Darden Restaurants has concluded its evaluation of strategic alternatives for the Caribbean-themed Bahama Breeze chain, determining that 14 of the brand’s 28 locations will close permanently while the remaining 14 will be converted to other Darden concepts over the next 12 to 18 months. The company, which had previously signaled that Bahama Breeze no longer aligned with its long-term growth priorities, tested options including a sale or outright conversion. Management expects the closures and conversions to have no material impact on full-year financial results, reflecting confidence in the underlying real estate and the scalability of other portfolio brands.

In its December investor release, Darden reiterated guidance for 65 to 70 new restaurant openings in fiscal 2026, underscoring continued expansion across core concepts such as Olive Garden, LongHorn Steakhouse and its premium casual portfolio. The targeted unit growth, representing a roughly 10% increase in systemwide footprint, highlights management’s emphasis on high-return markets and unit-level economics. Darden believes converting vacated Bahama Breeze sites into established brands will accelerate market penetration, offsetting the modest reduction in overall location count.

The National Pension Service raised its position in Darden by 2.0% during the third quarter, acquiring an additional 3,903 shares to reach 195,699 total shares, representing 0.17% ownership valued at $37.3 million. Vanguard Group also increased its stake by 2.1% to 14.06 million shares, while State Street Corp and Charles Schwab Investment Management added 2.1% and 1.9% respectively. Collectively, institutional investors now own over 93% of Darden’s shares, signaling broad confidence in the company’s brand-mix optimization and unit-growth strategy.