Jefferies raised its price target on Cava Group shares to $95 from $85, maintaining a Buy rating.
The company's first-quarter results exceeded expectations. Same-store sales grew 9.7% versus the consensus estimate of 6.2%. Restaurant-level margins also came in slightly above Wall Street forecasts.
Annual revenue growth reached 22%, though the stock trades at a high P/E ratio of 147, reflecting strong investor expectations. Adjusted EBITDA hit $62 million in the first quarter, topping the consensus of $57 million.
The analyst noted that momentum continues into the second quarter. Same-store sales are trending above the company's raised full-year guidance, similar to the roughly 10% level seen in Q1. The underlying business drivers are resonating well, helping capture near-term demand despite the macro backdrop.
The stock has surged 79% over the past six months.
