Darden Restaurants to Close Bahama Breeze Locations and Convert Others

Written by Emily J. Thompson, Senior Investment Analyst

Source: Newsfilter

Updated: 5d ago

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DRI+1.27%

Should l Buy DRI?

Source: Newsfilter

Strategic Shift: Darden Restaurants has announced the permanent closure of 14 Bahama Breeze locations while planning to convert the remaining 14 into other brands over the next 12-18 months, indicating a reassessment and optimization of its brand portfolio.
Financial Impact: Although the closures and conversions are not expected to materially affect financial results, the company must still address employee placement issues to ensure as many team members as possible transition to roles within other Darden brands.
Operational Timeline: The 14 closing restaurants are expected to continue operations until April 5, 2026, while the conversion process will involve temporary closures as needed, ensuring a smooth transition for the business.
Market Positioning: Darden believes that the conversion locations have strong market potential that can benefit several of its other brands, demonstrating the company's focus on market opportunities and enhancing brand value during strategic adjustments.

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Analyst Views on DRI

Wall Street analysts forecast DRI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DRI is 221.82 USD with a low forecast of 200.00 USD and a high forecast of 261.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

20 Analyst Rating

12 Buy

8 Hold

0 Sell

Moderate Buy

Current: 213.560

Low

200.00

Averages

221.82

High

261.00

Current: 213.560

Low

200.00

Averages

221.82

High

261.00

Mizuho, Melius

upgrade

$208.54

2026-01-23

Reason

Mizuho, Melius

Price Target

$208.54

AI Analysis

2026-01-23

upgrade

Reason

Darden jumps 2% to $208.54 after upgrades at Mizuho, Melius

Melius Research

Hold

Buy

upgrade

$240 -> $265

2026-01-23

Reason

Melius Research

Price Target

$240 -> $265

2026-01-23

upgrade

Hold

Buy

Reason

Melius Research upgraded Darden to Buy from Hold with a price target of $265, up from $240. The firm says the company's discipline to value is driving durable traffic and market share gains. Meanwhile, beef inflation is a "timing headwind, not a structural impairment," the analyst tells investors in a research note. Melius believes Darden is intentionally absorbing elevated costs to defend steak occasions and emerge from the cycle with a larger traffic base. First-party delivery is also creating a "new incremental occasion" at Olive Garden, the firm adds. Darden this morning was also upgraded at Mizuho.

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About DRI

Darden Restaurants, Inc. is a restaurant company. The Company owns and operates full-service dining restaurants in the United States and Canada under the trade names Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's Scratch Kitchen, The Capital Grille, Chuy's, Seasons 52, Eddie V's and Bahama Breeze. It owns and operates approximately 2,140 restaurants in the United States and Canada. Its segments include Olive Garden, LongHorn Steakhouse, Fine Dining, and Other Businesses. Olive Garden is a full-service Italian dining restaurant operator in the United States. LongHorn Steakhouse is a full-service steakhouse restaurant, which features a variety of menu items including signature steaks and chicken, as well as salmon, shrimp, and burgers. Fine Dining includes Ruth’s Chris, The Capital Grille and Eddie V’s. Other businesses include Cheddar’s Scratch Kitchen, Yard House, Bahama Breeze, Seasons 52, and The Capital Burger.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Darden Restaurants to Permanently Close 14 Bahama Breeze Locations

4 days agostocktwits

Restaurant Closure Plan: Darden Restaurants announced the permanent closure of 14 Bahama Breeze locations, expected to operate until April 5, with plans to convert the remaining 14 into other Darden brands over the next 12-18 months, thereby optimizing its brand portfolio and enhancing overall business efficiency.
Strong Stock Performance: Darden's stock rose over 2% on Tuesday, marking its best day in two weeks, with a nearly 13% increase year-to-date, reflecting positive market sentiment towards its value meal initiatives and bolstering investor confidence.
Analyst Rating Upgrade: Mizuho upgraded Darden from 'Neutral' to 'Outperform' and raised its price target from $195 to $235, anticipating strong performance in the casual dining sector in 2026, positioning Darden to benefit from this trend and drive market share growth.
Cautious Consumer Spending: Despite facing pressures from rising beef prices and heavy advertising investments, Darden remains focused on improving margins, expecting to attract consumers through value meal offerings, thus maintaining stable traffic in a competitive market.

Darden Restaurants to Close 14 Bahama Breeze Locations

5 days agoseekingalpha

Strategic Shift: Darden Restaurants announced the permanent closure of 14 Bahama Breeze locations while converting the remaining 14 into other concepts, reflecting a reassessment and optimization of its brand portfolio.
Limited Financial Impact: Despite the closure of 14 restaurants, Darden anticipates that this move will not materially affect its overall financial results, indicating the company's financial resilience during the adjustment process.
Transformation Timeline: The closed units are expected to remain operational until early April, with conversions rolling out over the next 12 to 18 months, showcasing the company's strategic planning for new brand implementations.
Brand History: Since its inception in 1996 in Orlando, Bahama Breeze expanded to over 40 locations in the U.S., but as competition intensified, it became a niche player within Darden's portfolio, prompting this strategic review and adjustment.

Darden Restaurants to Close 14 Bahama Breeze Locations Amid Strategic Review

5 days agoBenzinga

Brand Strategy Shift: Darden Restaurants has completed a strategic review of the Bahama Breeze brand, deciding to close 14 locations while converting the remaining 14 into other brands, reflecting the company's reassessment of its brand mix to better align with long-term growth objectives.
Limited Financial Impact: Although the closure and conversion plan involves 28 Bahama Breeze restaurants, management asserts that these changes will not materially affect the company's financial performance, demonstrating Darden's robust strategy in brand integration.
Future Expansion Plans: Darden anticipates opening 65 to 70 new restaurants in fiscal 2026, indicating the company's commitment to expanding its market share and business scale while adjusting its brand portfolio.
Employee Placement Initiative: The company aims to place as many affected workers as possible within its other brands, reflecting Darden's sense of responsibility towards its employees and emphasizing the importance of maintaining morale and brand image during the transition.

Darden Restaurants Closes 14 Bahama Breeze Locations

5 days agoPRnewswire

Strategic Shift: Darden Restaurants has announced the closure of 14 Bahama Breeze locations while planning to convert the remaining 14 into other brands over the next 12-18 months, indicating a strategic pivot away from the Bahama Breeze brand.
Financial Impact: Although the closure and conversion involve 28 locations, the company does not expect these actions to materially affect its financial results, reflecting a strong overall financial health.
Operational Timeline: The 14 closed restaurants are expected to continue operating until April 5, 2026, with the conversion process designed to minimize customer disruption during the transition, demonstrating the company's commitment to customer service.
Employee Support Plan: Darden will prioritize the placement of affected employees into roles within its other brands, showcasing the company's responsibility and support for its team members.