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<p style="margin: 0pt; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Description of Business</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Biglari Holdings Inc. (“Biglari Holdings”
or the “Company”) is a diversified holding company engaged in a number of diverse business activities.  The Company
is led by Sardar Biglari, Chairman and Chief Executive Officer of Biglari Holdings and its major operating subsidiaries. The
Company’s long-term objective is to maximize per-share intrinsic value of the Company. Our strategy is to reinvest cash generated
from our operating subsidiaries into any investments with the objective of achieving high risk-adjusted returns.  All
major operating, investment, and capital allocation decisions are made for the Company and its subsidiaries by Sardar Biglari,
Chairman and Chief Executive Officer. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.25in"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Fiscal Year</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Our fiscal year ends on the last Wednesday
in September. Fiscal years 2011 and 2010 contain 52 weeks, while fiscal year 2009 contains 53 weeks.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Principles of Consolidation</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">As of September 28, 2011, the consolidated
financial statements include the accounts of (i) the Company, (ii) its wholly−owned subsidiaries Steak n Shake Operations,
Inc. (“Steak n Shake”), Western Sizzlin Corporation (“Western”), and Biglari Capital Corp. (“Biglari
Capital”), and (iii) investment related subsidiaries and limited partnerships (the “consolidated affiliated partnerships”).
As a result of the Company’s acquisitions of Western and Biglari Capital, the Company acquired financial interests in The
Lion Fund, L.P. (the “Lion Fund”), Western Acquisitions, L.P., Mustang Capital Partners I, L.P. and Mustang Capital
Partners II, L.P., investment limited partnerships (collectively referred to as consolidated affiliated partnerships), for which
the Company has a substantive controlling interest. During the first quarter of fiscal year 2011, Mustang Capital Partners I, L.P.
and Mustang Capital Partners II, L.P. were liquidated and the funds distributed to the partners. During the third quarter of fiscal
year 2011, Western Mustang Holdings, L.L.C. sold its interests in Mustang Capital Management, L.L.C. and Mustang Capital Advisors,
L.P. Refer to Note 5 for further information regarding the sale.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">	 </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">We consolidate entities in which we have a
wholly−owned or controlling interest in the general partner. The consolidated affiliated partnerships’ assets and liabilities
are consolidated on the Company’s balance sheet even though outside limited partners have majority ownership in all of the
investment partnerships. The Company does not guarantee any of the liabilities of its subsidiaries that are serving as general
partners to these consolidated affiliated partnerships. All intercompany accounts and transactions have been eliminated in consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.25in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The financial information of Western and Biglari
Capital has been reflected in the consolidated financial statements of the Company as of March 30, 2010 and April 30, 2010, their
respective acquisition dates. Western’s and Biglari Capital’s September 30 year end for financial reporting purposes
differs from the end of the Company’s fiscal year, the last Wednesday in September.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.25in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Cash and Cash Equivalents</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Cash equivalents primarily consist of U.S.
Government securities and money market accounts, all of which have original maturities of three months or less. Cash equivalents
are carried at fair value. Our policy is to reinvest cash equivalents to acquire businesses or to purchase securities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Investments</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Our investments consist of available-for-sale
securities and are carried at fair value with net unrealized gains or losses reported as a component of Accumulated other comprehensive
income in Shareholders’ equity. Realized gains and losses on disposals of investments are determined by specific identification
of cost of investments sold and are included in Realized investment gains/losses, a component of Other income.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Investments Held by Consolidated Affiliated
Partnerships</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The consolidated affiliated partnerships
are, for purposes of Accounting Principles Generally Accepted in the United States (“GAAP”), investment companies
under the AICPA Audit and Accounting Guide <i>Investment Companies.</i> The Company has retained the specialized accounting
for these entities, pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”) Topic 946-810-45 (formerly EITF Issue No. 85-12, <i>Retention of Specialized Accounting for Investments
in Consolidation</i>)<i>. </i>As such marketable equity securities held by the consolidated affiliated partnerships are
recorded at fair value with net unrealized and realized investment gains/losses included in Investment gains/losses of
Consolidated Affiliated Partnerships, a component of Net revenues on the Consolidated Statement of Earnings.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Concentration of Equity Price Risk</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Our investments are generally concentrated
in common stocks. A significant decline in the general stock market or in the price of major investments may produce a large decrease
in our consolidated Shareholders’ equity and under certain circumstances may require the recognition of losses in the Consolidated
Statement of Earnings. Decreases in values of equity investments can have a material adverse effect on our consolidated Shareholders’
equity.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Receivables</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Our accounts receivable balance consists primarily
of franchisee, tax, and other receivables. We carry our accounts receivable at cost less an allowance for doubtful accounts which
is based on a history of past write-offs and collections and current credit conditions.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Inventories</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Inventories are valued at the lower of cost
(first-in, first-out method) or market, and consist primarily of restaurant food items and supply inventory.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Assets Held for Sale</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Assets held for sale consists of property and
equipment related to restaurants and land that is currently being marketed for disposal. Assets held for sale are reported at the
