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  "documentTitle": "Darden Restaurants, Inc. (DRI)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2014-09-11 00:00:00",
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  "notes": "Uses peer benchmarking (Brinker, TGI Friday's) to expose management's lack of focus.",
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      "text": "Proved successful for Brinker",
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      "text": "International franchising is an opportunity for long-term, highly profitable growth with negative capital investment",
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      "text": "There is strong demand for American casual dining brands in South America, Asia, the Middle East, and parts of Europe at compelling store-level economic performance. Although Darden has signed some token agreements with international franchisees, no significant store development has occurred, indicating a lack of focus and poor execution by Darden management. Olive Garden's pasta focus helps to minimize a number of challenges that more protein-centric concepts have had adapting their model and serving consistent food in certain regions",
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      "text": "We believe that Darden's brands could ultimately support more than 300 units internationally, including approximately 140 Olive Gardens, 90 LongHorn's, and 75 from SRG's brands. This would translate into total franchise fees of approximately $50 million (a one-time capital infusion into Darden) and ongoing annual royalty income of more than $60 million. Although such a rollout would be staged gradually over 5-7 years, it will provide an ongoing source of revenue growth, margin expansion, and increasing returns on capital over the long term.",
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      "text": "TGI Friday's, Brinker, Bloomin', and DineEquity have all successfully expanded internationally, driven primarily by franchising. International markets are not close to saturated, with even Friday's, already the largest international player, seeing room to build more than 200 additional units overseas.",
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