Last month the entire board of the Darden Restaurants Inc. were replaced by their activist investor Starboard Value LP. Upon the replacement of the entire board, it has been reported that Darden Restaurants Inc. gained an increase of 4.9 percent in terms of sales. Well, the positive effect of board replacement does not just end there. It also reported that the company is able to increase the lower end of the adjusted profit forecast of the company for the entire year.
This recent quarterly report is considered to be the very first report since the activist investor Starboard Value LP took in charge of the entire board. Due to the positive outcome, Darren now stated that they are now currently expecting an adjusted share profit of $2.25 to $2.30 from the company’s continuing operations for the year that is set to end by the month of June 2015. This adjusted expected profit per share is higher than the original forecast of $2.22 to $2.30 per share.