Darden to Close 14 Bahama Breeze Units; National Pension Service Raises Stake by 2.0%
Darden will close 14 of 28 Bahama Breeze restaurants by April 5, 2026, and convert the remaining locations into other Darden brands over the next 12–18 months. National Pension Service raised its stake by 2.0% to 195,699 shares, boosting its ownership to 0.17%.
1. Strategic Review Completed
Darden Restaurants has completed its comprehensive evaluation of strategic alternatives for its Bahama Breeze brand, concluding that the 28-unit Caribbean-themed chain no longer aligns with its long-term growth priorities. The review, which began in late 2025, considered options including a full sale of the brand and targeted conversions of select locations into other Darden concepts.
2. Restaurant Closures and Conversions
The company will permanently close 14 underperforming Bahama Breeze restaurants, representing 50% of the brand’s footprint. The remaining 14 locations will be converted into other Darden portfolio brands over the next 12 to 18 months. While Darden has not disclosed the specific concepts for conversion, management emphasized that these sites represent attractive real estate opportunities for high-performing concepts such as Olive Garden, LongHorn Steakhouse and Yard House.
3. Timeline and Workforce Redeployment
All 14 closing restaurants will continue operating through April 5, 2026, to minimize guest disruption. Temporary closures for conversion work will be staggered to maintain overall capacity. Darden plans to retain as many affected team members as possible by placing them into roles across its nine national brands, leveraging its standardized training programs and centralized recruiting infrastructure.
4. Growth Outlook and Financial Impact
Darden projects that these actions will not materially affect its overall financial performance, as the company expects comparable restaurant sales growth and margin expansion from the redeployed sites. The chain has reaffirmed its target of opening 65 to 70 net new restaurants in fiscal 2026, signaling confidence in its core concepts’ unit economics and site selection strategy.