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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 PMDarden 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
Darden Restaurants Inc owns and operates dining restaurants. Some of its trade names are Red Lobster, Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, Eddie V's Prime Seafood, Wildfish Seafood Grille and Yard House.
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