NEW YORK (TheStreet) -- Shares of Darden Restaurants Inc. DRI are up this afternoon by 1.40% to $51.47 after the company issued a statement rejecting a proposal by Starboard Value LP and its affiliates.
In part, it read: "We are confident in the initiatives we have announced to improve performance and enhance shareholder value. Optimizing the value of Darden's properties has always been a focus for the company.
"The board of directors, with the assistance of two independent financial advisors and legal counsel, again recently conducted an extensive assessment of alternatives for Darden's real estate and determined that a real estate separation would not enhance long-term shareholder value."
Goldman, Sachs & Co. is the company's financial advisor. Morgan Stanley serves as a financial advisor and Wachtell, Lipton, Rosen & Katz is serving as legal advisor to the board.
TheStreet Ratings team rates DARDEN RESTAURANTS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DARDEN RESTAURANTS INC (DRI) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its reasonable valuation levels, considering its current price compared to earnings, book value and other measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."