{
  "docId": "019dd923-622c-750b-8b9c-ccd1d6676fd3",
  "docSlug": "ccf0af92c506",
  "documentTitle": "Darden Restaurants, Inc. (DRI)",
  "authorId": "03_Starboard_Value",
  "authorName": "Darden",
  "documentKindSlug": "regulatory-filing",
  "documentKindLabel": "Regulatory filing",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2014-09-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 14,
  "pageCount": 18,
  "prevPage": 13,
  "nextPage": 15,
  "slideType": "valuation_table",
  "function": "show_valuation_bridge",
  "density": "overcrowded",
  "nDataPoints": 24,
  "notes": "The slide uses a combination of a growth profile chart and a valuation bridge table to argue against a corporate separation.",
  "elementsJson": [
    "headline_text",
    "subtitle_text",
    "bar_chart_horizontal",
    "data_table",
    "callout_box",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9c-ccd1d6676fd3/14",
  "deckHref": "/decks/019dd923-622c-750b-8b9c-ccd1d6676fd3",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9c-ccd1d6676fd3.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9c-ccd1d6676fd3#slide-14",
  "components": [
    {
      "bbox": {
        "h": 0.15,
        "w": 0.25,
        "x": 0.7,
        "y": 0.3
      },
      "kind": "callout",
      "text": "A re-rating in Darden's trading multiple is possible given the significant change in growth profile post a potential Specialty Restaurants separation",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0c01dc4f-18f2-454f-a966-fc284be46604",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "Transaction costs and dis-synergies could result in potential value destruction of over $500 million",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b32a-da95170603dc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.4,
        "x": 0.2,
        "y": 0.28
      },
      "kind": "chart",
      "text": "Darden Growth Profile",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "53ecb36c-cc76-4f17-a2db-be721272ff7d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.25,
        "x": 0.7,
        "y": 0.48
      },
      "kind": "list",
      "text": "1. Minimal value creation potential from Specialty Restaurants given relatively small size compared to remaining Darden. 2. ~$500 million of potential value destruction. 3. ~$150 million of potential value destruction from dis-synergies.",
      "attrs": null,
      "subkind": "numbered",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bdf858ff-d9df-4337-9a04-a186288a6270",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Value Destruction: $500 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b32a-df59fece7695",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.9,
        "x": 0.05,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "DIS-SYNERGIES LIKELY MORE THAN OFFSET THE POTENTIAL SPECIALTY RESTAURANTS MULTIPLE EXPANSION, WHICH IS EXACERBATED BY EVEN A FRACTIONAL MULTIPLE CONTRACTION AT REMAINING DARDEN",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7a403d51-2c4a-472a-ae8d-e640d466be7f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.85
      },
      "kind": "source-note",
      "text": "CAGRs exclude Red Lobster. Enterprise value assumes 12.5x EV/EBITDA multiple... Darden estimates potential one-time transaction costs of $30 - $50 million.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "19354343-f3eb-4eb2-96b3-968568759969",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.65,
        "x": 0.08,
        "y": 0.48
      },
      "kind": "table",
      "text": "Valuation bridge table showing EBITDA, EV, and multiples for Darden, Specialty Restaurants, and the remaining entity.",
      "attrs": null,
      "subkind": "valuation",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7cc1fead-41dc-43c9-8284-08a8b6da6668",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.05
      },
      "kind": "title",
      "text": "The Board Determined that a Specialty Restaurants Separation Could Result in a Significant Destruction of Value",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "11935d6d-83dd-4b98-a07d-75076ce2d3c3",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "valuation-bridge",
      "slug": null,
      "matchId": "c7b5a69b-d657-4e3a-b5bd-8689d672b4ee",
      "evidence": "The table explicitly calculates the impact of dis-synergies and transaction costs on enterprise value.",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 14,
      "from": 10,
      "beatId": "c947f02f-c50e-45bb-b74f-fb02829726ad",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Evidence & Proof",
      "beatSlug": "consultants-gambit-evidence-proof",
      "evidence": "Slides 10-14 provide evidence and proof of the potential risks and value destruction associated with Starboard's proposals.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Evidence",
      "parentBeatSlug": "evidence"
    }
  ],
  "loops": [
    {
      "to": 14,
      "from": 10,
      "name": "Mece Breakdown",
      "slug": "40-mece-breakdown",
      "bestFor": "Problem structuring, ensuring completeness, strategic analysis",
      "matchId": "717ed16f-5405-47b5-aa26-0399013060a0",
      "evidence": "The document provides a detailed breakdown of the potential risks and value destruction associated with Starboard's proposals.",
      "position": 1,
      "objective": "How do the components of Starboard's proposals break down?",
      "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage",
      "confidence": 0.6,
      "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}