Is Breaking Up Darden the Right Move for Investors?

Shares of Darden Restaurants  were up yesterday on the news that hedge fund Barington Capital Group took a 2.8% stake in the company and would push it toward breaking up.  Motley Fool analyst Taylor Muckerman isn't surprised by a hedge fund taking an interest in Darden, considering it's such a diversified company. But it may be the company's diversification that brings about a breakup; the company is composed of several quickly growing restaurant franchises, as well as some more established businesses, and Taylor wouldn't be surprised to see the company separate those two parts. According to Taylor, investors may want to buy shares now to avoid having to pay for two separate, solid companies after the breakup.

The right moves for your portfolio
Tired of watching your stocks creep up year after year at a glacial pace? Motley Fool co-founder David Gardner, founder of the No. 1 growth stock newsletter in the world, has developed a unique strategy for uncovering truly wealth-changing stock picks. And he wants to share it, along with a few of his favorite growth stock superstars, WITH YOU! It's a special 100% FREE report called "6 Picks for Ultimate Growth." So stop settling for index-hugging gains... and click HERE for instant access to a whole new game plan of stock picks to help power your portfolio.


The article Is Breaking Up Darden the Right Move for Investors? originally appeared on

Fool contributor Mark Reeth has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool owns shares of Darden Restaurants. Try any of our Foolish newsletter services free for 30 days. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.