Activist Investor Pushes Cheesecake Factory to Spin Off Smaller Brands

JCP Investment Management seeks to enhance growth by separating North Italia, Flower Child, and Culinary Dropout into a new public company.

JCP Investment Management has acquired a 2% stake in Cheesecake Factory and is advocating for a strategic breakup.
The proposed spinoff would focus on three brands: North Italia, Flower Child, and Culinary Dropout.
Shares of Cheesecake Factory rose by over 4% in pre-market trading following the news.
JCP believes that the brands could achieve greater growth with dedicated management and is open to providing capital for expansion.
The move comes as Cheesecake Factory struggles with stagnant growth, aligning with industry trends to streamline operations.