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Investor sentiment on Buffalo Wild Wings is wrong, analyst says

Investor sentiment for Buffalo Wild Wings is disconnected from the fundamentals, according to Christopher O'Cull, director and equity research analyst at KeyBanc Capital Markets.

While on CNBC's Power Lunch on Tuesday, O'Cull discussed KeyBanc's survey of restaurant investors to help gauge sentiment in the area.

"We tend to use this report as more of a contrarian call for a lot of the stocks because changes in sentiment are what really drive the quarterly performance," O'Cull said.

Sixty-eight percent of the investors surveyed said Buffalo Wild Wings would report an earnings miss when the company reports its first-quarter performance on April 26. In its last earnings, Buffalo also reported dismal numbers for its fourth quarter, missing analyst expectations on both the top and bottom lines.

O'Cull said sentiment is bearish for Buffalo Wild Wings "given recent trends" to the upside.

"We actually think the sales could be better this quarter than what people are expecting," O'Cull said. "We think the stock could appreciate on the earnings report because of that."

The wing food chain is making moves towards refranchising after resisting pressure from an activist investor.