Darden Restaurants (DRI) Stock Up After CEO Stepped Down

Darden Stock (DRI) Sometimes all it takes a new boss to make a difference and Darden Restaurant (DRI) stockholders found that out first hand.

Darden announced that Clarence Otis would step down as chairman and chief executive officer, buckling under pressure from activist investors Barington Capital Group LP and Starboard Value LP.

Furthermore, Orlando-based Darden said it would separate the chairman and chief executive roles, and clear the way for some of Starboard’s proposed directors to be elected at its annual meeting.

Darden said it finalized the $2.1 billion sale of Red Lobster to Golden Gate Capital, a deal opposed by both Starboard and Barington, who were pressing for more comprehensive changes.

That was enough to send shares up 5 % in after market trading and the stock has tacked on 4 % on twice the normal volume.

Darden Restaurants, Inc. owns and operates full service restaurants in the United States and Canada. It operates restaurants under the Olive Garden, LongHorn Steakhouse, The Capital Grille, Yard House, Seasons 52, Bahama Breeze, Eddie V’s Prime Seafood, and Wildfish Seafood Grille brand names. As of May 25, 2018, it owned and operated 2,207 restaurants. The company was founded in 1968 and is headquartered in Orlando, Florida.

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