(Bloomberg) -- Sweetgreen Inc.’s shares surged nearly 50% on Friday after the salad chain increased its annual sales projection and showed improved profitability as it seeks to expand its footprint.

The company now anticipates same-store sales growth of as much as 6%, up from a prior expectation of 5% at most, Sweetgreen said in a statement announcing quarterly results on Thursday. That same measure also rose more than analysts expected in the first quarter. 

Sweetgreen shares rose as much as 46% in New York trading Friday, the biggest intraday gain since late 2021. The stock had already doubled in value this year through Thursday’s close as investors bet a robotic kitchen, known as Infinite Kitchen, may improve profitability. 

Management further fueled optimism about the system in a call with analysts. The chain plans to open seven new locations with the automated system this year, Chief Executive Officer Jonathan Neman said, along with retrofitting three to four restaurants. The two existing robotic kitchen locations are on track to generate sales $2.6 million in sales this year on average, Neman said.

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Sweetgreen’s plans to improve profitability while expanding into suburban areas is winning over investors as many restaurant companies struggle with weak demand. The salad chain said diner traffic was flat last quarter, versus falling traffic at a host of other restaurant companies, including Starbucks Corp., showing the relative resilience of the fast-casual format. 

“The quarter itself from a same-store sales and revenue standpoint was better than expected, and they raised the guidance on the full year based upon that,” Citigroup analyst Jon Tower said in an interview. 

In early May, Sweetgreen added beef to its menu for the first time as it looks to lure in new diners, particularly at dinnertime. The company hasn’t yet factored a potential sales lift from the new dish into its yearly outlook, Chief Financial Officer Mitch Reback said. He also cautioned that the chain’s traffic declined during the summer in the past two years.

Sweetgreen expects to open 23 to 27 new locations this year. The company is planning to test a smaller-store format early next year, Neman said. He added that the company is looking at drive-thrus, describing them as a “big opportunity.” 

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