Investor urges Darden to split company

An activist investor is hungry for change at Darden Restaurants Inc.

Hedge fund Barington Capital Group LP, along with other investors, has taken a 2.8 percent stake in Darden, the owner of Olive Garden, Red Lobster and six other restaurant chains. The fund is pushing for Darden to form two separate companies, among other changes, according to people familiar with the matter.

New York-based Barington has held talks with the restaurant operator’s management. The investor group argues that Darden should create one company with its Olive Garden and Red Lobster restaurants, and another with its higher-growth chains, which include Capital Grille, the people said.

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