25-06-2025
Bahama Breeze closing: See the list of shuttered locations as Olive Garden parent Darden Restaurants mulls sale
Caribbean-inspired restaurant chain Bahama Breeze has an uncertain future. Its parent company, Darden Restaurants, closed 15 of its locations in May. Now, the organization has announced it won't be 'putting a lot of investment' into the remaining 28 Bahama Breeze locations and aims to sell the brand. Here's what to know:
What has Darden said about Bahama Breeze?
The news came during Darden's fiscal fourth-quarter earnings call on Friday, June 20.
'We have made the difficult decision that these remaining locations and the Bahama Breeze brand are not a strategic priority for us,' Ricardo Cadenas, CEO and president of Darden Restaurants, said on the call. 'We also believe that this brand and these restaurants have the potential to benefit from a new owner. Consequently, we will be considering strategic alternatives for Bahama Breeze, including a potential sale of the brand or converting restaurants to other Darden brands.'
How is Darden doing as a company?
Darden Restaurants also owns Olive Garden and LongHorn Steakhouse, both of which enjoyed growth in the most recent quarter. The Orlando-based company said same-store sales for Olive Garden and LongHorn rose 6.9% and 6.7% respectively.
The company reported total sales growth of 10.6% to $3.3 billion for the quarter, driven in part by its acquisition of Chuy's Tex Mex and the opening of new restaurants.
Shares of Darden Restaurants Inc (NYSE:DRI) are up more than 18% year to date. The stock price was essentially flat in premarket trading on Wednesday.
According to Darden, Bahama Breeze's current lead will move to another of one the organization's entities, while the president of its specialty restaurant group will lead Bahama Breeze during the current changes.
