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Brinker Sets Out FY29 Targets, Plans Faster Unit Expansion
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Key Takeaways
Brinker targets 4-6% annual revenue growth and double-digit adjusted EPS growth through fiscal 2029.
Chili's development is set to ramp to about 30 new restaurants annually by fiscal 2029.
Brinker plans 60-80 Chili's reimages in fiscal 2027, then about 10% of the fleet annually from fiscal 2028.
Brinker International, Inc. (EAT - Free Report) has outlined a long-term growth strategy focused on sustaining Chili’s momentum while accelerating restaurant development, remodeling its existing estate and returning excess capital to shareholders. The strategy builds on five consecutive years of Chili’s same-store sales growth, improving restaurant economics and continued traffic gains, giving management confidence that the brand still has meaningful runway for expansion.
Chili’s Expansion and Reinvestment Drive Growth
At its 2026 Investor Day, Brinker introduced targets through fiscal 2029 that call for 4-6% annual revenue growth, supported by 2-3% annual unit growth, along with double-digit annual growth in adjusted earnings per share. The company also expects to repurchase 3-5% of its shares annually, subject to board approval of incremental authorizations under its existing share repurchase program.
A key part of the strategy is expanding Chili’s physical footprint. Brinker plans to ramp development to about 30 new restaurants annually across significant new trade areas by fiscal 2029. This marks a meaningful acceleration from fiscal 2027, when the company expects three net new company-owned restaurants. Management had previously indicated that unit growth would remain modest in fiscal 2027, accelerate significantly in fiscal 2028 and reach its targeted run rate in fiscal 2029.
Brinker is also stepping up investment in its existing Chili’s restaurants. After completing 11 reimages in fiscal 2026, the company plans another 60-80 in fiscal 2027 before moving to a cadence of roughly 10% of the fleet annually beginning in fiscal 2028. These investments are intended to enhance restaurant atmosphere and the overall guest experience while supporting the brand’s broader traffic-growth strategy. Strong cash generation should help support these initiatives. In fiscal 2026, net cash provided by operating activities rose 16.3% year over year to $789.4 million. Cash and cash equivalents ended the year at $110 million, up from $18.9 million a year earlier.
EAT’s Stock Price Performance
Shares of EAT have gained 38% in the past six months, outperforming the Zacks Retail - Restaurants industry’s 0.7% rise. The company’s prospects are supported by sustained traffic growth at Chili’s, a strong everyday value proposition, successful menu innovation and continued investments in food quality, service, atmosphere and restaurant operations. However, commodity inflation, particularly higher beef costs, along with wage inflation, elevated advertising expenses, insurance costs and broader restaurant expense inflation remain concerns.
Image Source: Zacks Investment Research
EAT’s Zacks Rank & Key Picks
Brinker currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.
Five Below, Inc. (FIVE - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 68.3%, on average. FIVE stock has gained 25.7% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Five Below’s fiscal 2027 sales and EPS indicates growth of 20.1% and 57.6%, respectively, from the year-ago period’s levels.
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 128.6%, on average. CBRL stock has surged 72.2% year to date.
The Zacks Consensus Estimate for Cracker Barrel's 2026 sales and EPS indicates a year-over-year decline of 5.3% and 97.8%, respectively, from the prior-year levels.
FIGS, Inc. (FIGS - Free Report) has a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has risen 14.9% year to date.
The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 19.7% and 89.5%, respectively, from the prior-year levels.
View the Zacks #1 Rank List
Image: Bigstock
Brinker Sets Out FY29 Targets, Plans Faster Unit Expansion
Key Takeaways
Brinker International, Inc. (EAT - Free Report) has outlined a long-term growth strategy focused on sustaining Chili’s momentum while accelerating restaurant development, remodeling its existing estate and returning excess capital to shareholders. The strategy builds on five consecutive years of Chili’s same-store sales growth, improving restaurant economics and continued traffic gains, giving management confidence that the brand still has meaningful runway for expansion.
Chili’s Expansion and Reinvestment Drive Growth
At its 2026 Investor Day, Brinker introduced targets through fiscal 2029 that call for 4-6% annual revenue growth, supported by 2-3% annual unit growth, along with double-digit annual growth in adjusted earnings per share. The company also expects to repurchase 3-5% of its shares annually, subject to board approval of incremental authorizations under its existing share repurchase program.
A key part of the strategy is expanding Chili’s physical footprint. Brinker plans to ramp development to about 30 new restaurants annually across significant new trade areas by fiscal 2029. This marks a meaningful acceleration from fiscal 2027, when the company expects three net new company-owned restaurants. Management had previously indicated that unit growth would remain modest in fiscal 2027, accelerate significantly in fiscal 2028 and reach its targeted run rate in fiscal 2029.
Brinker is also stepping up investment in its existing Chili’s restaurants. After completing 11 reimages in fiscal 2026, the company plans another 60-80 in fiscal 2027 before moving to a cadence of roughly 10% of the fleet annually beginning in fiscal 2028. These investments are intended to enhance restaurant atmosphere and the overall guest experience while supporting the brand’s broader traffic-growth strategy. Strong cash generation should help support these initiatives. In fiscal 2026, net cash provided by operating activities rose 16.3% year over year to $789.4 million. Cash and cash equivalents ended the year at $110 million, up from $18.9 million a year earlier.
EAT’s Stock Price Performance
Shares of EAT have gained 38% in the past six months, outperforming the Zacks Retail - Restaurants industry’s 0.7% rise. The company’s prospects are supported by sustained traffic growth at Chili’s, a strong everyday value proposition, successful menu innovation and continued investments in food quality, service, atmosphere and restaurant operations. However, commodity inflation, particularly higher beef costs, along with wage inflation, elevated advertising expenses, insurance costs and broader restaurant expense inflation remain concerns.
Image Source: Zacks Investment Research
EAT’s Zacks Rank & Key Picks
Brinker currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.
Five Below, Inc. (FIVE - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 68.3%, on average. FIVE stock has gained 25.7% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Five Below’s fiscal 2027 sales and EPS indicates growth of 20.1% and 57.6%, respectively, from the year-ago period’s levels.
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 128.6%, on average. CBRL stock has surged 72.2% year to date.
The Zacks Consensus Estimate for Cracker Barrel's 2026 sales and EPS indicates a year-over-year decline of 5.3% and 97.8%, respectively, from the prior-year levels.
FIGS, Inc. (FIGS - Free Report) has a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has risen 14.9% year to date.
The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 19.7% and 89.5%, respectively, from the prior-year levels.