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  "docSlug": "9c639b8b1898",
  "documentTitle": "Darden Restaurants, Inc. (DRI)",
  "authorId": "03_Starboard_Value",
  "authorName": "Starboard Value",
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  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2014-03-31 00:00:00",
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  "pageNumber": 12,
  "pageCount": 108,
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  "notes": "The slide uses a break-even analysis to argue that a spin-off is value-destructive unless the remaining Darden entity sees significant multiple expansion.",
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      "kind": "callout",
      "text": "If New Darden's multiple does not expand following a spin-off, we believe more than $800 million in shareholder value could be lost.",
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      "kind": "callout",
      "text": "Even if New Darden's multiple expands compared to current Darden, it will not outweigh the value destroyed through trapping the Red Lobster real estate.",
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      "kind": "callout",
      "text": "If New Darden’s multiple does not expand following a spin-off, we believe more than $800 million in shareholder value could be lost.",
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      "text": "Darden currently trades at approximately 9.5x LTM EBITDA; it is likely Red Lobster, as a standalone public company, will trade at a substantial discount to where Darden and the rest of its casual dining peers trade.\nFor example, if New Red Lobster traded at 6.5x EBITDA, New Darden would need to trade at approximately 10.4x EBITDA just for shareholders to break even.",
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      "text": "EV / EBITDA: $819",
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      "kind": "paragraph",
      "text": "Should New Red Lobster trade substantially below Darden's current multiple, Darden post separation (\"New Darden\") would need to trade at a significantly higher multiple than where it currently trades just to get the combined stock prices back to Darden's current price.",
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      "kind": "source-note",
      "text": "Source: Bloomberg, Capital IQ, Company filings",
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      "kind": "table",
      "text": "Potential Value Destruction in a Red Lobster Spin-off table",
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      "kind": "title",
      "text": "Valuation concerns: New Red Lobster is likely to trade at a substantial discount to casual dining peers (cont'd)",
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