Latest news with #RicardoCardenas
Yahoo
17 hours ago
- Business
- Yahoo
What's next for Bahama Breeze? Owners say big change is coming.
Owners of the Bahama Breeze restaurant chain signaled this week that the brand is no longer a priority, and they are considering selling the Caribbean-inspired chain a little over a month after shuttering over a dozen locations. Darden Restaurants CEO Ricardo Cardenas said in an earnings call on Friday, June 20 that they "will be considering strategic alternatives" for Bahama Breeze, such as selling the brand to a new owner or "converting restaurants to other Darden brands." The company's portfolio incudes Olive Garden, LongHorn Steakhouse, Ruth's Chris Steak House and Yard House, among others. Need a break? Play the USA TODAY Daily Crossword Puzzle. "After further review, we have made the difficult decision that these remaining locations and the Bahama Breeze brand are not a strategic priority for us," Cardenas said in the call. The company abruptly closed down 15 restaurant locations in mid-May, leaving what they call their 28 "highest performing" restaurants currently in operation. The company has not issued a projected timeline of either a sale or restaurant conversions and has not disclosed if there is an interested buyer. Cardenas said the company does not expect a potential sale to have a "material impact" on their financial results. The restaurants first opened in the 90's in Florida, where half of their remaining locations remain. Georgia, North Carolina, Pennsylvania and Virginia all have two locations, according to the chain's website, while the states of Delaware, Michigan, New Jersey, South Carolina and Washington have one location. The following restaurants have closed, as confirmed by a Darden Restaurants spokesperson to USA TODAY: 3989 Plaza Blvd, Gainesville, Florida 32608 2088 9th St N, Naples, Florida 34102 1786 W International Speedway Blvd, Daytona Beach, Florida 32114 2750 Sawgrass Mills Cir, Sunrise, Florida 33323 3339 N Federal Hwy, Oakland Park, Florida 33306 406 E Golf Rd, Schaumburg, Illinois 60173 413 Middlesex Rd, Tyngsborough, Massachusetts 01879 539 E Big Beaver Rd, Troy, Michigan 48083 375 Hughes Center Dr, Las Vegas, Nevada 89169 520 Woodbridge Center Dr, Woodbridge, New Jersey 07095 1201 Hooper Ave, Toms River, New Jersey 08753 101 NJ-23, Wayne, New Jersey 07470 1600 Bergen Town Center, Paramus, New Jersey 07652 612 Smith Haven Mall, Lake Grove, New York 11755 2830 N Germantown Pkwy, Memphis, Tennessee 38133 Contributing: Fernando Cervantes Jr., USA TODAY. Kathryn Palmer is a national trending news reporter for USA TODAY. You can reach her at kapalmer@ and on X @KathrynPlmr. This article originally appeared on USA TODAY: Bahama Breeze owners Darden Restaurant want to sell or convert chain Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
USA Today
17 hours ago
- Business
- USA Today
What's next for Bahama Breeze? Owners say big change is coming.
A little over a month after 15 locations were abruptly closed, owners of the Caribbean-inspired chain signal the brand could soon come to an end. Owners of the Bahama Breeze restaurant chain signaled this week that the brand is no longer a priority, and they are considering selling the Caribbean-inspired chain a little over a month after shuttering over a dozen locations. Darden Restaurants CEO Ricardo Cardenas said in an earnings call on Friday, June 21 that they "will be considering strategic alternatives" for Bahama Breeze, such as selling the brand to a new owner or "converting restaurants to other Darden brands." The company's portfolio incudes Olive Garden, LongHorn Steakhouse, Ruth's Chris Steak House and Yard House, among others. Need a break? Play the USA TODAY Daily Crossword Puzzle. "After further review, we have made the difficult decision that these remaining locations and the Bahama Breeze brand are not a strategic priority for us," Cardenas said in the call. The company abruptly closed down 15 restaurant locations in mid-May, leaving what they call their 28 "highest performing" restaurants currently in operation. The company has not issued a projected timeline of either a sale or restaurant conversions and has not disclosed if there is an interested buyer. Cardenas said the company does not expect a potential sale to have a "material impact" on their financial results. The restaurants first opened in the 90's in Florida, where half of their remaining locations remain. Georgia, North Carolina, Pennsylvania and Virginia all have two locations, according to the chain's website, while the states of Delaware, Michigan, New Jersey, South Carolina and Washington have one location. Which Bahama Breeze locations have closed? The following restaurants have closed, as confirmed by a Darden Restaurants spokesperson to USA TODAY: Contributing: Fernando Cervantes Jr., USA TODAY. Kathryn Palmer is a national trending news reporter for USA TODAY. You can reach her atkapalmer@ and on X @KathrynPlmr.
