BWLD recovered in early December and held on to those gains for the first part of 2009. With the release of the fourth-quarter earnings report yesterday, the stock has added another 30%-plus to its price.

Reporting a 29% increase in earnings for the quarter and earning 43 cents per share has added luster to a company stock that had been a favorite of investors for the first nine months of 2008.

After losing two-thirds of its value after reporting disappointing results for the third quarter, the stock has clearly regained its momentum. The fundamentals at the company give good reason for investor optimism.

While the fourth-quarter results are typically good for Buffalo Wild Wings due to the activity generated by the college and professional football seasons, the company's balance sheet suggests that it has the capacity to grow and weather the economic recession we are currently experiencing.

BWLD has virtually no debt on its balance sheet and plenty of cash on hand to support its growth plans. There are currently more than 500 company-owned or franchised Buffalo Wild Wings restaurants in operation, with more than 70 added in 2008. The company has established a near-term goal of reaching 1,000 locations in the next three years.

BWLD was the leading performer in the Rosenberg Center Franchise Index for the first nine months of 2008. Based on the fourth-quarter results and the market reaction, the company is likely to lead its competition again this quarter.

While earnings at most of the casual dining companies were positive in the fourth quarter, the stocks of DineEquity (NYSE: DIN), Chipotle Mexican Grill (NYSE: CMG) and P.F. Chang's China Bistro (NASDAQ: PFCB) have not risen at the rate at which BWLD has jumped.

In reaction to the earnings report, an analyst at Jeffries (NYSE: JEF) said that buffalo Wild Wings is "Hands down the best fundamental story in the casual dining sector."

Other analysts have also raised their rating of the stock, recognizing that the earnings disappointment of the third quarter were mostly attributable to the costs related to growth and the negative impact on earnings from depreciation, which is, in reality, a source of cash.

With the strength of the balance sheet and the proven ability of the management team to traverse troubled economic waters, the stock remains an attractive opportunity for investors.

Louis Navellier's PortfolioGrader Pro, which offers free ratings for nearly 5,000 Wall Street stocks, rates BWLD an A or Strong Buy.

Jamie Dlugosch is a contributor to InvestorPlace.com.