CAVA Group, Inc. (NYSE:CAVA) shares are moving higher on Wednesday after the company reported better-than-expected 2024 third-quarter earnings after the bell on Tuesday.

The Details: CAVA shares surged about 14% Tuesday after the company released its earnings report. The results detailed earnings per share of 15 cents, beating analyst estimates of $11 cents.

Furthermore, CAVA reported sales of $243.82 million, beating analyst estimates of $233.59 million and representing 39% growth year-over-year. The company provided an in-depth look at its quarterly revenue.

It reported a restaurant-level profit of $61.8 million, a 41.9% increase compared to the same period last year. In addition, it reported same-restaurant sales growth of 18.1%, average unit volume of $2.8 million, and digital revenue mix of 35.8%.

CAVA reported other key pieces of financial data, including adjusted EBITDA of $33.5 million. Additionally, it reported general and administrative expenses of $29.8 million.

"Our third quarter results demonstrate the strength of our Mediterranean category-defining brand and the broad appeal of our unique value proposition, creating what is quickly becoming the next major cultural cuisine category," said Brett Schulman, Co-Founder and CEO.

"Third quarter traffic grew 12.9%, we opened 11 net new restaurants and, driven by the power of our unit economic engine, we generated an average unit volume of $2.8 million. In addition, we continued to execute across our strategic initiatives, completing the national launch of our reimagined loyalty program and rolling out our new labor model ahead of schedule."

The company also raised its outlook for the 2024 fiscal year. It now expects net new restaurant openings to be between 56 and 58, it previously anticipated between 54 and 57. CAVA anticipates same-restaurant sales growth to be from 12% to 13%. It previously expected 8.5% to 9.5%.

Analyst Changes: Following the earnings report, multiple analysts released price target adjustments.

• Wedbush analyst Nick Setyan maintained an Outperform rating on CAVA and raised the price target from $155 to $190.
• TD Cowen analyst Andrew Charles maintained a Buy rating on CAVA and raised the price target from $130 to $150.
• JP Morgan analyst John Ivankoe maintained a Neutral rating on CAVA and raised the price target from $90 to $110.
• Stifel analyst Chris O'Cull maintained a Buy rating on CAVA and raised the price target from $118 to $175.

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CAVA Price Action: At the time of writing, CAVA Group shares are moving 6.97% higher at $155.12, according to data from Benzinga Pro.

Image: Courtesy of CAVA