Miami Herald
21 hours ago
- Business
- Miami Herald
Struggling restaurant chain likely to shut down or be sold
Sometimes, the small things get lost when owned by a large company. In multiple cases, Chipotle shut down nascent brands because it seemed impossible for them to grow to a point where they materially impacted earnings. That's also partially why McDonald's sold its stake in Chipotle, well before the Mexican chain became the giant it has grown into. McDonald's itself recently closed down its CosMc's experiment because it made more sense to integrate some of that chain's beverage menu into the core brand rather than growing another chain. Related: Taco Bell menu tries wild items, new kind of shell It's hard to be a small brand at a company that owns multiple larger brands, because it's not worth it for management to focus efforts on your growth. When a company owns multiple major restaurant chains with high growth potential, it may not be the right owner for a smaller, more niche chain. Don't miss the move: Subscribe to TheStreet's free daily newsletter That's not a comment on whether than chain offers good food - McDonald's probably always liked the menu at Chipotle - but a decision as to where resources can best be used. Darden Restaurants Inc. (DRI) has come to that decision about one of its brands, and the end of that relationship may not be pretty. Darden has decided to walk away from the Bahama Breeze brand. That's something CEO Ricardo Cardenas talked about during his company's fourth-quarter earnings call. "We made the decision to close 15 Bahama Breeze locations in May, leaving the 28 highest-performing Bahama Breeze restaurants in our portfolio. After further review, we have made the difficult decision that these remaining locations and the Bahama Breeze brand are not a strategic priority for us. We also believe that this brand and these restaurants have the potential to benefit from a new owner," he shared. While a sale is a possibility, other options are being considered. "Consequently, we will be considering strategic alternatives for Bahama Breeze, including a potential sale of the brand, or converting restaurants to other Darden brands. Excluding any onetime potential impacts, which are unknown as of today, we do not expect these strategic alternatives including a potential sale to have a material impact on our financial results," he added. The CEO offered more color on the decision to shut down or sell Bahama Breeze. "And then lastly, on the decision on Bahama Breeze, we have, when we look at our portfolio and we try to determine what brands we add to our portfolio, we have criteria. And [those] criteria should be what we look at to keep brands in our portfolio," he shared. More Food and Retail: Another healthy fast-food chain files Chapter 11 bankruptcyCostco quietly pulls popular product, upsets fansStarbucks brings back fan-favorite menu item after 2-year hiatus Bahama Breeze, he noted, no longer fits the criteria. "And we think that they have a lot of growth potential with another owner. We were not going to be putting a lot of investment into Bahama Breeze. And so to give those team members and those managers growth opportunities, it's better for them to be under a different ownership," he added. While Bahama Breeze did not meet Darden's criteria, its Italian restaurant chain, Olive Garden, has been adding locations around the world. The company has also sold some Olive Gardens to a franchise partner. "We also signed a definitive agreement to sell the eight Olive Garden locations in Canada to Recipe Unlimited, the largest full-service operator in Canada, and we are on track to close that deal soon. These eight restaurants will become franchised and upon close, Darden and Recipe Unlimited will enter into an area development agreement to open 30 more Olive Gardens over the next 10 years," Cardenas said. Those are not the only restaurant plans for Olive Garden and other Darden brands. "In addition to the agreement with Recipe Unlimited, we also have new agreements with partners in India and Spain, each of which calls for the development of 40 Olive Garden locations as well as an agreement with our existing Ruth's Chris franchise partner in Asia for the development of 6 Capital Grill locations," he added. Related: Popular BBQ chain closes almost all locations, no bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
2 days ago
- Business
- Yahoo
DRI Q2 Deep Dive: Value-Focused Promotions and Delivery Drive Same-Store Sales Growth
Restaurant company Darden (NYSE:DRI) met Wall Street's revenue expectations in Q2 CY2025, with sales up 10.6% year on year to $3.27 billion. Its GAAP profit of $2.58 per share was 12.1% below analysts' consensus estimates. Is now the time to buy DRI? Find out in our full research report (it's free). Revenue: $3.27 billion vs analyst estimates of $3.26 billion (10.6% year-on-year growth, in line) EPS (GAAP): $2.58 vs analyst expectations of $2.94 (12.1% miss) Adjusted EBITDA: $517.8 million vs analyst estimates of $581 million (15.8% margin, 10.9% miss) EPS (GAAP) guidance for the upcoming financial year 2026 is $10.60 at the midpoint, missing analyst estimates by 1.2% Operating Margin: 11.7%, down from 13.4% in the same quarter last year Locations: 2,159 at quarter end, up from 2,031 in the same quarter last year Same-Store Sales rose 4.6% year on year (0% in the same quarter last year) Market Capitalization: $26.07 billion Darden's second quarter saw a positive market reaction as the company delivered robust same-store sales growth and expanded its