PHOENIX — In the wake of a move by an activist investor, executives from The Cheesecake Factory clarified the company’s position on its plans for its brands operating under Phoenix-based Fox Restaurant Concepts.
Last week, the Wall Street Journal reported that activist investor JCP Investment Management was calling for Cheesecake Factory (Nasdaq: CAKE) to break up its company and spin three FRC brands – North Italia, Flower Child and Culinary Dropout – into its own publicly traded company.
Cheesecake Factory executives addressed the urgings from the Houston-based investor, which owns about a 2% stake in the company, during the company’s third-quarter earnings call on Oct. 29 by saying Cheesecake is always open to new strategies, but they defended the course of action right now.
“The results announced today demonstrate the power our larger platform provides reinforcing our competence in our strategy to drive sustainable growth and value going forward,” David Overton, the founder and CEO of The Cheesecake Factory said on the call.
Read more of this story from the Business Journal.
