NEW YORK (TheStreet) -- On CNBC's "Cramer's Mad Dash" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, focused on Darden Restaurants (DRI), saying its shares refuse to move lower despite the restaurant company continually missing earnings and sales estimates.
He compared the stock to eBay (EBAY), which has also not gone lower, although not because of performance. Instead, he said, eBay stock continues to stay afloat because of hedge fund manager Carl Icahn's presence.
Like eBay, Darden continues to have support because of its large shareholder, investment firm Starboard Value, Cramer said.
Cramer said Starboard does not support management's idea to spin off the Red Lobster restaurants. Starboard sees no value in a standalone restaurant chain but sees a lot of value in the real estate the restaurants occupy, according to Cramer.He stated Starboard also wants CEO Clarence Otis out. Cramer agreed that Darden would receive a higher valuation for its real estate and a lower valuation if it split up its Red Lobster and Olive Garden restaurant chains, both of which are suffering from negative same-store sales growth. If Otis steps down, "the stock goes to $55," Cramer concluded. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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