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Monday, January 13, 2014

Darden's Red Lobster spinoff plan not enough -investor, (NYSE: DRI)

Activist investor Barington Capital Group said on Monday it was disappointed with a recent plan by Darden Restaurants Inc to spin off its Red Lobster chain to enhance shareholder value.Barington, which leads a shareholders' group that owns a stake of more than 2 percent in the chain, said in a statement it views Darden's plan "as incomplete and inadequate.""Darden's board of directors and management team are focused on creating value for all Darden shareholders," a spokesman said in a statement. "We are confident that our plan, together with actions we are taking to enhance guest experiences and reinvigorate demand, will lead to improved performance in our restaurants and substantially increase value for all Darden shareholders."New York-based Barington, which has previously urged Darden management to break up the company and explore spinning off its real estate properties, said it was particularly disappointed that Darden's plan failed to unlock value from the company's real estate holdings.

Darden Restaurants, Inc. is a full service restaurant company. Shares of DRI fell by 1.16% or $-0.605/share to $51.52. In the past year, the shares have traded as low as $44.11 and as high as $55.25. On average, 1761040 shares of DRI exchange hands on a given day and today's volume is recorded at 316286.