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'This' stock punished too much, says Cramer

(Click for video linked to a searchable transcript of this Mad Money segment)

Sometimes a small development can lead to a big wave of selling.

And sometimes it shouldn't.

Take, for example, the nasty pummeling investors gave AFC Enterprises, the parent company of Popeyes Louisiana Kitchen.

Shares tanked about 8% after the company reported earnings because Wall Street found projected sales guidance disappointing.

Specifically, the company narrowed its guidance for fiscal 2013 same-store sales growth to a range of 3.5 percent to 4.0 percent from its previous range of 3.5 percent to 4.5 percent.

"When a stock with this amount of momentum reports anything even slightly wrong, it's going to get slammed," Cramer explained.

Zigy Kaluzny | Photographer's Choice | Getty Images

Although Cramer concedes that lower same-store sales is a negative, he also feels most other areas of the quarterly report were relatively strong.

For example, fiscal third-quarter profit climbed 30%.

And earnings beat expectations.

Adjusted earnings for the quarter was 38 cents per share, compared to 29 cents per share in the prior-year period. On average, four analysts polled by Thomson Reuters expected the company to earn 32 cents per share for the quarter.

Also, total revenues for the quarter grew 27 percent to $49.3 million from $38.9 million in the same period last year. Analysts had a consensus revenue estimate for the quarter of $46.45 million.

Essentially Cramer believes these numbers illustrate that the company is thriving.

It's a belief he's held for quite some time.

Earlier in the year, the Mad Money host outlined a slew of fundamental catalysts that he expected to drive advance.

Back in August he said, by the end of the year the company will have remodeled 60% of its domestic locations. "These remodeled restaurants are seeing sales volumes that are four percentage points higher than the system average, a very nice bump."

In addition, Cramer has been very bullish on the growth potential.

"We can double our footprint," explained CEO Cheryl Bachelder in an exclusive interview with Cramer. "We're just at the beginning of exploiting that growth. And we're building more and more restaurants every day."

"The essence of great restaurant investing is finding the stock of a restaurant that can fill in whole parts of the country. This company has a lot of runway," Cramer said.

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All told, Cramer remains a fan of this stock. "If you still believe in the long-term story as I do, then you have to view this weakness as a rare buying opportunity," he said. "Typically you don't get a stock like this at a discount."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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