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  "documentTitle": "Darden Restaurants, Inc. (DRI)",
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  "presentationDate": "2014-03-31 00:00:00",
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      "kind": "callout",
      "text": "How can the Board stubbornly move forward with this process when the market appears to have serious concerns?",
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      "text": "On the day Darden’s strategic plan was announced, the stock closed down 4% to $51... The takeaway from stock action and, in our opinion, sentiment since 12/20/13 is the stock rallies when there is movement toward replacing management and sells off when management publicly digs their heels in.",
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      "kind": "quote",
      "text": "We find it odd management believes value can be created by separating the business into two mature companies... Management did not elaborate on this value-creation opportunity... we believe monetizing the real estate Red Lobster owns may be impactful for shareholders.",
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      "text": "Moving forward with Red Lobster sale or spin. Unless the separation helps drive a significant improvement in operating results, we don't envision this being very accretive to valuation. Mgmt has previously stated standalone RL will do mid- to high single-digit EBIT growth, a target that appears aggressive.",
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      "text": "“We find it odd management believes value can be created by separating the business into two mature companies... We think one of the most interesting statements in the Darden release was the following one: ‘A spin-off will also allow us to target our efforts and investments on value creation opportunities that may be material to a stand-alone Red Lobster but not to Darden overall.’ Management did not elaborate on this value-creation opportunity during the conference call, but we believe monetizing the real estate Red Lobster owns may be impactful for shareholders.” — KeyBanc, December 20, 2013; “On the day Darden’s strategic plan was announced, the stock closed down 4% to $51. This didn’t exactly strike us as a vote of confidence in management’s plan to create value. Two days later, Starboard Value announced a 5.5% position in the company and the stock rallied 6%. For the most part, the stock has traded sideways since then, until rallying 3% on the news that Starboard retained former Olive Garden president Brad Blum to serve as an advisor in its battle against Darden. The takeaway from stock action and, in our opinion, sentiment since 12/20/13 is the stock rallies when there is movement toward replacing management and sells off when management publicly digs their heels in.” — Hedgeye, February 24, 2014; “Moving forward with Red Lobster sale or spin. Unless the separation helps drive a significant improvement in operating results, we don’t envision this being very accretive to valuation. Mgmt has previously stated standalone RL will do mid-to high single-digit EBIT growth, a target that appears aggressive.” — Oppenheimer, March 3, 2014",
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      "text": "Source: Wall Street equity research.",
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      "text": "Wall street research analysts have voiced their concern and skepticism regarding a Red Lobster separation",
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