New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
August 4, 2014
08:35 EDTDRIDarden responds to statements by Starboard regarding Red Lobster sale
In an open letter sent to its shareholders, Darden said, "Darden's Board determined that divesting Red Lobster was in the best interests of Darden and its shareholders. Despite numerous actions taken to improve the business, Red Lobster experienced years of declines in guest traffic, resulting in volatile and consistently weakening financial performance that significantly burdened Darden's results. Red Lobster's negative trends were continuing and accelerating at the time its sale was announced in May. Contrary to Starboard's assertion that it was "rushed," the sale of Red Lobster was the culmination of a robust and deliberate review process that began in early 2013 well before Starboard's investment. This process was designed and enabled Darden to maximize value and minimize risks associated with continuing to own the business, including risks from the brand's ongoing deterioration. The Red Lobster sale better positions Darden for sustained growth, value creation and consistent return of cash to our shareholders in contrast to Starboard's erroneous claim of value destruction. After careful evaluation, the Board was certain that halting a robust Red Lobster sale process mid-course would have negative consequences for the value received and (if any sale could be effected) for the value of Darden. Although Starboard erroneously claims the business was sold at a "discount," the $2.1 billion purchase price represents a premium multiple compared to comparable restaurant deals and exceeded many industry analysts' expected valuation ranges for the business, particularly taking into account Red Lobster's deteriorating performance. Replacing the entire Darden Board, as Starboard is seeking to do, could be significantly destabilizing to the Company and could jeopardize the Board's current commitment to its $2.20 per share annual dividend."
News For DRI From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
December 16, 2014
18:19 EDTDRIOn The Fly: After Hours Movers
UP AFTER EARNINGS: Dave & Buster's (PLAY), up 7.3%... Darden Restaurants (DRI), up 1.6%. ALSO HIGHER: Auspex Pharmaceuticals (ASPX), up 66.5% after Phase 3 trial of SD-809 met primary efficacy endpoint... Cerus (CERS), up 26.6% after FDA approves Intercept Blood System... American Apparel (APP), up 8.6% after terminating Dov Charney for cause. DOWN AFTER EARNINGS: Heico (HEI), down 1%. ALSO LOWER: Cliffs Natural (CLF), down 10% after price target cut to $1 from $10 at Credit Suisse... Linn Energy (LINE), down 3% after being downgraded to Neutral from Outperform at RW Baird.
17:56 EDTDRIDarden up 1.54% after reporting Q2 results, narrows FY15 EPS view
Subscribe for More Information
16:12 EDTDRIDarden reports Q2 Olive Garden SSS were up 0.5%
Subscribe for More Information
16:10 EDTDRIDarden narrows FY15 EPS view to $2.25-$2.30 from $2.22-$2.30, consensus $2.26
This reflects the expectation that the company's combined U.S. same-restaurant sales growth this fiscal year will be 1% to 2% and the impact of a 53rd operating week in the fiscal year. The current earnings expectations for the year also reflect anticipated support cost savings of $10M from the support cost reductions announced in the second quarter offset by cost pressures related to beef and dairy.
16:07 EDTDRIDarden reports Q2 EPS 28c, consensus 27c
Subscribe for More Information
15:42 EDTDRINotable companies reporting after market close
Notable companies reporting after the market close, with earnings consensus, include HEICO (HEI), consensus 46c; Darden Restaurants (DRI), consensus 27c; Five Star Quality Care (FVE), consensus (3c).
December 15, 2014
15:21 EDTDRINotable companies reporting before tomorrow's open
Subscribe for More Information
15:15 EDTDRIDarden technical comments before earnings
Subscribe for More Information
10:00 EDTDRIOn The Fly: Analyst Upgrade Summary
Subscribe for More Information
08:41 EDTDRIDarden December volatility elevated into Q2 and outlook
Subscribe for More Information
08:16 EDTDRIDarden upgraded at Telsey Advisory
Subscribe for More Information
06:08 EDTDRIDarden upgraded to Market Perform from Underperform at Telsey Advisory

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use