Darden is considering strategic alternatives for its Bahama Breeze restaurants, CEO Rick Cardenas said Friday during an earnings call.
In May, Darden closed 15 underperforming Bahama Breeze restaurants, leaving it with 28 high-performing units. That move, which also included the closure of an Eddie V’s location in Boston and two Seasons 52 units, said the closures would allow its smaller brands to focus on higher-performing stores that could boost performance.
Upon further review of its portfolio, Darden determined that Bahama Breeze wasn’t a strategic priority for the company and is considering either selling the restaurants or converting them to other Darden brands, Cardenas said.
Bahama Breeze has a fair amount of growth potential but could benefit with another owner, Cardenas said. Darden felt that the chain no longer met its criteria to stay within its portfolio and that it wouldn’t put a lot of investment into the brand.
This isn’t the first time Darden has sold a business that no longer fit within its strategy. The company sold Red Lobster in 2014 for $2.1 billion, allowing it to pay back debt and improve operations.
The company has seen a positive impact from its recent acquisitions, however. Following the 2023 acquisition of Ruth’s Chris, Darden increased revenue from the 74 Ruth’s Chris franchises, allowing teams to grow faster and add resources and systems to help franchisees better operate its brands, Cardenas said.
