Shares of Cheesecake Factory Inc. got a lift after hours on Monday after the Wall Street Journal reported that an activist investor is pressing the casual-dining chain to spin off a handful of its smaller restaurant concepts.

JCP Investment Management, which has built roughly a 2% stake in Cheesecake Factory, 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.

Texas-based JCP has said it would be willing to plug capital into the spin-off to help bolster its growth prospects, the WSJ said. JCP has also argued that Cheesecake Factory should begin a strategic review of portions of the group that it believes are underperforming or could be offloaded to possible buyers, the paper noted.

An activist investor and son of a co-founder of Pappas Restaurants is reportedly calling for change at the Cheesecake Factory. James Pappas' JCP Investment Management has acquired about 2% of the California-based restaurant chain,

Activist investor JCP Investment Management has urged Cheesecake Factory to spin off three of its restaurant brands into a distinct public company, as reported by the Wall Street Journal. JCP, which holds a 2% stake in Cheesecake Factory,

An activist investor thinks North Italia, Flower Child and Culinary Dropout would be better off combined as their own public company.