NEW YORK (TheStreet) -- Shares of Darden Restaurants (DRI) are down 0.45% to $55.32 in pre-market trade after it was reported that the company, whose board was ousted last month after an activist investor battle, said its chief financial officer is retiring as part of an overhaul that includes job cuts and other cost-saving measures, Bloomberg Businessweek reports.
Brad Richmond will leave in March unless a new CFO is found sooner, Orlando, FL-based Darden said in a statement.
The company also is cutting one layer of field operations for its restaurants, eliminating about 60 jobs and selling its airplanes, which will save about $20 million a year, it said.
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Last month, Starboard Value LP took over the company's board and CEO Clarence Otis stepped down earlier than planned. Darden, owner of Olive Garden and LongHorn Steakhouse restaurant chains, has been revamping its leadership and strategies under new Chairman Jeffery Smith, Starboard's CEO, Businessweek noted.
TheStreet Ratings team rates DARDEN RESTAURANTS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DARDEN RESTAURANTS INC (DRI) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins."