Worried about the heat, Darden to keep analysts out of the kitchen


Darden Restaurants (DRI) has received negative press in the past for shutting out analysts who are critical of management, and those calls likely will intensify after the company says it is canceling its analyst and investor meeting scheduled for later this month.

"When there are problems and they don't want to take difficult questions, they shut down management access," Hedgeye analyst Howard Penney says.

Activist investor Starboard Value, which owns 5.5% of DRI shares, and Barrington Capital, with a ~2% stake, have said DRI's plan to spin off Red Lobster should be delayed and put to a shareholder vote.

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Comments (3)
  • Jon Banquer
    , contributor
    Comments (111) | Send Message
     
    What a mess management is making of Olive Garden. This is a company that clearly needs a new CEO because Clarance Otis is running the company into the ground.
    5 Mar 2014, 07:53 PM Reply Like
  • CMPMD
    , contributor
    Comments (406) | Send Message
     
    This is sad to see.

     

    Although everyone realizes that the casual dining sector has been under pressure since the Great Recession, under the circumstances, a reasonable conclusion is that what Starboard and Barrington have been saying about Darden's management must be at least partially true.
    6 Mar 2014, 10:13 AM Reply Like
  • jumpnjoey77
    , contributor
    Comments (1221) | Send Message
     
    I think they are doing a good job sprucing up the menu and updating locations. The public has been trained if it is not a 2 for 1 to wait.
    6 Mar 2014, 10:42 AM Reply Like
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