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'Where the Money Is' In Focus: Darden Restaurants

By Mark Reeth and Sean O'Reilly – Jul 3, 2014 at 9:00AM

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Darden's Red Lobster sale leaves Olive Garden as its most profitable business, but it's struggling. What can the company do to turn things around?

Darden Restaurants (DRI -0.17%), the parent company of Olive Garden, Longhorn Steakhouse, and several other popular restaurant brands, recently sold its Red Lobster chain for $2.1 billion. However, despite the sale of one of the companies' major restaurant chains, activist investors still want Darden to do more. With an ailing Olive Garden now accounting for 58% of the company's revenue, the company will have to boost Olive Garden's results if it is to fend off calls for more drastic measures from activists. 

In this episode of The Motley Fool's Where the Money Is, consumer-goods editor Mark Reeth has CG analyst Sean O'Reilly discuss what Darden might do in order to reinvigorate its business and appease investors. 

 

 

Mark Reeth has no position in any stocks mentioned. Sean O'Reilly has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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