This story has been updated from 2:35 pm EST with analysts comments, stock price update.
NEW YORK (TheStreet) -- Shares of Darden Restaurants Inc. (DRI) are down 1.6% to $47.50 after the company reported a quarterly loss, and as it faces activist investor Starboard Value LP's release of its revised plan to boost Darden's profit and stock price.
Starboard, one of Darden's largest investors with an 8.8% stake, late Thursday announced a proposal that included plans to sell Darden's real estate, franchise its restaurants, spin off The Capital Grille, Yard House and other chains and fix the flagship Olive Garden chain, Reuters noted. Analysts indicated Friday that regardless of Starboard's initiatives, pressure is mounting for Darden to make changes at its struggling Olive Garden brand.
Starboard, which also is seeking to replace Darden's entire 12-member board, said it has identified up to $326 million in cost savings. It believes its strategy could make Darden's stock worth as much as $86 per share, even before it got to work on fixing Olive Garden or selling restaurants to franchisees.
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Darden reported a net loss of $19.3 million, or 14 cents per share, from continuing operations for its first quarter ended Aug. 24. It said quarterly sales at Olive Garden restaurants open at least 16 months declined 1.3%.
Here's what analysts had to say.
Lynne Collier, Sterne Agee (Buy; $55 PT)