Darden Restaurants has tapped a company insider to take the helm of the Olive Garden parent just four months after an activist investor replaced its entire board.
A new report details the eye-popping numbers surrounding activist campaigns in 2014, which reached new heights and targeted bigger companies than ever.
Darden Restaurants had its first earnings call since its board was completely replaced two months ago, on which it heavily emphasized to-go ordering at its largest chain. “Olive Garden has great food that travels very, very well.”
Activist investing exploded this year, from Olive Garden to Sotheby’s and everything in between. Here’s a look at how companies targeted by activist hedge funds performed in the market after the fact.
Alan Martin says he has eaten 95 meals at Olive Garden over the past six weeks.
The seafood chain, recently sold to private equity firm Golden Gate Capital, plans to revamp its new menu to focus more on its namesake. For diners, it means more surf, less turf.
Darden Restaurants did just that, and in a shockingly swift and public fashion. Here’s a look at just how the board of the casual dining giant and parent to brands like Olive Garden and, until recently, Red Lobster, pulled it off.
In what was almost a foregone conclusion in the days leading up to the Darden annual shareholder meeting, Jeff Smith’s Starboard Value successfully replaced all 12 of its board members.
Darden Restaurants must be dying for 2014 to end.
The outgoing CEO and two top executives of Darden Restaurants stand to receive a total of $68 million over the next two years. Meanwhile, tipped employees of Olive Garden receive $2.13 per hour.
As the heated battle between Darden Restaurants and hedge fund Starboard Value comes to a head, an Olive Garden employee representing the restaurant’s workers spoke exclusively to BuzzFeed News about what life at the chain is really like. “There are things that need to change.”
One of two leading leading proxy advisory firms has recommended shareholders of Olive Garden parent Darden replace the entire board with activist hedge fund Starboard Value’s slate of 12 nominees. The news comes as Starboard is preparing to meet with Darden employees who have threatened direct action ahead of next month’s annual shareholder meeting.
A petition started by an Olive Garden employee to force Darden and Starboard Value to listen to workers’ concerns over layoffs and wages has gathered nearly 7,000 signatures.
Starboard Value’s meticulously detailed takedown of Olive Garden, which claims the restaurants gives away too many free breadsticks, overuses salad dressing, and doesn’t salt the water before cooking its pasta, made it to Last Week Tonight With John Oliver.
Four days after an activist hedge fund released an eviscerating analysis on the state of Olive Garden restaurants, claiming it was giving away too many breadsticks and doesn’t salt the water before cooking its pasta, among other things, parent company Darden responds.
Meet at Olive Garden at 6:10?
Boatloads of breadsticks, too much salad dressing, false wait times, excessively long asparagus, and other grievances of an activist hedge fund gunning for change at the pasta powerhouse.
The parent company of Olive Garden, Longhorn Steakhouse and other fast casual dining chains delayed its annual shareholder meeting amid allegations it was giving different information out to different classes of investors regarding the sale of Red Lobster. Activist investor Starboard Capital isn’t happy with the move.
A lame duck CEO, a swift sale of Red Lobster without shareholder approval, and two hedge funds out for the entire board should make the Darden annual meeting in Orlando next month quite the spectacle. So. Much. Drama.
Darden Restaurants announced late Monday that CEO Clarence Otis will be stepping down after 10 years with the fast casual dining giant. His departure follows the company’s sale of Red Lobster to private equity firm Golden Gate Capital.
The parent company of Olive Garden and Red Lobster missed analyst earnings estimates for the fourth quarter. Executives, who are facing shareholder opposition to the $2.1 billion sale of Red Lobster, called fiscal 2014 “a year of transformation.”
Darden says its sale last month of the seafood restaurant chain for $2.1 billion was full and fair. Activist investors say it was a scorched earth tactic meant to save the jobs of executives. A showdown is set for the company’s annual meeting later this year.
The claim comes in a new presentation by Starboard Value obtained by BuzzFeed and expected to be made public Tuesday morning.
The company said in an earnings call Friday morning that the quarter was “challenging,” especially at Red Lobster, which the company is trying to spin off. Darden’s CEO also urged shareholders to communicate with the company instead of holding a special vote on the spin-off or sale that an activist hedge fund has been fighting for in recent months.
Darden Restaurants reports earnings tomorrow, and another weak report could be enough to move shareholders to side with an activist hedge fund that is trying to stop the company from spinning off its chain of Red Lobster restaurants.
“When you’re here, you’re family.” You know, if your family charged you to binge eat and then talk about how full you are afterwards.
Starboard Value has gone on a hiring and purchasing spree to help with its battle to keep Olive Garden and Red Lobster under one corporate umbrella. How far will they go to keep the chains together?
Olive Garden’s owner showed investors a new logo Monday as it works to reinvigorate the chain. It made changes to the menu last month.