- Shares of Darden Restaurants (DRI) are putting in a volatile premarket session as investors digest lackluster same-restaurant sales, weak guidance, and the planned separation of Red Lobster from the mother ship.
- The quick analyst reaction to the move by the company to shed Red Lobster in order to "enhance" shareholder value leans to the skeptical side: 1) The action comes late and could only draw mild P-E interest. 2) The new DRI will be 60% Olive Garden - a chain which still needs a lot of work to be done on it to reverse momentum. The question is how? Capex spending is being cut with management tied to a healthy dividend payout.
Reaction to Darden Restaurants' busy day
Dec 19 2013, 09:21 ET