lower of carrying value or estimated fair value less costs to sell.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Property and Equipment</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Property and equipment are stated at cost less
accumulated depreciation and amortization. Depreciation and amortization are recognized on the straight-line method over the estimated
useful lives of the assets (10 to 25 years for buildings and land improvements, and 3 to 10 years for equipment). Leasehold improvements
are amortized on the straight-line method over the shorter of the estimated useful lives of the improvements or the term of the
related leases. Interest costs associated with the construction of new restaurants are capitalized. Major improvements are also
capitalized while repairs and maintenance are expensed as incurred. We review our long-lived assets whenever events or changes
in circumstances indicate that their carrying amounts may not be recoverable. For purposes of this assessment, assets are evaluated
at the lowest level for which there are identifiable cash flows. If the future undiscounted cash flows of an asset are less than
the recorded value, an impairment is recorded for the difference between the carrying value and the estimated fair value of the
asset. Refer to Note 3 for information regarding asset impairments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Goodwill and Intangible Assets</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Goodwill and indefinite life intangibles are
not amortized, but are tested for potential impairment on an annual basis, or more often if events or circumstances change that
could cause goodwill or indefinite life intangibles to become impaired. Other purchased intangible assets are amortized over their
estimated useful lives, generally on a straight-line basis. We perform reviews for impairment of intangible assets whenever events
or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized
when estimated future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying
value. When an impairment is identified, we reduce the carrying value of the asset to its estimated fair value. No impairments
were recorded on goodwill or intangible assets during fiscal years 2011, 2010, or 2009. Refer to Note 9 for information regarding
our goodwill and other intangible assets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Capitalized Software</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Internal-use software is stated at cost
less accumulated amortization and is amortized using the straight-line method over its estimated useful life ranging from
three to seven years. Software assets are reviewed for impairment when events or circumstances indicate that the carrying
value may not be recoverable over the remaining lives of the assets. During the software application development stage,
capitalized costs include external consulting costs, cost of software licenses, and internal payroll and payroll-related
costs for employees who are directly associated with a software project. Upgrades and enhancements are capitalized if they
result in added functionality which enables the software to perform tasks it was previously incapable of performing. Software
maintenance, training, data conversion, and business process reengineering costs are expensed in the period in which they are
incurred. Capitalized software is included in the balance of Other assets in the Consolidated Balance Sheet.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Due to Broker</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">D<font style="color: black">ue to broker represents
margin debit balances collateralized by certain of the Company’s investment in securities. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Operating Leases</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The Company leases certain property under operating
leases. Many of these lease agreements contain rent holidays, rent escalation clauses and/or contingent rent provisions. Rent expense
is recognized on a straight-line basis over the expected lease term, including cancelable option periods when failure to exercise
such options would result in an economic penalty. In addition, the rent commencement date of the lease term is the earlier of the
date when we become legally obligated for the rent payments or the date when we take access to the property or the grounds for
build out.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Revenue Recognition</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i>Net Sales</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">We record revenue from restaurant sales at
the time of sale, net of discounts. Revenue from the sale of gift cards is deferred at the time of sale and recognized upon redemption
by the customer or at expiration of the gift cards. Sales revenues are presented net of sales taxes. Cost of sales primarily includes
the cost of food and disposable paper and plastic goods used in preparing and selling our menu items and excludes depreciation
and amortization, which is presented as a separate line item on the Consolidated Statement of Earnings.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i>Franchise Fees</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Unit franchise fees and area development fees
are recorded as revenue when the related restaurant begins operations. Royalty fees and administrative services fees are based
on franchise sales and are recognized as revenue as earned.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i>Other Revenue</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Other revenue relates primarily to rental income.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i>Management Fee Income</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Management fees received by the Company are
calculated quarterly based on contractual rates and the dollar amount of assets under management.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i>Investment Gains/Losses from Consolidated
Affiliated Partnerships</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Investment gains/losses from consolidated affiliated
partnerships include realized and unrealized gains/losses on investments held by consolidated affiliated partnerships. Realized
gains/losses from the disposal of investments held by consolidated affiliated partnerships are determined by specific identification
of cost of investments sold.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Insurance Reserves</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">We self-insure a significant portion of expected
losses under our workers’ compensation, general liability, auto, and medical liability insurance programs, and record a reserve
for our estimated losses on all unresolved open claims and our estimated incurred but not reported claims at the anticipated cost
to us. Insurance reserves are recorded in the balance of Accrued expenses in the Consolidated Balance Sheet.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Earnings Per Share</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Earnings per share of common stock is based
