02:24 PM EDT, 05/10/2024 (MT Newswires) -- Shares of Sweetgreen ( SG ) soared Friday after the fast-casual restaurant chain reported stronger-than-expected first-quarter revenue late Thursday underpinned by comparable sales momentum that RBC Capital Markets said has continued into the second quarter.

The company's same-store sales increased 5% during the three months ended March 31, outperforming Wall Street's expectations by 200 basis points despite weather and holiday headwinds, RBC analyst Logan Reich said in a note emailed Friday.

Sweetgreen's ( SG ) revenue jumped 26% to $157.9 million and outperformed the consensus by 4%, while its adjusted earnings before interest, taxes, depreciation and amortization unexpectedly swung to a profit of $100,000 from a year-earlier loss, the brokerage's report showed.

RBC increased its price target on the stock to $35 from $20 and reiterated an outperform rating. Shares of Sweetgreen ( SG ) surged 33% in Friday afternoon trade.

The restaurant chain increased its fiscal 2024 same-store sales outlook to reflect growth of 4% to 6% compared with a prior view of 3% to 5%. It now sees revenue in the $660 million to $675 million range, up from $655 million to $670 million previously. Analysts polled by Capital IQ are modeling for revenue of $671.6 million in the ongoing year. Quarter-to-date comps are tracking "slightly ahead of the high end," Reich said.

RBC upped its 2024 revenue estimate to $674.1 million from $666 million and its adjusted EBITDA target to $16.4 million from $13.3 million.

After 2025, growth is expected to accelerate, according to the analyst. Sweetgreen's ( SG ) two Infinite Kitchen concepts outperformed with restaurant level margins 1,000 basis points above the company average, according to the brokerage's note. The company plans to open seven new Infinite Kitchens and urban retrofit an additional three to four this year, RBC said.

The company's nationwide launch of steak as a menu item this week wasn't included in Sweetgreen's ( SG ) guidance but "could be a tailwind to comps given its price and potentially drive traffic," Reich said.

Price: 31.30, Change: +7.74, Percent Change: +32.85