O'Charley's, Inc. (NDAQ:CHUX) may find itself under pressure from shareholders after activist investor Crescendo Partners disclosed an 8.9 percent stake in the company. The news came shortly after shares plummeted early Friday without reason. The restaurant chain is trading near its 52-week lows off of its high of $23.45 earlier this year.

O'Charley's is a casual dining restaurant company that owns and operates three restaurant concepts under the trade names O'Charley's, Ninety Nine Restaurants, and Stoney River Legendary Steaks. The company owns and operates 227 restaurants in 16 states along with six franchise operations. Restaurants have been a popular activist target recently with many activists demanding spin-offs or share buybacks to unlock value.

Crescendo Partners is most well known for its recent involvement with Topps, where it is attempting to force a buyout of the company. In this case, the hedge fund noted that it was not currently considering taking any typical activist action, but it may amend the filing in the future to include those possibilities. For now, the activist seems content in acquiring shares of the company at near a 52-week low.

In the end, this is a situation definitely worth watching as an activist investor is acquiring a sizable stake at near 52-week lows. Whether or not they will take future actions to actively unlock value remains to be seen, but the possibility is strong given the hedge fund's past actions. Combined, these factors make CHUX a stock worth following!

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