Special to SEGAZINE
Darden Restaurants is planning to spinoff its Red Lobster unit, making the restaurant chain the latest to bow to the demands of activist shareholders.
Darden, the company behind Olive Garden, LongHorn Steakhouse, Capital Grille and Bahama Breeze and other chains, has disappointed investors with declining profits for each of the past three years has been under pressure to improve performance. As part of its Red Lobster announcement, the company also said earnings this year would dip further than expected.
Shares of Darden fell $2.70, or 5.1%, to $50.22 in midday trading. Shares of the restaurant chain are up 11.4% this year.