on the weighted average number of shares outstanding during the year. For financial reporting purposes all common shares of the
Company held by the consolidated affiliated partnerships are recorded in Treasury stock on the Consolidated Balance Sheet. For
purposes of computing the weighted average common shares outstanding, the shares of treasury stock attributable to the unrelated
limited partners of the consolidated affiliated partnerships — based on their proportional ownership during the period —
are considered outstanding shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i><br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The following table presents a reconciliation
of basic and diluted weighted average common shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2010</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2009</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; vertical-align: top">Basic earnings per share:</td><td> </td>
<td colspan="3" style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 46%; text-align: left; padding-bottom: 1pt; text-indent: -0.15pt; padding-left: 13.65pt">Weighted average common shares</td><td style="width: 5%; font-weight: bold; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="width: 11%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,329,745</td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="width: 5%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right">1,396,892</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 5%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 11%; border-bottom: Black 1pt solid; text-align: right">1,424,178</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; text-indent: -9.35pt; padding-left: 13.65pt">Diluted earnings per share:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; text-indent: -0.15pt; padding-left: 13.65pt">Weighted average common shares</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">1,329,745</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,396,892</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,424,178</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -0.15pt; padding-left: 13.65pt">Dilutive effect of stock awards</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">6,948</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,483</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,371</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; text-indent: -0.15pt; padding-left: 13.65pt">Weighted average common and incremental shares</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">1,336,693</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,405,375</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,429,549</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -9.35pt; padding-left: 22.5pt">Number of share-based awards excluded from the calculation of earnings per share as the awards’ exercise prices were greater than the average market price of the Company’s common stock</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">705</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,962</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">23,427</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Stock-Based Compensation</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">We account for all stock-based compensation, including grants of employee stock options, nonvested stock and shares issued under our employee stock purchase plan, using the
fair value based method. Refer to Note 17 for additional information regarding our stock-based compensation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>The Steak n Shake 401(k) Savings Plan</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The Steak n Shake 401(k) Savings Plan (the
“401(k) Plan”) is a defined contribution plan covering substantially all employees after they have attained age 21
and completed six months of service and allows employees to defer up to 20% of their salaries. The Company made non-discretionary
matching contributions through October 14, 2008. The matching contributions during fiscal year 2009 were equal to 50% of participants’
pretax contributions and subject to a maximum of 6% of participants’ eligible compensation contributed to the 401(k) Plan.
Non-discretionary matching contributions paid in fiscal year 2009 were $51. During fiscal year 2009, the 401(k) Plan was amended
to eliminate the non-discretionary contributions and allow for discretionary matching contributions. Discretionary matching contributions
of $271 and $253 were made in fiscal year 2011 and 2010, respectively. Discretionary contributions starting in 2010 were based
on the profitability of the Company and are subject to quarterly revision.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Marketing Expense</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Advertising costs are charged to expense at
the latter of the date the expenditure is incurred, or the date the promotional item is first communicated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Non-Qualified Deferred Compensation Plan</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">We maintain a self-directed Non-Qualified Deferred
Compensation Plan (the “Non-Qualified Plan”) for executive employees. The Non-Qualified Plan allows highly compensated
employees to defer amounts from their salaries for retirement savings and includes a discretionary employer match generally equal
to the amount of the match the employee would have received as a participant in our 401(k) Plan. The Non-Qualified Plan is structured
as a rabbi trust; therefore, assets in the Non-Qualified Plan are subject to creditor claims in the event of bankruptcy. We recognize
investment assets in Other assets on the Consolidated Balance Sheet at current fair value. A liability of the same amount is recorded
in Other long-term liabilities on the Consolidated Balance Sheet representing our obligation to distribute funds to participants.
The investment assets are classified as trading, and accordingly, realized and unrealized gains and losses are recognized in income.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Use of Estimates</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Preparation of the consolidated financial statements
in accordance with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results
could differ from the estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>New Accounting Standards</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">In September
2011, FASB issued Accounting Standards Update (“ASU”) 2011−08, <i>Testing Goodwill for Impairment</i> (“ASU<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" /></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">2011−08”). ASU 2011−08 amends
Accounting Standards Codification (“ASC”) Topic 350, <i>Intangibles – Goodwill and Other </i>(“ASC Topic
350”), and allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step
quantitative impairment test. An entity would not be required to calculate the fair value of a reporting unit unless the entity
determines, based on qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount.
The guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December
15, 2011, which is effective for the Company’s first quarter of fiscal year 2013. We do not believe that the adoption of
ASU 2011–08 will have a material effect on the Company’s consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">In June 2011, the FASB issued ASU 2011−05,
<i>Presentation of Comprehensive Income</i> (“ASU 2011−05”). ASU 2011−05 amends ASC Topic 220, <i>Comprehensive
Income</i> (“ASC Topic 220”), and allows entities the option to present the total of comprehensive income, the components
of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income
or in two separate but consecutive statements. The guidance should be applied retrospectively and is effective for interim and
annual periods ending after December 15, 2011, which is effective for the Company’s first quarter of fiscal year 2012. The
adoption of ASU 2011−05 will not impact the measurement of net earnings or other comprehensive income.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">In May 2011, the FASB issued ASU 2011−04,
<i>Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs </i>(“ASU 2011−04”).
ASU 2011−04 attempts to improve the comparability of fair value measurements disclosed in financial statements prepared in
accordance with U.S. GAAP and IFRS. Amendments in ASU 2011− 04 clarify the intent of the application of existing fair value
measurement and disclosure requirements, as well as change certain measurement requirements and disclosures. ASU 2011−04
is effective for the Company’s first quarter of fiscal year 2012 and will be applied on a prospective basis. We do not believe
that the adoption of ASU 2011-04 will have a material effect on the Company’s consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">In January 2010, the FASB issued ASU 2010−06,
<i>Improving Disclosures about Fair Value Measurements</i> (“ASU 2010−06”). ASU 2010−06 amends ASC Topic
820, <i>Fair Value Measurements and Disclosures</i> (“ASC Topic 820”), and requires additional disclosure about significant
transfers between levels 1, 2, and 3 of the fair value hierarchy as well as disclosure of changes in level 3 activity on a gross
basis. In addition, the guidance clarifies existing requirements regarding the required level of disaggregation by class of assets
and liabilities and also clarifies disclosures of inputs and valuation techniques. The guidance became effective beginning in the
Company's second quarter of fiscal year 2010, except for the requirement to disclose level 3 activity on a gross basis, which will
be effective as of the beginning of the Company's fiscal year 2012. The adoption did not have a material impact on the Company's
consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">In June 2009, the FASB issued guidance that
amends FASB ASC Section 810-10-25, <i>Consolidation — Recognition</i> (FASB Interpretation No. 46(R)) to require
an entity to perform an analysis to determine whether the entity’s variable interest or interests give it a controlling financial
interest in a variable interest entity. The guidance is effective for our fiscal year 2011. The adoption of this standard did not
have a material impact on our consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">In June 2009, the FASB issued guidance related
to the accounting for transfers of financial assets. The guidance is intended to improve the relevance, representational faithfulness,
and comparability of the information that an entity provides in its financial statements about a transfer of financial assets;
the effects of a transfer on its financial position, financial performance, and cash flows; and a transferor’s continuing
involvement, if any, in transferred financial assets. The guidance is effective for our fiscal year 2011. The adoption of this
standard did not have a material impact on our consolidated financial statements.</p>
<p style="margin: 0pt; text-align: left"></p>
<p style="margin: 0pt; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Biglari Capital Corp. </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">On April 30, 2010, the Company acquired Biglari
Capital for $4,107 pursuant to a Stock Purchase Agreement (the “Stock Purchase Agreement”) between the Company and
Sardar Biglari, Chairman and Chief Executive Officer, who was the sole shareholder of Biglari Capital. Biglari Capital is the general
partner of the Lion Fund, a Delaware limited partnership operating as a private investment fund.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The Lion Fund is an investment fund that accounts
for its investments at fair value. The fair value of the noncontrolling interest approximated the net asset value of the Lion Fund
attributable to investors other than the Company, less the accrued incentive fee at the time of the acquisition. The Lion Fund
investors may redeem their interests in the Lion Fund upon certain occurrences.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">At the acquisition date, the Lion Fund owned
76,421 shares of common stock of the Company as well as $7,540 of the Company’s debentures. The fair value of the Company
stock owned by the Lion Fund was $29,900, which was recorded as Treasury stock yet the shares remain outstanding. The debentures
owned by the Lion Fund were recorded as a debt extinguishment. As the debentures had just been issued by the Company 30 days before
the acquisition, the fair value of the debentures approximated their cost, and no gain or loss was recorded on the debt extinguishment
(the debentures remained outstanding until their redemption on March 30, 2011 [See Note 15]). The noncontrolling interest in the
Lion Fund had a fair value of $44,193 as of April 30, 2010.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The Company accounted for the acquisition in
accordance with ASC Topic 805, whereby the purchase price paid is allocated to the assets acquired and liabilities assumed from
Biglari Capital based on their estimated fair values as of the closing date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Acquisition related costs were not material
and have been recorded in General and administrative expenses in the Consolidated Statement of Earnings.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The following table represents the Company’s
assessment of the total purchase consideration allocated to the estimated fair values of the assets acquired and liabilities assumed
from Biglari Capital as of April 30, 2010:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Purchase Allocation</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 70%; text-align: left">Investments</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">10,926</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">Company debentures</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7,540</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">  Total assets acquired</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">18,466</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Current liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">66</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Redeemable noncontrolling interests of consolidated affiliated partnerships</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">44,193</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">Treasury stock</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(29,900</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">  Total liabilities assumed and treasury stock acquired</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">14,359</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 2.5pt">Net assets acquired</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,107</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Western Sizzlin Corporation</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">On March 30, 2010, the Company, through its
