Red Lobster Chain Put Up for Sale

Darden Restaurants has put its ailing Red Lobster chain up for sale, in an attempt to defuse an activist shareholder campaign and to rid itself of a worsening drag on its earnings.

The company, whose other brands include US mid-market staple Olive Garden and LongHorn Steakhouse, also promised to expand a cost-savings drive and to change the way it pays executives.

The moves, which were the result of a board review conducted with the help of Goldman Sachs, demonstrate the increasingly swift impact that activist investors can have on a company's strategy.

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