Oct 21 (Reuters) - Houston-based activist investor JCP

Investment Management is urging Cheesecake Factory ( CAKE ) 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 ( CAKE ), 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 ( CAKE ) did not immediately respond to a request

for comment. Its shares were up about 3% in after-hours trading.