wholly-owned subsidiary, Grill Acquisition Corporation (“Merger Sub”), acquired 100% of the outstanding equity interests
of Western, pursuant to an Agreement and Plan of Merger among the Company, Merger Sub and Western, dated as of October 22, 2009
(the “Merger Agreement”). Sardar Biglari, Chairman and Chief Executive Officer, was also Chairman and Chief Executive
Officer of Western at the time of the acquisition. Pursuant to the Merger Agreement, Merger Sub merged with and into Western, with
Western continuing as the surviving corporation and as a wholly-owned subsidiary of the Company. Western, which is primarily engaged
in the franchising of restaurants, includes (i) Western Sizzlin Franchise Corporation, Western Sizzlin Stores, Inc., Western
Sizzlin Stores of Little Rock, Inc., Austins of Omaha, Inc., Western Investments, Inc., and Western Properties, Inc.,
wholly-owned subsidiaries, (ii) Western Acquisitions, L.P., (iii) Western Real Estate, L.P., (iv) Western Mustang Holdings, L.L.C.
and Mustang Capital Management, L.L.C., (v) Mustang Capital Advisors, L.P., a majority-owned limited partnership, and (vi) two
limited partnerships, Mustang Capital Partners I, L.P. and Mustang Capital Partners II, L.P.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Under the terms of the Merger Agreement, each
share of Western’s common stock was cancelled upon the completion of the merger and converted into the right to receive
a pro rata portion of a new issue of 14% redeemable subordinated debentures due 2015 issued by the Company (the “Debentures”)
in the aggregate principal amount of $22,959 (approximately $8.07 principal amount of Debentures per Western share), with cash
of $194 paid in lieu of fractional Debenture interests. See Note 15 for further information on the Debentures.<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" /></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The Company accounted for the acquisition in
accordance with ASC Topic 805, whereby the purchase price paid is allocated to the tangible and identifiable intangible assets
acquired and liabilities assumed from Western based on their estimated fair values as of the closing date.  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">During fiscal year 2010, we incurred $701 of
transaction related costs which have been recorded in General and administrative expenses in the Consolidated Statement of Earnings.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The table shown below reflects the final purchase
price allocation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 9pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center">Amounts</td><td> </td>
<td colspan="3" style="text-align: center">Measurement</td><td> </td>
<td colspan="3" style="text-align: center">Amounts at</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: center">Previously</td><td> </td>
<td colspan="3" style="text-align: center">Period</td><td> </td>
<td colspan="3" style="text-align: center">September 28,</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Recognized1</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Adjustments</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2011</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 46%; text-align: left">Current assets</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">3,310</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">3,310</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Property and equipment, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,874</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,874</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Investments, including marketable securities held by consolidated affiliated partnerships</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,037</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,037</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Goodwill2 	</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,256</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,230</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,026</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Intangible assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,880</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,880</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">Other assets2 	</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">586</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">77</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">663</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">   Total assets acquired</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">42,943</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,153</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">41,790</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Current liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,966</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,966</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Debt</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,595</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,595</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Other long-term liabilities2 	</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,787</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,153</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,634</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Redeemable noncontrolling interests of consolidated affiliated partnerships</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,882</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,882</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">Treasury stock</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,246</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,246</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt">   Total liabilities assumed and treasury stock acquired</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">19,984</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,153</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">18,831</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 2.5pt">Net assets acquired</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">22,959</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">22,959</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="font-size: 2pt; text-align: left"> </td><td style="font-size: 2pt"> </td>
<td style="font-size: 2pt; text-align: left"> </td><td style="font-size: 2pt; text-align: right"> </td><td style="font-size: 2pt; text-align: left"> </td><td style="font-size: 2pt"> </td>
<td style="font-size: 2pt; text-align: left"> </td><td style="font-size: 2pt; text-align: right"> </td><td style="font-size: 2pt; text-align: left"> </td><td style="font-size: 2pt"> </td>
<td style="font-size: 2pt; text-align: left"> </td><td style="font-size: 2pt; text-align: right"> </td><td style="font-size: 2pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: left"><sup>1</sup> Amounts reported in the notes to
consolidated financial statements included in our Annual Report on Form 10-K for the year ended September 29, 2010.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: left"><sup>2</sup> The adjustment related to valuation
of income tax assets and liabilities determined after the filing of the final Western income tax return during the second quarter
of fiscal year 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The goodwill and intangible assets generated
from the merger is a result of the excess purchase price over the net fair value of the assets and liabilities acquired. We expect
goodwill of approximately $942 to be deductible for tax purposes. Goodwill in the amount of $13,026 has been recorded in the Restaurant
Operations segment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i>Pro Forma Information</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The following unaudited pro forma combined
