(Reuters) – Houston-based activist investor JCP Investment Management is urging Cheesecake Factory (NASDAQ:) to explore the possibility of creating a separate public company by spinning off three of its smaller brands, according to a report by the Wall Street Journal on Monday.
JCP Investment Management, which has built roughly a 2% stake in Cheesecake Factory, has privately told executives that North Italia, Flower Child, and Culinary Dropout brands would be better off as a separate company, WSJ reported, citing people familiar with the matter.
Cheesecake Factory did not immediately respond to a request for comment. Its shares were up about 3% in after-hours trading.