Sep. 12, 2014, 1:44 PM
- Starboard Value's 294-page presentation on how to transform Darden Restaurants (DRI -1.7%) has a sharp focus on the need for change at the Olive Garden chain.
- The hedge fund calls for a complete OG menu revamp to stick to authentic Italian dishes.
- The quality of staples (soup, salad, and breadsticks) needs to be improved and the introduction of more healthier (gluten-free, low-fat) options should be initiated.
- A value proposition should be implemented at OG, instead of selling "massive quantities of barely edible fried items."
- Increase the mix of alcohol to total sales by pushing wine. Currently, alcohol only accounts for 8% of revenue at Olive Garden vs. 15% at Macaroni Grill.
- Tighter management of food inefficiencies to lower costs. Can the "unlimited" portions.
- Full Starboard Value thesis on transforming Darden (.pdf)
Sep. 12, 2014, 8:06 AM
- Darden Restaurants (NYSE:DRI) responds to the transformation plan offered up by Starboard Value this morning by leaning on its recent uptick in traffic trends.
- The company also maintains some of the Starboard strategies are already being implemented.
- Naturally, Darden wants shareholders to vote for its board nominees.
- Darden's Annual Shareholder Meeting is scheduled for October 10.
- DRI +2.8% premarket
Sep. 12, 2014, 7:59 AM
- Starboard Value releases its transformation plan for Darden Restaurants (NYSE:DRI).
- The firm wants to see a separation of the restaurant operator's concepts into more logical groupings, increase international franchising, and has a road map for enhancing the value of Darden's real estate assets.
- The Starboard plan will add $15-$26 per DRI share in value, according to the presentation.
- As detailed before, Starboard wants majority control of the board.
- DRI +3.5% premarket
Sep. 12, 2014, 7:49 AM
- Darden Restaurants (NYSE:DRI) declares $0.55/share quarterly dividend, in line with previous.
- Forward yield 4.56%
- Payable Nov. 3; for shareholders of record Oct. 10; ex-div Oct. 8.
Sep. 12, 2014, 7:10 AM
- Darden Restaurants (NYSE:DRI) reports a -1.3% dip in same-restaurant sales at Olive Garden in FQ1.
- Longhorn Steakhouse ran a +2.8% comp, while the Specialty Restaurant Group was at 2.1%.
- Revenue by brand: Olive Garden -0.5% to $912.5M; Longhorn Steakhouse +9.7% to $356.9M; Specialty Group +14.5% to $322.3M.
Sep. 12, 2014, 7:03 AM
- Darden Restaurants (NYSE:DRI): FQ1 EPS of $0.32 in-line.
- Revenue of $1.6B (+4.6% Y/Y) beats by $10M.
Sep. 11, 2014, 5:30 PM
Sep. 8, 2014, 9:19 AM
- Olive Garden (NYSE:DRI) has caught the eye of restaurant industry analysts with its latest promotion.
- The restaurant chain is selling 1,000 $100 "Pasta Passes" which gives holders unlimited pasta, salad and Coke drinks for seven weeks.
- The development is the latest "all-you-can eat" deal which hints that the soft pricing trends for casual dining chains seen in Q2 has slid well into Q3.
Sep. 2, 2014, 9:29 AM
- Darden Restaurants (NYSE:DRI) updates profit guidance after sizing up its traffic and sales trends for June through August.
- The restaurant chain operator sees FY15 EPS of $2.22-$2.30 vs. $2.23 consensus.
- Darden picked up some momentum in August as same-restaurant sales growth improved to 0.8% for the Olive Garden chain from -4.2% in July and to 3.2% for Longhorn Steakhouse from 1.5% the previous month.
- DRI -1.6% premarket
Aug. 28, 2014, 3:34 PM
- Starboard Value files proxy paperwork with the SEC indicating it has a dozen nominees for the board at Darden Restaurants (DRI -0.3%).
- The hedge fund also takes Darden to task for delaying its shareholder meeting until October 10.
- Starboard says it will disclose its Darden turnaround plan shortly and tips that the plan won't disrupt the company's annual dividend or investment grade rating.
- SEC Schedule 14A
Aug. 28, 2014, 11:00 AM
- Darden Restaurants (DRI -0.3%) says it will delay its annual meeting in order to give shareholders more time to mull over soon-to-be-released proxy materials.
- The meeting has been pushed back to October 10 from September 30.
Aug. 25, 2014, 1:54 PM
- Larger restaurant chain operators might be looking to buy their way into growth to follow the lead of Burger King Worldwide, speculates MarketWatch.com
- A filtered ranking of the top 10 North American restaurant chains with the best growth of sales per share ended up with Chipotle (CMG) and Buffalo Wild Wings (BWLD +2.1%) at the top of the list.
- Sorting the list by lowest forward P-E ratio leaves Texas Roadhouse (TXRH +1.9%), Cheesecake Factory (CAKE +1.4%), and (perhaps a surprise) Yum Brands (YUM +0.9%) looking like potential M&A targets.
- Other restaurant stocks: CBRL, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BDL, NATH, LUB, BKW, CHUY, BLMN, PZZA, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN.
Aug. 8, 2014, 9:03 AM
- Darden Restaurants (NYSE:DRI) announces the tender results for its cash offer on outstanding debt.
- The percentage of tendered debt for various issues ranged from 46% to 86%.
- Darden is using some of the Red Lobster proceeds to pay off debt.
Aug. 4, 2014, 8:46 AM
- Darden Restaurants (NYSE:DRI) claims Starboard Value has made misleading statements in regard to the sale of Red Lobster.
- The company says the $2.1B deal price reps a premium multiple compared to other restaurant deals.
- A final shot from Darden warns that if Starboard is successful in replacing the entire Darden board, investors could see the $2.20 annual dividend slashed or eliminated.
Jul. 31, 2014, 11:43 AM
- Darden Restaurants (DRI +0.6%) announces an accelerated buyback of $500M worth of shares.
- The company will use some of the Red Lobster proceeds for the share purchases.
Jul. 31, 2014, 10:02 AM
- There could be sweeping changes at Darden Restaurants (DRI +0.7%) if Starboard gets majority control of the board, says Hedgeye's Howard Penney.
- Boardroom math: Starboard wants all 12 seats, while Darden has effectively given up three with its recent corporate changes. If Starboard lands 7, Penney thinks the Darden transformation will begin in earnest.
Darden Restaurants, Inc. engages in the provision of restaurant services. The company's restaurant brands include Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V's and Yard House. The Olive Garden brand is a full service dining Italian restaurant... More
Country: United States
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