AFC Enterprises (Nasdaq: AFCE) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q4), AFC Enterprises beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.

Gross margins dropped, operating margins grew, net margins grew.

Revenue details
AFC Enterprises notched revenue of $47.5 million. The three analysts polled by S&P Capital IQ hoped for sales of $44.4 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $36.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.34. The three earnings estimates compiled by S&P Capital IQ forecast $0.33 per share. Non-GAAP EPS of $0.34 for Q4 were 42% higher than the prior-year quarter's $0.24 per share. GAAP EPS of $0.35 for Q4 were 52% higher than the prior-year quarter's $0.23 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 70.9%, 70 basis points worse than the prior-year quarter. Operating margin was 30.7%, 620 basis points better than the prior-year quarter. Net margin was 18.1%, 240 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $59.2 million. On the bottom line, the average EPS estimate is $0.42.

Next year's average estimate for revenue is $196.2 million. The average EPS estimate is $1.44.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 71 members out of 87 rating the stock outperform, and 16 members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give AFC Enterprises a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AFC Enterprises is outperform, with an average price target of $29.30.

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