Shareholders aren’t happy with Darden Restaurants Inc.’s plan to sell or spin off Red Lobster, which doesn’t solve the biggest problem: finding more customers.
Darden, also the owner of Olive Garden and LongHorn Steakhouse, slid 3.5 percent last week after announcing it will separate the Red Lobster seafood chain. Raymond James Financial Inc. says a breakup won’t create much value for Darden, which is trading at a discount to most of its competitors. The plan falls short of activist investor Barington Capital Group LP’s proposals for a bigger shakeup, including ways to profit from its real estate. Starboard Value LP, which disclosed a stake in the company today, also said Darden’s proposal is inadequate.
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