Shares in Cheesecake Factory Inc. rose nearly 3 percent on Friday after an analyst upgraded the stock.

Howard Penney with Friedman, Billings, Ramsey upgraded the Calabasas Hills restaurant chain to “market perform” from “underperform,” arguing that proposed economic stimulus plans now under discussion in Washington D.C. would help revive the struggling restaurant industry.

“With the current stimulus package and its tax rebates, which essentially puts more money in the consumer’s pocket, we would not be surprised to see a pick up in restaurant top-line trends,” Penney wrote.

Penney also said billionaire investor Nelson Peltz, who made a “significant investment” Cheesecake Factory last month, may influence some changes that will help the company become more profitable.

“If Peltz were to conform to our view that the company needs to reduce its growth capital expenditures and better manage its cash flows, we would view it as a positive for the stock,” Penney said.

Shares in Cheesecake Factory added 2.5 percent to $20.57 in afternoon trading Friday on the Nasdaq. Shares have struggled this year, along with nearly every other company in its sector, dropping as much as 30 percent this year.