CAVA Group Inc.'s stock surged 6.96% in pre-market trading on Wednesday, extending gains from the previous session.

The sharp move was driven by the Mediterranean restaurant chain reporting first-quarter financial results that handily exceeded Wall Street expectations. CAVA posted earnings per share of $0.20, beating the consensus estimate of $0.17, while revenue of $438.27 million surpassed the forecast of approximately $411 million. Same-restaurant sales grew 9.7%, significantly outperforming estimates, with the increase primarily driven by a 6.8% rise in guest traffic.

Furthermore, CAVA raised its full-year outlook, increasing its guidance for same-restaurant sales growth to a range of 4.5% to 6.5% from 3% to 5% previously. The company also boosted its adjusted EBITDA forecast. Several Wall Street analysts responded by raising their price targets on the stock, citing the company's resilient value proposition and its ability to attract consumers seeking affordable, healthy meals amid economic pressures.