Darden Restaurants is mulling the future of its Bahama Breeze chain.
CEO Rick Cardenas told analysts and investors on Friday that the company “will be considering strategic alternatives” for Bahamas Breeze, such as selling the chain or “converting restaurants to other Darden brands.”
Darden operated 28 Bahama Breeze restaurants as of late May. Its restaurant count for the chain shrank to that level after Darden’s closed 15 locations during that month, Cardenas said during the earnings call.
The company recently conducted strategic planning for its various chains.
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Cardenas explained that Darden made the “difficult decision” that Bahama Breeze’s remaining 28 restaurants and its brand “are not a strategic priority for us” after that process and further review.
“We also believe that this brand and these restaurants have the potential to benefit from a new owner,” he told analysts and investors.
Darden Restaurants created Bahama Breeze in the 90s. The chain is known for its Caribbean-inspired food and tropical drinks.
While discussing the decision to look at “strategic alternatives” for Bahama Breeze, the CEO of the chain’s parent company also said Darden was “not going to be putting a lot of investment into Bahama Breeze.”
Darden came to the conclusion that Bahama Breeze “doesn’t meet the criteria anymore” for its portfolio of restaurant brands, he also said.
Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, The Capital Grille, Chuy’s Seasons 52 and Eddie V’s are among the other brands under Darden’s umbrella.
The announcement that Darden was examining “strategic alternatives” for Bahama Breeze came as the Florida-based restaurant company released its fourth-quarter financial results.
Darden notched $3.27 billion in sales during the final quarter of its fiscal 2025 year, a 10.6% increase from the same three months in the prior year. Its net earnings, meanwhile, came in at $303.8 million.
“Our adherence to our winning strategy, anchored in our four competitive advantages and being brilliant with the basics, led to a successful year,” Cardenas said. “Our strategy remains the right one for the company, and we will continue to execute it to drive growth and long-term shareholder value.”
For fiscal 2026, the company projected it will see 7-8% growth in total sales.
The company’s value on a market capitalization basis hovered $26.06 billion as of early Friday afternoon.
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