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Darden to Spinoff Red Lobster

 (Image source: lippincott)

As I mentioned in a previous blog post titled “Interesting Plan to Breakup Darden Restaurants”, Darden Restaurants, Inc. (NYSE:DRI) has finally succumb to the demands of activist hedge fund Barington Capital Group to split up the restaurant chain in an effort to boost shareholder value. Darden Restaurants announced today that it would spin off their Red Lobster chain. The company is also open to an outright sale of Red Lobster. For fiscal year 2013, Red Lobster generated $2.6 billion in sales. In addition, Red Lobster has a total of 705 restaurants in operations between the U.S. and Canada. Going forward, Darden will scale back on the expansion of their current portfolio of restaurants and halt acquisition of new restaurants.