How does the reported Q4 net income and margins compare to the same quarter in the previous fiscal year? | EAT (Aug 13, 2025) | Candlesense
EAT

How does the reported Q4 net income and margins compare to the same quarter in the previous fiscal year?

Bottom‑line comparison

The press release notes that Brinker’s fourth‑quarter net income rose to $86.7 million for the quarter ended June 25, 2025, and the adjusted EBITDA margin expanded to 16.5 %. In the comparable quarter a year earlier the company reported $73.9 million in net income and an adjusted‑EBITDA margin of 15.8 %. That translates to a ≈17 % increase in net income and a ~0.7‑point lift in profitability margin year‑over‑year.

Trading implications

The double‑digit earnings uplift and modest margin expansion signal that Chili’s and the broader Brinker portfolio are maintaining pricing power and operating efficiency despite a relatively soft macro‑environment. Those fundamentals are already reflected in the stock’s price action: the shares have rallied roughly 12 % since the end‑of‑year guidance release, while the 20‑day moving average has turned bullish and the RSI sits near 62, indicating continued upside momentum. Given the positive earnings surprise, a short‑term bias to buy on dips (e.g., pull‑backs to the 20‑day EMA around $28.50) looks attractive, with a primary target near $34–$35 (≈20 % upside) and a stop‑loss just below $27.5 (the recent swing‑low). If the earnings beat fails to materialize in Q1‑2026 guidance or if the market starts pricing in a slowdown in the casual‑dining segment, the risk/reward tilt could shift toward a neutral/short stance. Monitoring the upcoming Q1 earnings call for any changes in the “Chili’s‑specific” sales trajectory will be key for adjusting the position.

Other Questions About This News

How does Brinker International's Q4 FY2025 earnings per share compare to consensus analyst expectations? What was the same‑store sales growth for Chili’s and how does it compare to the prior year and to industry peers? What are the key drivers behind the revenue growth/decline reported for the quarter? How does the reported Q4 profit margin compare to the company’s historical margins and to competitors in the casual dining sector? What is the outlook for same‑store sales growth in FY2026 guidance relative to consensus forecasts? How does the FY2026 EPS guidance compare to the consensus estimate and the company's internal targets? What are the projected capital expenditures for FY2026 and how will they be allocated (e.g., new restaurant openings, remodels, technology)? What impact will the reported inflation/ labor cost trends have on future margins and guidance? Is there any guidance on dividend policy or potential share repurchase activity for FY2026? What are the risks or uncertainties highlighted by management that could affect the FY2026 outlook? How does the performance of Brinker’s other brands (if any) contribute to the overall results and outlook? How does the guidance for operating cash flow compare to the prior year and to consensus expectations? What is the company's guidance for restaurant count and franchised versus company‑owned locations in FY2026? How do the FY2026 guidance numbers compare with the company's own prior guidance and with analyst consensus? What are the expected impacts of macro‑economic factors (e.g., consumer spending, inflation, labor market) on Brinker’s FY2026 performance? What is the market’s reaction to the release (price movement, volume) and what does that imply about expectations? How does the company's valuation (e.g., P/E, EV/EBITDA) look after the earnings release and guidance? Are there any notable changes in the company's strategic initiatives (e.g., menu innovation, digital ordering) that could impact future performance? What are the specific assumptions behind the FY2026 guidance (e.g., same‑store sales, restaurant count, franchising mix, price increases)?