results of operations give effect to the acquisitions of Western and Biglari Capital as if they had occurred at the beginning of
the periods presented. The unaudited pro forma combined results of operations do not purport to represent our consolidated earnings
had the acquisitions occurred on the dates assumed, nor are these results necessarily indicative of the Company’s future
consolidated results of operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">September 29, 2010</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">September 30, 2009</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(52 weeks)</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(53 weeks)</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 56%; text-align: left">Net revenues</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">683,518</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">646,811</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Net earnings</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">28,198</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">5,365</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Basic earnings per share</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">20.25</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3.96</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left">Diluted earnings per share</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">20.13</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3.94</td><td style="text-align: left"> </td></tr>
</table>
<p style="margin: 0pt; text-align: left"></p>
<p style="margin: 0pt; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Steak n Shake recorded pre-tax asset impairment
and provision for restaurant closings during fiscal years 2011, 2010 and 2009 of $1,032, $353 and $2,645, respectively. Fiscal
year 2009 included $1,274 related to an adjustment to record the related assets for previously closed units at the lower of their
carrying values or fair values less cost.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">No company-operated restaurants were closed
in fiscal years 2011 and 2010. During fiscal year 2009 four restaurants were closed. All of the restaurants closed in fiscal year
2009 were located near other company-operated stores that continue to operate. Therefore, the results of operations of these restaurants
are not presented as discontinued operations and continue to be included in continuing operations in the Consolidated Statement
of Earnings.</p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Investments consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="3" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">2010</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%">Cost</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td colspan="2" style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">124,140</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">34,412</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%">Gross unrealized gains</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">1,956</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">657</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%">Gross unrealized losses</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">(10,775</td>
<td style="vertical-align: bottom; padding-right: -0.1in; line-height: 115%; font-weight: bold">)</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">(2,546</td>
<td style="vertical-align: bottom; line-height: 115%">)</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%">Fair value</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td colspan="2" style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">115,321</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; line-height: 115%; text-align: right">32,523</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Unrealized losses of marketable equity securities
at September 28, 2011 relate to securities that have been in an unrealized loss position for less than 12 months. A majority of
the gross unrealized losses for fiscal year 2011 were due to one investment. We consider several factors in determining other-than-temporary
impairment losses including the current and long-term business prospects of these issuers, the length of time and relative magnitude
of the price decline and our ability and intent to hold the investment until the price recovers.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Investment gains/losses are recognized when
investments are sold (as determined on a specific identification basis) or as otherwise required by GAAP. The timing of realized
gains and losses from sales can have a material effect on periodic earnings. However, such realized gains or losses usually have
little, if any, impact on total Shareholders’ equity because the investments are carried at fair value with any unrealized
gains/losses included as a component of Accumulated other comprehensive income in Shareholders’ equity.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Realized investment gains/losses for the years
ended September 28, 2011, September 29, 2010 and September 30, 2009 were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2010</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2009</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 46%">Gross realized gains on sales</td><td style="width: 5%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 11%; font-weight: bold; text-align: right">7,775</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">3,810</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">9</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td>Gross realized losses on sales</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">(415</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(8</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">From time to time, the Company enters into
certain derivative transactions as part of its investment strategy. In accordance with FASB ASC 815, <i>Accounting for Derivative
Instruments and Hedging Activities</i>, these derivatives are marked to market for each reporting period and this fair value adjustment
is recorded as a gain or loss in the Consolidated Statement of Earnings. We believe that realized investment gains/losses are often
meaningless in terms of understanding reported results. Short term investment gains/losses have caused and may continue to cause
significant volatility in our results.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The Company has entered into short sales
on certain equity securities, that is, a transaction in which the Company sells securities it does not own. The
Company’s use of short sales involves the risk that the price of the security in the open market may be higher when it
is purchased in order to close out the Company’s short position, resulting in a loss to the Company. Such a loss is
theoretically limitless because there are no restrictions on the potential increase in the price of a security, or any
guarantee as to the price at which the Company would be able to purchase the security in the open market. Securities
sold in short sale transactions and the interest and dividends payable on such securities, if any, are reflected as a
liability in Accrued expenses in the Consolidated Balance Sheet. As of September 28, 2011 and September 29, 2010 we had
no outstanding short sales.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">For the year ended September 28, 2011, the
Company recorded investment gains of $610 related to the change in fair value of derivatives and securities sold short. For the
year ended September 29, 2010, the Company recorded investment gains from marking derivatives to market of $222.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Collectively, The Lion Fund L.P., Western Acquisitions, L.P., Mustang
Capital Partners I, L.P. and Mustang Capital Partners II, L.P. are referred to as consolidated affiliated partnerships of the Company.
