Investors Applaud Starboard's Continued Push Toward Darden Reorganization

Starboard confirmed their 5.6 percent stake in Darden Restaurants DRI and plans for Darden reorganization. On Sunday, the Wall Street Journal reported that Starboard Value took a 5.6 percent stake in Darden Restaurants and plans to push for Darden reorganization. In the report, Starboard was said to plan to seek a deeper breakup beyond spin off or the sale of the Red Lobster chain. The company is to seek creation of REIT for Darden Property Holdings and combine Red Lobster, Olive Garden, and LongHorn Steakhouse into one unit and leave the remaining chains in another. Starboard on Monday confirmed its stake and commented on its disappointment with management's plan. Starboard said it may make recommendations to the board as the plan laid out by the company falls "significantly short" of actions required to maximize shareholder value. Starboard noted opportunities in Darden's real estate. Darden Restaurants closed at $51.09. Shares were up 3.7 percent in pre-market trading and traded as high as 6.87 percent at $54.60.