Investing.com-- Truist Securities upgraded its rating on Cracker Barrel Old Country Store (NASDAQ: CBRL ) after the restaurant chain clocked strong quarterly earnings which, according to the brokerage, sparked increased confidence in an ongoing turnaround.

Truist raised CBRL to Buy from Hold and raised its price target to $55 from $51.

Truist said the company’s quarter earnings- released last week- gave the brokerage confidence in a “sustained improvement-” one that was not reflected in CBRL’s valuation.

The brokerage lauded the restaurant chain’s recent improvements in its menu, increased traffic and consumer satisfaction, and better margins. All this comes as the company embarks on a sweeping turnaround plan.

Truist noted that CBRL’s turnaround was still in an early stage, but the recent results inspired confidence that it will yield meaningful results.

The Lebanon, Tennessee-headquartered chain had last year unveiled a five-part transformation plan to cut costs and update operations to bring them more in line with rivals. The company will also work on updating its menu and improving customer satisfaction.

The last two points already appeared to be yielding results, with the company logging strong sales growth for two consecutive quarters. CBRL had also recently introduced a loyalty program.

Truist noted that short positioning on CBRL still remained high, especially amid uncertainty over the health of the U.S. economy and consumer spending. But the brokerage said that CBRL was capitalizing on some of this by offering more value-oriented products.

But Truist still noted potential risks from generally slow traffic growth, exposure to older consumers, and elevated menu pricing.