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 Rather than hold the meeting, which was scheduled for March 28, the
company will meet individually with analysts and investors, a
spokesman said on Wednesday.
Darden is the biggest U.S. operator of full-service restaurant
chains as measured in outlets.
"We're taking it on the road," said spokesman Rich Jeffers. "We're
reaching out to everyone who was planning to attend."
Jeffers told Reuters the meetings started on Monday and that Darden
believes one-on-one sessions will be more productive than a single
group meeting.
Darden has received negative press in the past for shutting out
analysts who are critical of management. News of the canceled
meeting revived those complaints in some circles.
"When there are problems and they don't want to take difficult
questions, they shut down management access to analysts," said
Hedgeye Risk Management restaurant analyst Howard Penney.
Penney has been a vocal critic of Darden and had not yet registered
to attend the March 28 meeting before it was canceled.
Barington Capital Group LP has been pushing Darden to put its more
mature Olive Garden and Red Lobster brands into one company, and its
higher-growth chains, including LongHorn Steakhouse and Capital
Grille, into another.
It also wants the company to create a publicly traded real estate
investment trust (REIT) to unlock the value of its property
holdings.
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In a conference call with analysts on Monday, Darden reiterated its
plan to spin off or sell Red Lobster seafood chain, rebuffing
Barington and Starboard Value LP, another activist investor
pressuring Darden to rethink plans for Red Lobster. It did not
announce the cancellation of the analyst and investor meeting at
that time, which surprised analysts contacted by Reuters.
Starboard, which owns 5.5 percent of Darden shares, said in late
February that the plan to spin off Red Lobster should be delayed and
put to a shareholder vote. Barington, which has a stake of about 2
percent, said it agreed.
Barington declined comment on Wednesday and Starboard did not
immediately respond to requests.
Darden shares ended 1.4 percent lower at $47.94 on the New York
Stock Exchange on Wednesday, not far from the 52-week low of $44.78.
(Editing by Jeffrey Benkoe and Matthew
Lewis)
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