:max_bytes(150000):strip_icc()/GettyImages-2105337284-67953f7b7ce0487e97a5dbb73ab1421a.jpg "Cheesecake Factory Stock Rises on Report Activist Urges Chain To Break Up")
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KEY TAKEAWAYS
- JCP Investment Management, an activist investor, reportedly has built a stake in The Cheesecake Factory and is pushing for the restaurant chain to break up.
- The Cheesecake Factory shares are up 3% in premarket trading.
- According to The Wall Street Journal, Houston-based JCP has a roughly 2% stake in The Cheesecake Factory and is asking the restaurant operator to spin off three of its smaller brands into a separate public company focused on faster growth.
JCP Investment Management, an activist investor, reportedly has built a stake in The Cheesecake Factory (CAKE) and is pushing for the restaurant chain to break up.
The Cheesecake Factory shares are up 3% in premarket trading.
According to The Wall Street Journal, Houston-based JCP has a roughly 2% stake in The Cheesecake Factory and is asking the restaurant operator to spin off three of its smaller brands into a separate public company focused on faster growth.
JCP Seeks Spinoff of North Italia, Flower Child, and Culinary Dropout
Those three brands are Italian casual-dining chain North Italia, health-focused Flower Child, and gastropub Culinary Dropout.
JCP has told Cheesecake Factory that with a separate management team, the brands could focus on meeting their financial goals, the report said. The activist investor, known for its focus on the restaurant industry, reportedly has told executives that it was open to injecting capital into the spun-off firm.
Cheesecake Factory shares are up more than 20% this year.