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Darden Eating places is mulling the way forward for its Bahama Breeze chain.
CEO Rick Cardenas informed analysts and traders on Friday that the corporate “will be considering strategic alternatives” for Bahamas Breeze, reminiscent of promoting the chain or “converting restaurants to other Darden brands.”
Darden operated 28 Bahama Breeze eating places as of late Could. Its restaurant rely for the chain shrank to that degree after Darden’s closed 15 places throughout that month, Cardenas mentioned in the course of the earnings name.
A automobile sits parked exterior of a Darden Eating places Inc. Bahama Breeze Island Grille location in Schaumburg, Illinois on Thursday, Jun. 22, 2017. (Daniel Acker/Bloomberg through Getty Pictures)
The corporate not too long ago carried out strategic planning for its varied chains.
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Cardenas defined that Darden made the “difficult decision” that Bahama Breeze’s remaining 28 eating places and its model “are not a strategic priority for us” after that course of and additional assessment.
“We also believe that this brand and these restaurants have the potential to benefit from a new owner,” he informed analysts and traders.
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 Pictures)
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 take a look at “strategic alternatives” for Bahama Breeze, the CEO of the chain’s dad or mum firm additionally mentioned Darden was “not going to be putting a lot of investment into Bahama Breeze.”
Darden got here to the conclusion that Bahama Breeze “doesn’t meet the criteria anymore” for its portfolio of restaurant manufacturers, he additionally mentioned.
Signage is displayed exterior of a Darden Eating places Inc. Bahama Breeze Island Grille location in Schaumburg, Illinois on Thursday, Jun. 22, 2017. (Daniel Acker/Bloomberg through Getty Pictures)
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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 alternatives” 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 in the course of the closing quarter of its fiscal 2025 yr, a ten.6% improve 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 winning strategy, anchored in our four competitive advantages and being brilliant with the basics, led to a successful year,” Cardenas mentioned. “Our strategy remains the right one for the company, and we will continue to execute it to drive growth and long-term shareholder value.”
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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.
