Darden Restaurants to spin-off Red Lobster

Darden Restaurants is the biggest restaurant system in the US (and the world). It operates a total 2,105 restaurants in 50 states. Of this number, 822 are Olive Garden, 678 are Red Lobster, 430 are LongHorn Steakhouse, 49 are The Capital Grille, 44 are Yard House, 33 are Bahama Breeze, 31 are Seasons 52, 9 are Eddie V's Prime Seafood, six are combined of Red Lobster and Olive Garden in the same site for testing, and 3 are Wildfish Seafood Grille.

But the world economic stagnant affect poorly to the operation, for dining-out guests have decreased and sales and profit has been slashed off. The poor results are reason for hedge fund investor to request Darden to separate the company into smaller and profitable companies. 

Darden has announced its plan to separate the Red Lobters restaurants and some other actions in order to response to the request and to improve the business results.

However it seems the hedge investers have not satisfied with the plan. Starboard Value, an investor that owns 5,6% company shares, saying that the steps Darden taking do not meet the requirement to further the benefit for its shareholders, and that they are not satisfied with the company financial results. 

Another investor, Barington Fund has asked in Sept. last year that Darden should consider the separation of the company into 3 separate groups.

It seems that the poor economic storm has not make any excuse to this biggest restaurant system of the US. You can read more details on this in Darden Plans Red Lobster Spinoff  in Forbes.