{ "docId": "019dd923-622b-71dc-a6d9-c007c91e862b", "docSlug": "28a425ed69eb", "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": "2014-09-11 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 291, "pageCount": 294, "prevPage": 290, "nextPage": 292, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 3, "notes": "The slide uses a series of pull-quotes from various financial institutions to build a narrative of market disapproval.", "elementsJson": [ "headline_text", "callout_box" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6d9-c007c91e862b/291", "deckHref": "/decks/019dd923-622b-71dc-a6d9-c007c91e862b", "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-c007c91e862b.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-c007c91e862b#slide-291", "components": [ { "bbox": null, "kind": "callout", "text": "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.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-f5cf-7048-87f6-00a99b96f0cf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.46, "x": 0.04, "y": 0.6 }, "kind": "quote", "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. - Oppenheimer, March 3, 2014", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2e0dcc02-0404-4703-8490-98fafa0918a8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.46, "x": 0.04, "y": 0.32 }, "kind": "quote", "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... - Hedgeye, February 24, 2014", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "86be4801-5ef3-4c6b-a7ad-41f4bc06b010", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.46, "x": 0.52, "y": 0.18 }, "kind": "quote", "text": "...But we continue to believe [management's] plan doesn't address RL problems for investors... It is still unclear how a spin actually improves core guest targeting capabilities... - UBS, March 3, 2014", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9b776baa-5aa9-4ea4-b7c7-d451a6e0ddb3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.46, "x": 0.52, "y": 0.67 }, "kind": "quote", "text": "Despite Opposition, Management is Moving Forward in Divesting Red Lobster: Overall, we believe the Street is disappointed by the divestiture of Red Lobster on its own. - Sterne Agee, March 21, 2014", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bada1c26-797f-464d-99e0-3fad81c1e353", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.46, "x": 0.04, "y": 0.18 }, "kind": "quote", "text": "We find it odd management believes value can be created by separating the business into two mature companies. - KeyBanc, December 20, 2013", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c4375c76-f75e-44fb-a77d-1aaaf7ea8198", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.46, "x": 0.52, "y": 0.46 }, "kind": "quote", "text": "We believe Red Lobster has a valuable asset base... We fear management's current plan to spinoff Red Lobster is reactionary and lacking integrity. - Hedgeye, March 12, 2014", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cf0089be-66e4-45de-b388-a3a7416bd215", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.46, "x": 0.04, "y": 0.75 }, "kind": "quote", "text": "It remains unclear to us why the combined valuation of the separate companies would exceed current DRI valuation. - Bank of America, March 3, 2014", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fa6403d3-647d-49f4-941c-03182165e09f", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"We find it odd management believes value can be created by separating the business into two mature companies.\" — KeyBanc, December 20, 2013; \"...But we continue to believe [management's] plan doesn't address RL problems for investors... We believe the most favorable outcome for investors under the current plan is a sale of RL, but short of that we see risk to the downside if investors inherit RL shares.\" — UBS, March 3, 2014; \"We believe Red Lobster has a valuable asset base that makes Darden's overall real estate portfolio materially more attractive than it would be without it. We fear management's current plan to spinoff Red Lobster is reactionary and lacking integrity.\" — Hedgeye, March 12, 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.\" — Oppenheimer, March 3, 2014; \"It remains unclear to us why the combined valuation of the separate companies would exceed current DRI valuation.\" — Bank of America, March 3, 2014; \"Despite Opposition, Management is Moving Forward in Divesting Red Lobster: Overall, we believe the Street is disappointed by the divestiture of Red Lobster on its own.\" — Sterne Agee, March 21, 2014", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-f5cf-7048-87f6-043949661d44", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.92, "x": 0.04, "y": 0.04 }, "kind": "title", "text": "The investment community expressed serious concerns after the announcement of the Red Lobster Separation...", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b585e412-798e-4bd9-b00a-5264c0cc6331", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "authority-citation", "slug": null, "matchId": "4c78c81a-78b0-4bfd-bbb9-149f210cde5a", "evidence": "Uses quotes from major financial institutions to validate the activist's position.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }