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  "documentTitle": "Darden Restaurants, Inc. (DRI)",
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  "authorName": "Jeffrey C. Smith",
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  "presentationDate": "2014-09-11 00:00:00",
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  "notes": "Uses a contrast-pairs framework to highlight the discrepancy between public and private messaging.",
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      "kind": "callout",
      "text": "We believe the Board misled shareholders in order to justify their own poor decisions",
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      "text": "EBITDA discrepancies undermine Darden’s stated rationale for Red Lobster sale",
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      "kind": "framework",
      "text": "Message to potential debt investors: “The management team believes that each of these issues are temporary in nature, correctable... the Red Lobster management team believes that the identified cost savings are a conservative estimate...\"",
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      "kind": "framework",
      "text": "Message to shareholders: “Red Lobster's business continued to decline... The company cited several ‘key reasons for long term structural decline...’",
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      "text": "EBITDA: $650 million",
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      "text": "A CNBC article entitled “Fishy financial disclosure at Darden’s Red Lobster”, released on August 19, 2014, reported that Red Lobster management communicated different numbers and a different outlook for Red Lobster’s earnings to debt investors than the Board did to Darden shareholders.",
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      "text": "Red Lobster's business continued to decline through fiscal year end, and based on industry trends, the declines were expected to continue for an extended time — Darden Press Release. The management team believes that each of these issues are temporary in nature, correctable, and that they have plans in place to return the business to historic levels of profitability — Red Lobster Debt Memorandum.",
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      "kind": "source-note",
      "text": "Source: CNBC. (1) Assumes 6.5x multiple. (2) “Low-hanging fruit EBITDA” is the EBITDA described in the CNBC article... (3) Although the document in question was published by Red Lobster...",
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      "text": "Management communicated to shareholders there was no hope for Red Lobster, but prospective debt investors received a far different message...",
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