ORLANDO, FL - Monday proved to be a day of big news for Darden Restaurants, beginning with the finalization of the $2.1 billion sale of its Red Lobster franchise, and ending with the annoucement that longtime CEO Clarence Otis will be stepping down in the coming months. 

The market reacted favorably to the release of this news, with Darden's stock rising $1.88 or 4.19% in after hours trading in the immediate wake of the news. 

In a press release, Otis told investors, "I am proud to have been a part of Darden's significant growth and expansion, which has enabled us to reach new consumer segments and markets and create significant long-term shareholder value. With the Red Lobster sale complete and progress on our Olive Garden brand renaissance and other strategic priorities underway, this is the right time for me to step down."

Otis will be leaving Darden during a particularily tumultuous period in the company's history. The Red Lobster sale has drawn criticism from many investment analysts and most recently a lawsuit from the hedge fund Starboard Value. According to the Orlando Sentinel, Starboard Value has been among the most ardent critics of Darden's recent course of action, most recently claiming that Darden has been 'hiding' records related to the Red Lobster sale.

“Darden should not be allowed to hide information regarding a deal of this magnitude which has had such negative consequences for its shareholders,” read Starboard’s lawsuit.

Darden officials categorically deny these charges by Starboard, stating that "Darden has sought, through good-faith negotiations with Starboard, to address the issues raised by its demand, including the need to protect the confidentiality of Darden’s books and records. Though we have been unable to reach an agreement with Starboard thus far, we are open to continuing these discussions."

To learn more about the Darden's Red Lobster sale, check out ANUK's previous article on the topic here.

According to USA Today, Otis will remain with Darden through the end of December or until an appropriate successor is found, whichever comes first. 

AndNowUKnow would like to wish Clarence the best as he embarks on this next phase in his professional life. 

Darden Restaurants