Buffalo Wild Wings Inc. (NASDAQ GS:BWLD) is set to report earnings after the market closes on Tuesday, April 28th (BWLD earnings webcast). Buffalo Wild Wings, Inc., founded in 1982 and headquartered in Minneapolis, Minnesota, is a growing owner, operator and franchisor of restaurants featuring a variety of boldly-flavored, made-to-order menu items including Buffalo-style chicken wings spun in one of 14 signature sauces. Buffalo Wild Wings is an inviting neighborhood destination with widespread appeal and is the recipient of dozens of “Best Wings” and “Best Sports Bar” awards from across the country. There are currently 581 Buffalo Wild Wings locations across 40 states.

BWLD is expected to earn 46 cents for its 1st quarter. We expect the restaurant to announce earnings that will beat investors’ and analysts’ expectations as Buffalo Wild Wings is one of the few companies we have seen with earnings estimates on the rise.

Six of the last 7 times BWLD has beat earnings, the stock price has moved up at least 14% Four of the six positive surprises have seen the stock rise more than 20%. That’s the good news, the bad news is when BWLD misses or meets its earnings estimates, the stock was down 4 of 4 times in its last 11 quarterly checkups.

So far this quarter, most of the restaurant stocks like BWLD have been beating earnings estimates and investors have profited mightily from it. P.F. Chang’s China Bistro saw its stock climb 20% following its earnings and Brinker International Inc., which operates the Chili’s Grill & Bar chain saw its shares rise 6%.

BWLD’s stock performance following earnings plus the recent run of positive restaurant earnings surprises opens up many ways to possibly profit from Tuesday’s earnings report. Speculators could just buy the stock or the BWLD May 40 or 45 call options. More cautious investors use a covered call strategy by buying the stock and selling the May 40 or 45 call options. Those who want to protect against BWLD meeting or missing earnings estimates but still profit as long as the stock moves big one way or the other (and we expect it will), should consider an option straddle by buying the May 45 call option and the May 40 put option.