Investments held directly by the consolidated affiliated partnerships usually consist of domestic equity securities. Certain of
the consolidated affiliated partnerships hold the Company’s common stock as investments. In our consolidated financial statements,
the Company classifies this common stock as Treasury stock despite the shares being legally outstanding. As stated in Note 2, certain
of the consolidated affiliated partnerships held the Company’s Debentures as investments. These Debentures were redeemed
by the Company on March 30, 2011. Refer to Note 15 for further information. As of September 28, 2011 and September 29, 2010, the
consolidated affiliated partnerships held 205,743 shares of the Company’s common stock ($69,221 at cost) and $0 and $7,540
of Debentures, respectively.  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Consolidated net earnings of the Company include the realized and
unrealized appreciation and depreciation of the investments held by consolidated affiliated partnerships, other than realized and
unrealized appreciation and depreciation of investments the consolidated affiliated partnerships hold in the Company’s debt
and equity securities which has been eliminated in consolidation. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Throughout fiscal year 2010, Biglari Holdings invested a total of
$35,697 in the Lion Fund, both in the form of the acquisition of the general partner and as a direct limited partner investment. The
fair value of these investments in the Lion Fund totaled $38,455 at September 28, 2011. No amounts were invested in 2011. These
investments in the Lion Fund do not appear explicitly in the Company’s Consolidated Balance Sheet because of the requirement
to consolidate fully the Lion Fund (inclusive of third party interests) in the Company’s financial statements. Further,
the Lion Fund’s portfolio holds significant interests in Biglari Holdings’ common stock, which as described above is
classified on the Company’s Consolidated Balance Sheet as a reduction to Shareholders’ equity. Biglari Holdings’
pro-rata ownership of its Company common stock through the Lion Fund was 99,792 shares of stock (with a fair value of $29,577)
based on Biglari Holdings’ ownership interest in the Lion Fund on September 28, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">During the first quarter of fiscal year 2011, Mustang Capital Partners
I, L.P. and Mustang Capital Partners II, L.P. were liquidated, and the funds distributed to the partners. During the third quarter
of fiscal year 2011, Western Mustang Holdings, L.L.C. sold its interests in Mustang Capital Management, L.L.C. and Mustang Capital
Advisors, L.P. As a result of the sale, we recorded a gain of $1,559 in which almost all of the gain was non-cash in Other operating
income in the Consolidated Statement of Earnings.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">As a result of the sale, the Company will not have involvement in
the operations of Mustang Capital Management, L.L.C. and Mustang Capital Advisors, L.P. Although these entities meet the definition
of “discontinued operations,” as defined in FASB ASC paragraph 205-20-45-1, <i>Reporting Discontinued Operations</i>
(“ASC paragraph 205-20-45-1”), we have not separated the results of operations because the amounts are immaterial to
our consolidated financial numbers. Net earnings after tax related to the entities was approximately $2,606 and $621 for the year-to-date
periods ended September 28, 2011 and September 29, 2010, respectively, including $1,246 and $192, respectively that is attributable
to noncontrolling interests. The after-tax income for the year-to-date period ended September 28, 2011 includes the aforementioned
gain on sale of $1,559.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
 </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The following table summarizes the cost and fair value of the investments
held by the consolidated affiliated partnerships, other than holdings of the Company’s debt and equity securities:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1pt; font-weight: bold"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; font-weight: bold; text-align: center">2011</td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center">2010</td></tr>
<tr style="vertical-align: bottom">
<td>Equity securities:</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-indent: 7.9pt">Cost</td>
<td style="width: 8%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold">$</td>
<td style="width: 12%; font-weight: bold; text-align: right">19,122</td>
<td style="width: 1%; font-weight: bold"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%">$</td>
<td style="width: 12%; text-align: right">14,725</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: 7.9pt">Fair value</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold">$</td>
<td style="font-weight: bold; text-align: right">18,783</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">15,627</td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Investments held by consolidated affiliated partnerships on the
Consolidated Balance Sheet includes $0 and $7,870 of cash and cash equivalents that are only available for use by the consolidated
affiliated partnerships at September 28, 2011 and September 29, 2010, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Realized investment gains/losses arise when investments are sold
(as determined on a specific identification basis). The gross unrealized gains/losses and net realized gains/losses from investments
held by consolidated affiliated partnerships, other than holdings of the Company’s debt and equity securities, were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1pt; font-weight: bold"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; font-weight: bold; text-align: center">For the years ended</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 2pt; text-align: center"> </td>
<td style="font-size: 2pt; font-weight: bold"> </td>
<td colspan="7" style="font-size: 2pt; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; font-weight: bold; text-align: center">September 28, 2011</td>
<td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; text-align: center"> </td>
