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2024-10-22 05:52
Cheesecake Factory (NASDAQ:CAKE) rose 5% in after hours trading on a report that an activist investor has taken a stake and is pushing for the restaurant operator to spin off three of its smaller brands into a separate company.
JCP Investment Management, which is focused on the restaurant space, has accumulated a ~2% stake in Cheesecake Factory (CAKE), according to a WSJ report on Monday, which cited people with the matter. JCP first disclosed its stake in a regulatory filing in August.
Houston-based JCP has privately told Cheesecake Factory (CAKE) that its three smaller brands, North Italia, Flower Child and Culinary Dropout, would be better off as a separate company, the WSJ said. JCP has told CAKE it would be willing to put money into the spun-off entity to help with its growth.
JCP also wants the company to start a strategic review to sell off some other smaller concepts, according to the WSJ.
"We regularly engage with shareholders and consider their perspectives," a Cheesecake spokesperson told the WSJ.
Cheesecake Factory (CAKE) is set to report Q3 results next Tuesday.