<p> During a conference call with investors this morning, Clarence Otis, Jr. addressed concerns regarding the possible spin-off or sale of Red Lobster, while re-affirming plans to divest the seafood chain without requiring a shareholder vote.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">In its third quarter financial report, Darden’s net earnings and same-store sales have sharply declined, citing inclement weather and rising shrimp costs, confirming investor projections announced earlier this week. Quarterly net earnings went down to $109.5 million from $134.5 million, or 82 cents per share. Red Lobster’s quarterly sales also went down by 8.7% to $611 million, while Olive Garden fell by 3.4% to $929 million, according to a press release. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> <B>Despite the decline in earnings, Darden’s stock climbed $1.30 to $50.60, a 2.64% increase as of 1:38 pm ET.</b> </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> “Given the significance of the initiatives underway at Darden, we believe it’s important that we continue engaging with our shareholders directly and individually so that we receive input in a productive and nuanced manner,” said Otis. “…We believe that shareholders should continue to engage directly with the company and should not view a special meeting as a substitute for that ongoing two way engagement. We look forward to continue to speak with our shareholders and with the investment community.”</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> Activist investors Starboard Value LP and Barington Capital Group are pressuring Darden to significantly improve company performance, according to Chicago Tribune. Starboard is requesting a special meeting among investors to discuss Darden’s plans for Red Lobster, claiming that the possible spin-off or sale of the chain is not in the best interests of the shareholders and could seriously lower the stock’s value. Meanwhile, Barington wants one company to operate the Olive Garden and Red Lobster chains, while another would own brands like LongHorn Steakhouse, Seasons 52, Capital Grille, and three others, Chicago Tribune reports. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> Rather than holding its scheduled analyst and investor meeting on March 28, Darden will meet with analysts and investors individually. How might plans change following this meeting? </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> Stay tuned to AndNowUKnow as we continue following the growing concerns between Darden and its activist investors.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://investor.darden.com/investors/investor-relations/default.aspx" target="_new"> Darden Restaurants </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
