Darden Restaurants, Inc. (NYSE:DRI) shares traded higher on Tuesday after the company finalized its review of the Bahama Breeze brand.
The casual dining operator said it completed an evaluation of strategic alternatives for the Caribbean-themed chain.
Darden previously signaled that the 28 Bahama Breeze restaurants no longer fit its long-term growth priorities.
The company explored options, including a potential sale or brand conversion.
Darden now plans to permanently shut 14 Bahama Breeze restaurants and will convert the remaining 14 locations into other Darden brands.
Management said the changes should not materially affect financial performance.
Per a press release dated Dec. 18, the company sees new restaurant openings of 65 to 70 in fiscal 2026.
Timeline And Execution
The 14 locations slated for closure will continue operating through April 5, 2026. Darden expects conversions of the remaining restaurants over the next 12 to 18 months.
The restaurants will stay open until temporary closures become necessary. The company declined to name the brands planned for conversion.
Darden said the conversion sites represent attractive real estate opportunities. The company believes several portfolio brands could benefit from those locations.
The company aims to place as many affected workers as possible within its portfolio. Darden operates several national restaurant brands.
Why It Matters
The move reflects Darden's broader effort to sharpen its brand mix.
The company continues to emphasize scalable concepts with stronger unit economics.
DRI Restaurants Price Action: Darden shares are trading higher by 1.13% to $203.18 at publication on Tuesday.
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