Breadstick-hating naysayers Starboard Value — one of Olive Garden's largest investors — has managed to oust the entirety of Darden's board. According to CNBC, it is "uncommon for activist investors to win more than a few spots on company boards." A press release notes that Darden's "new Board is prepared and excited to immediately begin working alongside Darden's management team to put Darden on track for long-term value creation for all shareholders."
This is yet another victory in Starboard's cap. The group has recently made headlines for clashing with Darden, Olive Garden's parent company. CNBC writes that Darden "alienated many investors" after it ignored their vote "requesting a special meeting on the $2.1 billion sale of Red Lobster."
Since then, Starboard unveiled a 300-page treatise documenting everything that Darden was doing wrong, including serving too many breadsticks at Olive Garden, and calling the pasta "poorly handled and generally overcooked." Starboard also revealed that it wants to cut labor costs by eliminating many positions, and forcing waiters to take on the responsibilities of bussers and runners. Is the limited Olive Garden breadstick era near?