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  "documentTitle": "Darden Restaurants, Inc. (DRI)",
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      "text": "DineEquity Value Creation Through Franchising – 352% TSR",
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      "text": "For older stores that need capital investment, refranchising can be an attractive alternative to investing in remodels. Darden believes a substantial portion of its store base is in need of remodels - at $500-600k per store! This minimizes Darden's cash flow requirements.",
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      "text": "Though we acknowledge that DIN trades at a premium valuation relative to its leverage, we believe this is warranted due to the stable characteristics of its franchise model.",
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      "text": "\"Though we acknowledge that DIN trades at a premium valuation relative to its leverage, we believe this is warranted due to the stable characteristics of its franchise model. That model provides a stable stream of royalty revenue that is generally immune to negative operating leverage and fluctuations in commodity and labor costs. Furthermore, the model enables low capital expenditures, thereby maximizing free cash flow.\" — Goldman Sachs, May 11, 2011; \"The company has evolved its business into a more profitable franchise-centric model while bolstering its capital structure and balance sheet with significant debt reductions.\" — B Riley, October 12, 2011",
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