years by the growth of DoorDash, Uber Eats, and other restaurant delivery companies, which have marketed access to a slew of cuisines besides pizza.

By selling Pizza Hut, Yum Brands can focus more on its brands with stronger sales, Yum CEO Chris Turner said.

“Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry," Turner said in a statement.

Connecticut-based LongRange Capital was founded in 2019 by Bob Berlin, who previously engineered a turnaround at Arby's when he led private equity investments at The Baupost Group. Berlin said Tuesday he looked forward to working with Pizza Hut's executive team and franchisees “to drive its next phase of growth.”

“Pizza Hut is a beloved global brand with a rich heritage and a loyal customer base that few brands can match,” Berlin said in a statement.