06:09 AM EDT, 10/22/2024 (MT Newswires) -- Cheesecake Factory ( CAKE ) shareholder JCP Investment Management has urged the company to spin off three of its smaller brands into a separate publicly traded company, The Wall Street Journal reported late Monday, citing unidentified sources familiar with matter.

JCP owns a 2% stake in Cheesecake Factory ( CAKE ) and has privately discussed its proposal with the company's executives, the report said.

The activist shareholder agreed to invest in the spin-off company that would house Cheesecake Factory's ( CAKE ) Flower Child, North Italia, and Culinary Dropout brands, the report added.

JCP has also recommended a strategic review for Cheesecake Factory's ( CAKE ) other smaller concepts, the report said.

Cheesecake Factory ( CAKE ) and JCP Investment Management did not immediately respond to MT Newswires' requests for comments.

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