Seeking Alpha

Report: Starboard Value to make play for Darden board

  • Starboard Value plans to launch a fight to take over the board of Darden Restaurants (DRI), according to the Wall Street Journal.
  • The hedge fund wasn't expected to stay quiet after Darden decided to sell Red Lobster in a move Starboard thinks destroys shareholder value.
  • Darden is trying to push the Red Lobster sale through without a shareholder vote.
Comments (4)
  • Kanka
    , contributor
    Comment (1) | Send Message
     
    Good for Starboard!!!! The management and board at Darden have gotten too big of egos. They think they are untouchable and do no wrong. They have consistently filled their pockets through the years and have lost focus on what started the whole company. Red Lobster is their flagship, and they are shitting on the concept that made Darden what it is today. What comes around goes around. On the other hand, maybe Red Lobster is better off without Darden, maybe they will get a board that actually goes into the restaurants and can see the changes that need to be made to get guest traffic up rather than from their air-conditioned office sipping bourbons.
    22 May, 12:17 AM Reply Like
  • LonW
    , contributor
    Comments (144) | Send Message
     
    Red Lobster was the flagship, but that ship has sailed. However, I do not agree with the fire sale of the company. The Red Lobster near me has been a good performer, there are many stores that should have been remodeled, closed, or sold. You know what The definition of insanity is?
    Insanity: Doing the same thing over and over again and expecting different results.
    Albert Einstein
    22 May, 09:21 AM Reply Like
  • CMPMD
    , contributor
    Comments (94) | Send Message
     
    Red Lobster was previously Darden's flagship restaurant chain, but Olive Garden has been for some time now.
    22 May, 09:43 AM Reply Like
  • LonW
    , contributor
    Comments (144) | Send Message
     
    Olive Garden has also been losing money. Same store sales are down.
    22 May, 10:37 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|