{
  "docId": "019dd923-622b-71dc-a6d9-b7733990b4fe",
  "docSlug": "9c639b8b1898",
  "documentTitle": "Darden Restaurants, Inc. (DRI)",
  "authorId": "03_Starboard_Value",
  "authorName": "Starboard Value",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2014-03-31 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 19,
  "pageCount": 108,
  "prevPage": 18,
  "nextPage": 20,
  "slideType": "peer_benchmark",
  "function": "compare_peers",
  "density": "overcrowded",
  "nDataPoints": 20,
  "notes": "The slide uses a 'fully-leased' adjustment to normalize for real estate ownership, arguing that DRI's low margins are due to poor operations rather than real estate strategy.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "bullet_list",
    "bar_chart_vertical",
    "callout_box",
    "kpi_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6d9-b7733990b4fe/19",
  "deckHref": "/decks/019dd923-622b-71dc-a6d9-b7733990b4fe",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-b7733990b4fe.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-b7733990b4fe#slide-19",
  "components": [
    {
      "bbox": {
        "h": 0.12,
        "w": 0.44,
        "x": 0.52,
        "y": 0.44
      },
      "kind": "callout",
      "text": "Despite high AUVs and industry leading revenue, Darden’s operating performance is significantly worse than peers",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4d63d200-c2b9-477f-b2eb-b389ed882f29",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "Despite high AUVs and industry leading revenue, Darden's operating performance is significantly worse than peers",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-203e-77ad-a6a5-9dc8471599fd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.92,
        "x": 0.04,
        "y": 0.42
      },
      "kind": "chart",
      "text": "Estimated LTM EBITDA margins on a fully-leased basis",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bae97ba6-a165-4a3f-a621-14bf662db346",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.92,
        "x": 0.04,
        "y": 0.24
      },
      "kind": "list",
      "text": "We believe fully-leased EBITDA is the best metric by which to judge Darden’s operating performance, as opposed to the earnings generated through site selection and capital investment in real estate.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6309dee5-71c1-4cf5-bbfd-605978ed4dc0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "fully-leased EBITDA margin: 7.4%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-203e-77ad-a6a5-a210f1795528",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.92,
        "x": 0.04,
        "y": 0.14
      },
      "kind": "paragraph",
      "text": "Adjusting for real estate ownership, Darden’s margins are significantly below peers, despite the fact that it has an enormous scale advantage and is led by Olive Garden, which should be an extremely profitable concept given its high AUVs and pasta focus.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "39a95940-cb1a-4b6e-95f9-f1b6fd986fca",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.5,
        "x": 0.04,
        "y": 0.89
      },
      "kind": "source-note",
      "text": "Source: Company filings, Capital IQ, company presentations and Green Street Advisors.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0e3fb0b3-4c9b-43f1-b7bf-77b54e289958",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.92,
        "x": 0.04,
        "y": 0.82
      },
      "kind": "table",
      "text": "2013 AUVs and LTM Revenue data for peers and DRI",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "36498410-e13e-44fb-b621-b2359bc3d3f7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.92,
        "x": 0.04,
        "y": 0.04
      },
      "kind": "title",
      "text": "Management and the Board have not earned the right to rush this critical and irreversible decision (cont'd)",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "785a16ec-1db4-4d6e-af5c-5b2be9ad4096",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "comparison_frame",
      "slug": null,
      "matchId": "a6efa663-0c18-4bc7-980f-d79e46f5e78a",
      "evidence": "Comparing DRI margins against a peer group to highlight underperformance.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 25,
      "from": 7,
      "beatId": "def716ce-8782-4386-a34a-8053d6ddecbb",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The document highlights contradictions in management's rationale for the separation, including timing and valuation concerns.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [
    {
      "to": 25,
      "from": 7,
      "name": "Logic Chain",
      "slug": "01-logic-chain",
      "bestFor": "Skeptical audiences, controversial recommendations, rigorous analysis",
      "matchId": "697f8246-ade1-4a6f-ba12-b3f73423ab43",
      "evidence": "The document presents a series of logical arguments to challenge management's decision.",
      "position": 0,
      "objective": "To question management's logic for the Red Lobster separation",
      "structure": "Premise 1 (Accepted truth) -> Premise 2 (Observed fact) -> Therefore... (Inevitable conclusion)",
      "confidence": 0.7,
      "description": "Build an airtight chain of logic where each premise leads inevitably to the conclusion"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}