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Friday, June 20, 2014

RPT-Olive Garden owner Darden's profit forecast disappoints, (NYSE: DRI)

Darden Restaurants Inc, facing shareholder resistance to the planned sale of its struggling Red Lobster seafood chain, forecast a full-year profit far below analysts' expectations.Starboard Value LP launched a fight to take over Darden's board last month, a week after the company said it planned to sale Red Lobster to Golden Gate Capital for $2.1 billion.The activist investors called the deal a "destructive transaction" that ignored shareholder rights, and said it would nominate a full 12-candidate slate for election at the company's Sept. 30 annual meeting.Starboard, backed by Barington Capital, has said it had identified other ways to save costs, boost revenue and revamp the company that would not require the sale.

Darden Restaurants, Inc. is a full service restaurant company. Shares of DRI fell by 2.36% or $-1.17/share to $48.35. In the past year, the shares have traded as low as $44.78 and as high as $54.89. On average, 1203670 shares of DRI exchange hands on a given day and today's volume is recorded at 2693509.