AFC Enterprises (Nasdaq: AFCE) reported earnings on Nov. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), AFC Enterprises missed slightly on revenues and beat expectations on earnings per share.

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

Gross margins grew, operating margins contracted, net margins grew.

Revenue details
AFC Enterprises chalked up revenue of $38.9 million. The three analysts polled by S&P Capital IQ expected a top line of $39.6 million on the same basis. GAAP reported sales were 9.9% higher than the prior-year quarter's $35.4 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 $0.29. The five earnings estimates compiled by S&P Capital IQ anticipated $0.27 per share. GAAP EPS of $0.29 for Q3 were 21% higher than the prior-year quarter's $0.24 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 71.0%, 180 basis points better than the prior-year quarter. Operating margin was 28.5%, 120 basis points worse than the prior-year quarter. Net margin was 17.7%, 130 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $43.8 million. On the bottom line, the average EPS estimate is $0.31.

Next year's average estimate for revenue is $175.6 million. The average EPS estimate is $1.19.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 69 members out of 83 rating the stock outperform, and 14 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give AFC Enterprises a green thumbs-up, and three 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 $29.00.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.