Darden Restaurants, an organization known for its chains such as Olive Garden and LongHorn Steakhouse, is planning to divest its Caribbean-food chain Bahama Breeze.
Darden operated 4,800 locations after closing 15 in May 2025 of the Bahama Breeze in the U.S now has fewer than 30 locations of Bahama Breeze to explore business options, including selling, or rebranding the remaining locations Operations will take action remain focused on its full-service brands to benefit its customer-parent business which it has, through Brand new business and risk assessments discovered.
During the last earnings call, the CEO Rick Cardenas noted that to be an interesting owner of a brand anyway appears in order that brand itself value for its operational dimensions, Related to Former and communicate how to be an good waiting two support to its restaurant brands Operations acted business path to be an better focus part of an strategy can no longer business.
If no purchase occurs, the remaining restaurant be changed to other Darden Brands, such as, Olive Garden, LongHorn SteakHouse function will represent the agreements into brand with premise.
This is all occurring against a section picture to the restuarant landscape. Instances of closures are underscored include Red Lobster and Hooters etc. Further, notes of new found due diligence of correlative revenue generating increased costs against preferred guest - economic differences versus.
That reductions are aggregate certain consumer preference, therefore closing. Darden believes this strategic opportunity will help focus on it top brands selling activities prioritize having distinct, operational learnings which has had layout in institutional value finances.
Darden Restaurants is considering “strategic alternatives” for its Bahama Breeze chain, Chief Executive Officer Rick Cardenas said https://t.co/zdeWOI0QPU
— Bloomberg (@business) June 20, 2025
Shift in Strategy as Darden Focuses on High-Performing Brands
Darden's conviction is arriving at a time that the company is experiencing steady growth in its base restaurant chains. In their most recent financial release, Darden recorded $3.27 billion in revenues for the quarter ending May 25, 2025.
Revenues for Olive Garden rose nearly 7% and LongHorn Steakhouse's revenues grew roughly 6.7%, which has Darden reaffirming their commitment to brands with historically stable returns.
Darden also noted there were significant increases in takeout and catering orders, implying that diners' habits have changed. Darden claims that while Bahama Breeze has a following, it is just not stacking up against the performance of Darden's franchised brands.
Analysts feel that selling or converting the Bahama Breeze brand could simplify some of Darden's operations and increase profitability.
Darden's decision is reminiscent of their 2014 decision to sell off Red Lobster and allow the company to rearrange and re-invest in its strongest brands and while results may vary this time, a similar outcome is possible.
While it is unclear what the future holds for the Bahama Breeze brand, the company is striving to make the transition as smooth as possible for its employees and guests.
