Earlier in December, Darden Restaurants announced that as part of its plan to enhance shareholder value, its Board of Directors is looking at selling or spinning-off its Red Lobster brand.  Red Lobster is the casual dining chain that with over 700 restaurants in the United States and Canada, is the largest full service dining seafood specialty restaurant operator in North America.  The chain had annual sales of approximately $2.6-billion in fiscal year 2013 however the brand has not been able to match the growth experienced in other Darden banners. Though no firm commitment has been established, Kim Lopdrup, currently Darden's President, Specialty Restaurant Group and New Business, has been selected to serve as CEO of Red Lobster following the separation.  As Lopdrup shifts his focus to support the Red Lobster separation, Harald Herrmann, currently President of Yard House, will assume the role of President of the Specialty Restaurant Group in January.  Salli Setta, who was appointed as President of Red Lobster in July, will continue in that role.  If, as expected, the form of a separation for Red Lobster is a spin-off, Brad Richmond, who has been Senior Vice President and CFO of Darden since 2006, will become Chief Financial and Administrative Officer of Red Lobster upon completion of the transaction.  “While we are highly confident the future is bright for both Red Lobster and Darden excluding Red Lobster,” explained Clarence Otis, Darden's Chairman, CEO , “ we also recognize that the operating priorities, capital requirements, sales and earnings growth prospects, and volatility profiles of the two parts of the business are increasingly divergent.  By establishing two independent companies, a separation will better enable the management teams of each company to focus their exclusive attention on their distinct value creation opportunities."  Also as part of its plan to enhance value, Darden will suspend new unit growth in the Olive Garden banner and limit growth at the LongHorn Steakhouse brand and Darden will forgo acquisitions of additional brands for the foreseeable future.

Darden Concepts Inc., 1000 Darden Center Dr., Orlando, Florida 32837 (407/245-4000 www.darden.com)

Red Lobster (www.redlobster.com)