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  "documentTitle": "Darden Restaurants, Inc. (DRI)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2014-03-31 00:00:00",
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  "notes": "Uses a simple table to highlight the valuation gap between REITs and Darden.",
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      "kind": "callout",
      "text": "We believe management is arguing the wrong point.",
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      "text": "However, there may be as much as a ten multiple turn difference between what those earnings are worth inside of Darden or New Red Lobster and what they are worth to a real estate buyer or spun out as a REIT.",
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      "text": "Management has argued that Darden’s real estate would sell for, or trade at, a discount to the multiples of triple-net-lease peers.",
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      "text": "Even at a substantial discount to typical REIT multiples, a real estate separation could still create meaningful value for shareholders.",
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      "text": "The question is not where Darden’s real estate would trade relative to REITs, but where it would trade relative to where Darden currently trades or where New Red Lobster would be expected to trade.",
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      "text": "LTM EV/EBITDA: 18.2x",
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      "text": "Even if management is right that Darden’s real estate would sell for, or trade at, a discount to leading triple-net REITs, this does not imply that a real estate separation would not create value for shareholders.",
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      "text": "LTM EV/EBITDA: REIT average 18.2x, Current Darden 9.4x, Potential New Red Lobster ??",
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      "text": "Management has not adequately addressed Darden’s real estate value (cont’d)",
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