Darden Restaurants, the parent company behind popular chains like Olive Garden and LongHorn Steakhouse, is exploring “strategic alternatives” for its Caribbean-inspired Bahama Breeze restaurant brand. This significant move could potentially see the chain sold to a new owner or its existing locations converted into other concepts within Darden’s extensive portfolio.
Why Bahama Breeze Isn’t a Strategic Priority Anymore
The decision follows a recent in-depth strategic planning review of Darden’s diverse portfolio of restaurant brands. CEO Rick Cardenas informed analysts and investors that, after this review, the remaining 28 Bahama Breeze locations and the brand itself are no longer considered a “strategic priority” for the company’s future direction.
Cardenas explained that despite being a Darden creation from the 1990s known for its tropical drinks and Caribbean-inspired food, Bahama Breeze “doesn’t meet the criteria anymore” for inclusion in Darden’s long-term brand lineup. Consequently, Darden will not be making significant future investments in the chain.
Potential Sale or Conversion of Locations
The exploration of strategic alternatives includes the explicit possibility of selling the Bahama Breeze chain outright. Darden believes that while it doesn’t fit their current corporate strategy, the brand and its restaurants “have the potential to benefit from a new owner” who might be better positioned to invest in its growth and maximize its potential.
Another key option being considered is converting existing Bahama Breeze restaurants into locations for other brands already under the Darden umbrella. This allows the company to retain valuable real estate while optimizing its brand mix.
This strategic evaluation comes after Darden recently closed 15 Bahama Breeze locations in the month leading up to the announcement, shrinking the chain’s footprint significantly to its current 28 restaurants as of late May.
Darden’s Overall Business Remains Robust
The news regarding Bahama Breeze was shared concurrently with Darden’s release of strong financial results for the fourth quarter of fiscal year 2025. The company reported robust total sales of $3.27 billion for the quarter, marking a notable 10.6% increase compared to the same period in the previous year. Net earnings for the quarter reached $303.8 million.
CEO Rick Cardenas highlighted the company’s success, attributing it to their adherence to a “winning strategy” centered on competitive advantages and a focus on “brilliant with the basics.” He affirmed that this strategy remains crucial for driving future growth and delivering long-term shareholder value.
Looking ahead, Darden projects continued positive performance, forecasting total sales growth of 7-8% for fiscal year 2026.
A Look at the Darden Portfolio
Bahama Breeze is just one brand under the vast Darden umbrella, which includes highly successful and nationally recognized chains such as Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, and Eddie V’s. The consideration of divesting or repurposing Bahama Breeze locations underscores Darden’s active management and optimization of its diverse collection of restaurant concepts to align with its overarching strategic goals.
As Darden continues executing its core growth strategy, the fate of the Caribbean-themed Bahama Breeze chain hangs in the balance, with a potential sale or conversion now firmly on the table.
