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  "documentTitle": "Darden Restaurants, Inc. (DRI)",
  "authorId": "03_Starboard_Value",
  "authorName": "Jeffrey C. Smith",
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  "presentationDate": "2014-09-11 00:00:00",
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  "notes": "Uses a bar chart to highlight Darden's higher R&M spend compared to peers Bloomin' Brands and Brinker.",
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      "kind": "callout",
      "text": "5.9% of current repair and maintenance costs and 0.9% of other restaurant expenses",
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      "text": "Estimated 2014 R&M spend per store",
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      "text": "Darden launched a major R&M initiative in 2012 to centralize R&M with a savings target of $15 - $20 million, but these savings were not realized. Darden budgets R&M costs at 2% of sales, but most R&M costs do not vary with sales.",
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      "text": "Developing and implementing a comprehensive program to enhance the R&M savings effort will realize an estimated $7 - $10 million ($7 - $9K per store) for Darden. Darden must: Promote competitive bidding processes by providers. Give Director of Operations and GMs options to choose their preferred vendor from a selected list of corporate-approved contractors. Negotiation of contracts should occur at the corporate level, so GMs do not have to spend time negotiating with contractors and so Darden can leverage its scale, but choice of providers and services can still be done at the restaurant level, ensuring that corporate is not over-stepping its bounds and making GMs' lives harder.",
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      "text": "R&M spend per store: $65K - $75K",
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      "text": "(1) Estimates of total repairs and maintenance costs, within industry standard of 1.5% - 2.5% of sales.",
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      "text": "Previous opportunities: $177.0 million; + Repairs and maintenance opportunity: $10.0 million; Cumulative opportunity: $187 million",
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      "text": "We believe Darden's prior initiatives to better manage R&M have been ineffective",
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