Don't look now, but Winn-Dixie has some momentum.

“The results went from pretty bad to pretty good, pretty suddenly,” Andrew Wolf, an industry analyst with BB&T Capital Markets, Richmond, Va., observed recently. “It was as if someone pushed a button and the turnaround started happening.”

Wolf was referring to financial results released by the Jacksonville, Fla.-based retailer last month that included identical-store sales increases of 1.6% and adjusted EBITDA of $46 million for the fiscal third quarter that ended April 4. The earnings report provided the first glimpse of Winn-Dixie's post-bankruptcy financial condition — a picture that was prettier than many had expected but which approached the optimistic outlook of the retailer's reorganization plan.

To be sure, Wolf remains skeptical of Winn-Dixie achieving a long-term turnaround, noting that low-volume stores and high-caliber competitors are formidable obstacles to overcome. But even the most pessimistic observers note that if Winn-Dixie has a shot, now is the time to take it, while competitors such as Wal-Mart and Bruno's stumble and companies such as Kroger, Safeway and Delhaize provide fresh examples of once-struggling franchises that have been turned around.

“If you're going to try to execute a turnaround, the conditions couldn't be better,” Wolf told SN. “Winn-Dixie is definitely a company that's benefiting from the rising tide of the industry.”

Winn-Dixie in late November emerged from 21 months operating under Chapter 11 bankruptcy protection. Peter Lynch, the retailer's president and chief executive officer, shortly afterward laid out a plan of five initiatives he said could help Winn-Dixie achieve the “tremendous upside potential” described in its plan of reorganization. The initiatives were: rebuilding trust in the Winn-Dixie brand; investing capital into stores; merchandising and marketing stores to meet neighborhood needs; training and developing employees; and generating profitable sales. Lynch was not available to comment for this article.