Analysts wary and cautious over Darden's new board; worry about long term erosion of Olive Garden
SEAFOODNEWS.COM [Nation's Restaurant News] By Ron Ruggless - October 14, 2014 -
Restaurant industry watchers are expressing conern over leadership changes and real estate plans.
Restaurant analysts reacted cautiously to Friday’s ouster of Darden’s entire 12-member board by activist investor Starboard Value L.P.’s slate of directors.
Stephen Anderson, an analyst with Miller Tabak + Co., said the new board has placed a high priority on naming a new chief executive to replace outgoing CEO Clarence Otis.
“We expect the board to seek management candidates with turnaround experience in the restaurant industry,” noted Anderson, adding that he expects Darden’s “first course of action will be to sustain the positive sales momentum at Olive Garden, and expect former concept head and new board member Brad Blum to play a significant role in Olive Garden’s revival.”
Blum served as president of Olive Garden from 1994 to 2002, and has led restaurant brands including Burger King and Romano’s Macaroni Grill...
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