In a recent filing with the Securities and Exchange Commission, Starboard Value LP, run by Jeffrey Smith, has submitted an Investor Presentation prepared by Darden Restaurants, Inc. (NYSE:DRI) ahead of their Annual Meeting of Shareholders on October 10, 2014. Aspects such as operational improvement, evaluation of the company’s real estate holdings and other value creation proposals are to be analyzed. Also at the meeting, Starboard Value’s four nominees are to be elected company’s Board of Directors.
Darden Restaurants, Inc. (NYSE:DRI) operates restaurants under the Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V’s, and Yard House brand names. Olive Garden and LongHorn Steakhouse the companies flagship chains, with 837 and 464 restaurants respectively, while Darden Restaurants, Inc. (NYSE:DRI) also boasts the largest real estate portfolio in the dining industry.
On the negative side, compared to its competitors, Darden Restaurants, Inc. (NYSE:DRI) lags behind in terms of margins and stock market performance. The stock has fallen 12% so far this year to a current share price of $47.49, giving the company a market cap of $6.28 billion. Shares are traded at a trailing Price to Earnings (P/E) ratio of 18.95, lower than the industry average of 23.90. For the current quarter, Darden Restaurants, Inc. (NYSE:DRI) is expected to announce revenues of $1.59 billion and earnings per share of $0.32.
The full presentation is available below:
Israel Englander has chosen to reduce his fund’s exposure to Darden Restaurants, Inc. (NYSE:DRI) and has decreased his investment by 10% during the second quarter of 2014. His fund, Millennium Management, now holds 817,240 shares valued at $37.8 million. Ken Griffin, on the other hand, is still bullish on Darden Restaurants, Inc. (NYSE:DRI) and has boosted his stake in the company by 20% to amass approximately 332,000 shares valued at $15.3 million. Two Sigma Advisors, run by John Overdeck And David Siegel, holds 290,500 shares, up 24% during the second quarter, worth in excess of $13.4 million.
Jeffrey Smith is still bullish on RealD (NYSE:RLD) and has recently further increased his fund’s investment in the company. Starboard Value LP now holds 4.55 million shares or 9.1% of the total number of shares outstanding. Smith has also moved to reduce exposure to DSP Group, Inc. (NASDAQ:DSPG), a producer of semiconductors. In a recent filing with the SEC, Starboard has revealed the ownership of 1.35 million shares, which account for 6.1% of common stock outstanding.