May 16, 2014, 8:10 AM
- Darden Restaurants (DRI) will sell Red Lobster to Golden Gate Properties for $2.1B.
- The company plans to use $1B of the net proceeds to pay off debt and funnel $500M-$600M toward share buybacks.
- The deal is expected to close during FQ1.
- DRI +0.2% premarket
Dec. 23, 2013, 2:11 AM
- Activist investor Starboard Value has reportedly bought a 5.6% holding in Darden Restaurants (DRI) just days after the latter said it intends to spin off its Red Lobster operations following pressure to restructure from another shareholder, Barington Capital Group.
- However, Darden's plan is not enough for Starboard, which wants the restaurant operator to create a real estate investment trust (REIT) for its property holdings, and combine its Red Lobster, Olive Garden and LongHorn Steakhouse chains into one company, and its faster-growing businesses into another.
- Starboard hasn't been in contact with Barington, whose wish list is similar but not identical to Starboard's, although it has spoken with other disgruntled shareholders.
Jul. 12, 2012, 5:25 PM
Darden Restaurants (DRI) -1.4% AH after announcing the acquisition of restaurant chain Yard House for $585M in cash (after accounting for $30M in tax benefits). Darden predicts Yard House, which owns 39 restaurants in 13 states, will dilute its FY13 (ends May '13) EPS by $0.03-$0.05, and be accretive afterwards. Darden now plans only $50M worth of FY13 stock buybacks, down from a prior $200M-$250M. (PR)| Jul. 12, 2012, 5:25 PM | 2 Comments