Mar. 27, 2014, 3:45 AM
- CEO salaries at companies that generate over $8B in revenues rose 4.1% to a median $9.8M in 2013 as shareholder activism kept a lid on pay, a WSJ-commissioned survey shows.
- While the increase was slightly greater than in 2012, it was well well under the median 25% shareholder return for the companies looked at.
- Clarence Otis of Darden Restaurants (DRI), which is a focus of investor activism, saw his pay drop 24% even as returns increased 4%, and while the compensation of Cisco's (CSCO) John Chambers jumped 49%, returns soared 65%. GameStop's (GME) Paul Raines enjoyed a 92% boost in his salary even though returns rose just 5.4%.
- Other relevant tickers: BBBY, ORCL, NKE, VIAB
Mar. 26, 2014, 12:08 PM
Mar. 21, 2014, 7:31 AM
- The company estimates EPS was hit by about $0.13, with $0.07 of that from severe winter and $0.06 related to the implementation of its new strategic plan.
- Winter weather? Same-Restaurant Traffic at Olive Garden -4.6% in January, -4.9% in February. For Red Lobster, -18.7% and -11.9%, for LongHorn Steakhouse +0.7% and -0.4%.
- Full year fiscal 2014 guidance of a 15-20% decline in EPS, excluding any costs from the new strategic plan.
- Press release, FQ3 results
- DRI -0.2%
Mar. 21, 2014, 7:09 AM
Mar. 21, 2014, 7:01 AM
Mar. 21, 2014, 12:05 AM
Mar. 20, 2014, 5:30 PM
Mar. 14, 2014, 9:32 AM| Mar. 14, 2014, 9:32 AM | Comment!
Mar. 11, 2014, 11:24 AM
Mar. 5, 2014, 5:56 PM
- 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.
Mar. 5, 2014, 9:06 AM
- A recent poll by the Wall Street Journal and NBC indicates 63% of American support raising the minimum wage.
- Though the Republicans are expected to challenge anything brought to the floor of the House, there's a growing consensus in DC that some minimum wage legislation will eventually pass.
- Democrats argue that the current minimum wage level of $7.25 per hour is low by historical standards when adjusted for inflation.
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Mar. 3, 2014, 7:57 AM
- Darden Restaurants (DRI) expects FQ3 EPS of $0.82 as the company's bottom line takes a hit from costs associated with a fresh strategic plan and severe winter weather in the U.S.
- Analysts had projected EPS would come in at $0.93 for the quarter.
- For the quarter, blended same-restaurant sales are forecast to be 0.7% lower than a year ago.
- Red Lobster continues to see abysmal traffic patterns with double-digit declines recorded in December, January, and February.
Feb. 26, 2014, 2:44 PM
- Three Senate Democrats have broken away from Majority Leader Harry Reid's $10.10/hour line in the sand on minimum wage legislation.
- Mary Landrieu of Louisiana, Mark Pryor of Arkansas, and Mark Warner of Virginia have all tipped off that they think there could be some room to negotiate over the amount of an increase over the current federal minimum wage of $7.25/hour. The GOP likes the status quo, but is viewed as likely to give some ground in an election year.
- Federal minimum wage legislation could create higher costs in the retail and restaurants sectors as companies adjust to the new higher floor.
- Last week, Gap made a preemptive move to raise its own hourly wage in a development that stirred the pot a little bit.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, CEC, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, AEO, ANF, ARO, BBBY, BJ, CHS, COST, DG, DLTR, GPS, HD, JCP, JWN, KR, KSS, LOW, LB, NDN, ODP, PIR, PLCE, RSH, SPLS, SWY, TGT, TJX, URBN, WMT.
Feb. 24, 2014, 6:52 AM
- Starboard Value wants to have shareholders of Darden Restaurants (DRI) vote at a special meeting on the company's plan to spin off Red Lobster.
- The hedge fund needs to win support of a majority of the shareholders in the next 60 days to force Darden to schedule the meeting.
- Starboard, which owns a 5.5% stake in the restaurant operator, would like to see Darden spin off more chains than just the one.
Feb. 20, 2014, 1:14 PM
- Starboard Value hires the former president of Olive Garden, Bradley Blum, as an adviser in a move clearly aimed at Darden Restaurants (DRI +2.8%).
- The hedge fund owns 5.5% of Darden and has been pressing the company hard for changes.
- It seems a decent bet that Blum will end up being nominated by Starboard for the Darden board.
- SEC Form 13D
Feb. 18, 2014, 7:45 AM
DRI vs. ETF Alternatives
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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