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Darden Eating places is mulling the way forward for its Bahama Breeze chain.
CEO Rick Cardenas informed analysts and buyers on Friday that the corporate “shall be contemplating strategic alternate options” for Bahamas Breeze, reminiscent of promoting the chain or “changing eating places to different Darden manufacturers.”
Darden operated 28 Bahama Breeze eating places as of late Could. Its restaurant depend for the chain shrank to that degree after Darden’s closed 15 areas throughout that month, Cardenas mentioned through the earnings name.
A car sits parked outdoors of a Darden Eating places Inc. Bahama Breeze Island Grille location in Schaumburg, Illinois on Thursday, Jun. 22, 2017. (Daniel Acker/Bloomberg through Getty Photographs)
The corporate not too long ago performed strategic planning for its numerous chains.
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Cardenas defined that Darden made the “tough determination” that Bahama Breeze’s remaining 28 eating places and its model “usually are not a strategic precedence for us” after that course of and additional overview.
“We additionally imagine that this model and these eating places have the potential to profit from a brand new proprietor,” he informed analysts and buyers.
Signage is displayed at a Darden Eating places Inc. Bahama Breeze Island Grille location in Schaumburg, Illinois on Thursday, Jun. 22, 2017. (Daniel Acker/Bloomberg through Getty Photographs)
Darden Eating places created Bahama Breeze within the 90s. The chain is understood for its Caribbean-inspired meals and tropical drinks.
Whereas discussing the choice to have a look at “strategic alternate options” for Bahama Breeze, the CEO of the chain’s mother or father firm additionally mentioned Darden was “not going to be placing a variety of funding into Bahama Breeze.”
Darden got here to the conclusion that Bahama Breeze “doesn’t meet the standards anymore” for its portfolio of restaurant manufacturers, he additionally mentioned.
Signage is displayed outdoors of a Darden Eating places Inc. Bahama Breeze Island Grille location in Schaumburg, Illinois on Thursday, Jun. 22, 2017. (Daniel Acker/Bloomberg through Getty Photographs)
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Olive Backyard, LongHorn Steakhouse, Yard Home, Ruth’s Chris Steak Home, Cheddar’s Scratch Kitchen, The Capital Grille, Chuy’s Seasons 52 and Eddie V’s are among the many different manufacturers underneath Darden’s umbrella.
The announcement that Darden was analyzing “strategic alternate options” for Bahama Breeze got here because the Florida-based restaurant firm launched its fourth-quarter monetary outcomes.
Darden notched $3.27 billion in gross sales through the ultimate quarter of its fiscal 2025 yr, a ten.6% enhance from the identical three months within the prior yr. Its internet earnings, in the meantime, got here in at $303.8 million.
“Our adherence to our profitable technique, anchored in our 4 aggressive benefits and being sensible with the fundamentals, led to a profitable yr,” Cardenas mentioned. “Our technique stays the correct one for the corporate, and we’ll proceed to execute it to drive development and long-term shareholder worth.”
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For fiscal 2026, the corporate projected it should see 7-8% development in whole gross sales.
The corporate’s worth on a market capitalization foundation hovered $26.06 billion as of early Friday afternoon.