As illustrated in our December 17 th presentation, Darden has significantly underperformed its peers as the Company has struggled to manage its eight brands. We fail to see how the Company's performance will be much different managing seven. We therefore continue to recommend that the Company separate Olive Garden from its higher-growth brands. Given the extensive list of benefits that Darden has stated will be achieved from the separation of Red Lobster, we think that it is only logical that Darden should do the same with respect to its largest brand that accounts for over 40% of the Company's revenue.Unfortunately, Darden's proposed plan appears to us to be more of an attempt to do the minimum necessary to maintain the status quo than an effort to formulate a truly comprehensive strategy to improve long-term shareholder value. We are convinced that Darden can and should be doing more to improve value for its shareholders.
Barington Group Calls Darden Restaurants' Plan To Enhance Shareholder Value Incomplete And Inadequate
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