Cheesecake Factory up on report of activist investor pushing for spinoff
22/10/2024 13:38
** Shares of Cheesecake Factory CAKE.O rise ~3% to $43.75
premarket
** JCP Investment Management is urging CAKE to explore
spinning off three of its smaller brands, WSJ reports
** The Houston, Texas-based activist investor has built
roughly a 2% stake in Cheesecake Factory, the report adds
** "While we believe the eventual spinoff of CAKE's emerging
brands is viable and would add value to shareholders, we
disagree on the urgency" - Wedbush Securities
** "They're simply too small today and are unlikely to be
large enough in the foreseeable future" - brokerage adds
** Up to last close, stock was up ~21% this year
(Reporting by Akash Sriram in Bengaluru)
((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;))