Cava Group (CAVA) could keep growing as same-store sales recover from the Cyclospora impact, new restaurants continue to outperform expectations, expansion supports demand, and future marketing spending offers another growth option, RBC Capital Markets said.

Same-store sales have improved each week since the early Q3 slowdown, reaching mid-single-digit growth last week, which supports its view that the recent pressure may be temporary. Strong results from newer and older restaurants suggest demand remains healthy and could support further expansion into both existing and new markets, according to the note Tuesday.

Cava's Q2 same-store sales rose 9.0%, above Street expectations of 7.4% and buy-side expectations of about 8%, RBC said. It expects new restaurant openings to remain a key growth driver, with new locations continuing to beat management's expectations for sales and margins across different regions and store formats.

Cava's planned Bay Area expansion next year could perform above average, while higher marketing spending in the future could help build brand awareness and support same-store sales growth, according to the note.

RBC raised its price target on Cava to $95 from $90, while keeping its outperform rating.

Shares of the company were up more than 13% in Wednesday trading.

Price: 68.75, Change: +7.94, Percent Change: +13.06