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Stock Market & Financial Investment News

News Breaks
May 19, 2014
08:05 EDTDRIBarington Group announces opposition to Darden's sale of Red Lobster
In a statement regarding the recent sale, Barington Group CEO James Mitarotonda said, "It is unconscionable that the Darden Board would allow the Company to sell its Red Lobster business for what amounts to a 'fire sale' price after shareholders clearly indicated that they did not want the Company to enter into a transaction unless it was subject to their approval. While the announced deal reinforces the value of Darden's vast real estate assets and the benefits of establishing separate brand-focused operating companies, as structured, we believe it destroys more value than it creates. Given the market's strongly negative reaction to the announcement, it appears that other shareholders are also extremely disappointed by the transaction... After accounting for the $1.5B sale-leaseback, Golden Gate Capital is paying only approximately $600M for Red Lobster's restaurant operations. Based on Red Lobster's pro forma EBITDA of approximately $115M, it appears that Golden Gate is paying less than 5.5x pro forma EBITDA. In comparison, Darden's mature brand competitors, as stand-alone entities, trade at 9x to 10x EBITDA. The transaction also generates approximately $500M of taxes and transaction costs that could be avoided if the Board proceeded with alternative restructuring opportunities that Barington and other shareholders have recommended."
News For DRI From The Last 14 Days
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April 17, 2015
10:20 EDTDRIDarden management to meet with Stephens
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10:17 EDTDRIDarden management to meet with Stephens
Meeting to be held in Orlando on April 21 hosted by Stephens.
April 16, 2015
10:00 EDTDRIOn The Fly: Analyst Initiation Summary
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April 15, 2015
17:24 EDTDRIDarden initiated with a Neutral at Guggenheim
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April 14, 2015
10:01 EDTDRIDarden's Olive Garden unit enters into agreement with Ziosk for tabletop tablets
Olive Garden announced it has entered into an agreement with Ziosk, makers of ordering, entertainment and pay-at-the-table tablets, to begin the introduction of tabletop tablets in all of its restaurants nationwide. Olive Garden has been testing Ziosk in a select number of its restaurants since last year, and the feedback from guests and servers has been positive. Starting in May, Olive Garden will begin a phased rollout of Ziosk tablets into additional restaurants. The program will be supported by robust in-restaurant training to ensure this implementation reaches its full potential of enhancing the overall experience for guests and team members. Olive Garden expects Ziosk tablets to be in all of its 800-plus U.S. locations before the end of the calendar year.

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