restaurant footprint. Management credited the success to value-oriented promotions at Olive Garden, such as the return of the "buy one take one" offer and expanded delivery options, which resonated with guests seeking affordability and convenience. CEO Ricardo Cardenas noted that, 'consumers are figuring out that casual dining is a great value,' highlighting a broader shift in consumer behavior away from fast food and toward full-service restaurants. The company also pointed to operational execution and targeted marketing efforts as contributors to guest satisfaction and traffic gains across its largest brands. Looking ahead, Darden's outlook is shaped by a strategy of disciplined pricing, continued investment in affordability, and measured expansion. Management emphasized intentions to keep menu price increases below inflation and to reinvest incremental sales into enhancing guest value and operational efficiency. CFO Rajesh Vennam stated, 'We are going to focus a little bit more on top line growth and on just grabbing margin,' signaling a shift toward driving sales through new menu items, delivery channels, and marketing, even if it results in flatter margins. The company is also monitoring macroeconomic uncertainty and evolving consumer preferences, particularly as it ramps up new restaurant openings and pursues international franchising agreements. Management identified value-driven promotions, delivery expansion, and operational discipline as the main drivers of quarterly performance, while also outlining portfolio changes and leadership transitions to position the company for future growth. Olive Garden promotions boost traffic: The return of the "buy one take one" offer at Olive Garden and a new free delivery campaign led to higher guest volumes and nearly doubled weekly delivery orders in the final weeks of the quarter. Management reported that these initiatives attracted both new and lapsed customers, with many delivery users being younger and higher income than typical dine-in guests. Delivery channel expansion: The rollout of Uber Direct delivery at Olive Garden and Cheddar's Scratch Kitchen contributed incremental sales, with delivery now accounting for an increasing share of transactions. Management indicated that delivery customers tend to have higher frequency and larger checks, and the incremental sales from delivery are not eroding restaurant margins due to careful deal structuring with Uber. LongHorn Steakhouse quality investments: LongHorn continued to outperform the industry by focusing on quality, simplicity, and training, including ongoing investments in product quality and service. Management highlighted that investments made during the pandemic, such as increasing steak sizes and limiting price increases, continue to support strong performance and guest satisfaction. Portfolio streamlining and international expansion: Darden is exploring strategic alternatives for its Bahama Breeze brand, including a potential sale, while expanding Olive Garden's international reach through a franchising agreement in Canada and new development deals in India and Spain. These moves reflect a focus on brands with the highest growth potential and localized market expertise. Leadership transitions and succession planning: The company announced several C-level changes, including the retirement of Olive Garden President Dan Kiernan and a series of internal promotions to support the next phase of growth. Management stressed the importance of a deep leadership bench and careful succession planning, especially as it integrates acquisitions and expands its brand portfolio. Management expects disciplined pricing, targeted reinvestment, and expanded delivery to shape results in the upcoming quarters, while macroeconomic uncertainty and consumer preferences remain key variables. Disciplined pricing and affordability: Darden plans to keep price increases below food and labor inflation, prioritizing affordability to maintain value leadership in casual dining. Management indicated that future investments may include additional lower-priced menu items and selective promotional activity, especially at Olive Garden, to attract cost-conscious customers. Delivery growth and digital engagement: The success of Uber Direct at Olive Garden and Cheddar's has prompted ongoing evaluation of delivery expansion across its other brands. Management is cautious but optimistic, noting that delivery can drive incremental sales from younger, higher-income, and lapsed customers, while maintaining profit margins. Strategic reinvestment and operational improvements: Extra profits from higher-than-expected sales will be reinvested in operational efficiency, menu innovation, and marketing. The company aims to balance growth and margin stability, recognizing that investments in speed of service and enhanced guest experience are necessary to sustain long-term competitiveness. In the coming quarters, our analysts will monitor (1) the trajectory of delivery sales at Olive Garden and Cheddar's and the potential rollout to additional brands, (2) the effectiveness of new value-focused menu items and promotional campaigns in sustaining traffic gains, and (3) progress on international franchising agreements, particularly in Canada, India, and Spain. Execution on leadership transitions and operational improvements will also be key indicators of management's ability to drive sustainable growth. Darden currently trades at $227.34, up from $222.78 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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