Cava's (CAVA) underlying demand is showing evidence of momentum and resilience despite incremental macro pressures in Q2 so far, RBC Capital Markets said in a Wednesday note.

Analysts said that a key positive from the company's "impressive" first quarter was that the low-income cohort delivered the strongest performance in the period, bucking the K-shaped economy trend.

RBC said the company's Q2 same-store sales growth so far is tracking in line with the first quarter's 9.7%, adding that there are no signs of any impact from the Iran conflict on traffic growth.

The investment firm also pointed to elevated new-store productivity, growing digital engagement and operational improvements tied to assistant general manager deployments and digital kitchen investments.

RBC retained an outperform rating on the stock and raised its price target to $105 from $100.

Shares of Cava were up nearly 7% in Wednesday trading.

Price: 83.37, Change: +5.25, Percent Change: +6.72