<td style="border-bottom: black 1pt solid; text-align: center">September 29, 2010</td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%">Gross unrealized gains</td>
<td style="width: 8%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold">$</td>
<td style="width: 12%; font-weight: bold; text-align: right">1,317</td>
<td style="width: 1%; font-weight: bold"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%">$</td>
<td style="width: 12%; text-align: right">1,499</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td>Gross unrealized losses</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold">$</td>
<td style="font-weight: bold; text-align: right">(1,547</td>
<td style="font-weight: bold">)</td>
<td> </td>
<td>$</td>
<td style="text-align: right">(493</td>
<td>)</td></tr>
<tr style="vertical-align: bottom">
<td>Net realized gains/losses from sale</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold">$</td>
<td style="font-weight: bold; text-align: right">3,365</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">831</td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The limited partners of each of the investment funds have the ability
to redeem their capital upon certain occurrences; therefore, the ownership of the investment funds held by the limited partners
is presented as Redeemable noncontrolling interests of consolidated affiliated partnerships and measured at the greater of carrying
value or fair value on the accompanying Consolidated Balance Sheet. The maximum redemption amount of the redeemable noncontrolling
interests as of September 28, 2011 is $45,252.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The following is a reconciliation of the redeemable noncontrolling
interests in the consolidated affiliated partnerships.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr>
<td style="vertical-align: top; width: 56%; padding-bottom: 1pt; text-align: center"> </td>
<td style="vertical-align: top; width: 8%; padding-bottom: 1pt; font-weight: bold; text-align: center"> </td>
<td style="vertical-align: top; width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: center"> </td>
<td style="vertical-align: top; width: 12%; border-bottom: black 1pt solid; font-weight: bold; text-align: center">2011</td>
<td style="vertical-align: top; width: 1%; padding-bottom: 1pt; text-align: center"> </td>
<td style="vertical-align: top; width: 8%; padding-bottom: 1pt"> </td>
<td style="vertical-align: top; width: 1%; padding-bottom: 1pt; text-align: right"> </td>
<td style="vertical-align: top; width: 12%; border-bottom: black 1pt solid; text-align: center">2010</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td>Carrying value at beginning of year</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold">$</td>
<td style="font-weight: bold; text-align: right">62,245</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">60,075</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td>Contributions from noncontrolling interests</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: right">1,780</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td> </td>
<td style="text-align: right">1,878</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td>Distributions to noncontrolling interests</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: right">(17,499</td>
<td style="font-weight: bold">)</td>
<td> </td>
<td> </td>
<td style="text-align: right">(1,025</td>
<td>)</td></tr>
<tr style="vertical-align: bottom">
<td>Incentive fee</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: right">(2,510</td>
<td style="font-weight: bold">)</td>
<td> </td>
<td> </td>
<td style="text-align: right">—  </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td>Income / loss allocation</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: right">1,909</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td> </td>
<td style="text-align: right">1,317</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt">Other</td>
<td style="padding-bottom: 1pt; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; font-weight: bold; text-align: right">(673</td>
<td style="padding-bottom: 1pt; font-weight: bold">)</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right">—  </td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt">Carrying value at end of year</td>
<td style="padding-bottom: 2.5pt; font-weight: bold"> </td>
<td style="border-bottom: black 2.25pt double; font-weight: bold">$</td>
<td style="border-bottom: black 2.25pt double; font-weight: bold; text-align: right">45,252</td>
<td style="padding-bottom: 2.5pt; font-weight: bold"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">62,245</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company, through its ownership of Biglari Capital and Western
Investments Inc., is entitled to an incentive fee to the extent investment performance of the consolidated affiliated partnerships
exceeds specified hurdle rates. Any such fee is included in net earnings attributable to the Company in the period the fee is earned.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Biglari Capital, the general partner of the Lion Fund, earned a
$5,199 incentive reallocation fee; however, $2,689 is eliminated, for that amount represents the Company’s fee as a limited
partner, which is uncharged because the Company owns the general partner. The remaining $2,510 is an incentive fee that is charged
and reallocated from outside limited partners of the Lion Fund. The incentive fee is assessed only once a year in the calendar
year end quarter, and no predictability of such earnings exists because the Lion Fund annual performance is unpredictable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Net earnings attributable to the Company only includes the Company’s
share of earnings and losses related to our investments in the consolidated affiliated partnerships; all other earnings or losses
from the consolidated affiliated partnerships are allocated to the redeemable noncontrolling interests.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the first quarter of fiscal year 2011,
Mustang Capital Partners I, L.P. and Mustang Capital Partners II, L.P. were liquidated, and their funds were distributed to the
partners. The distribution of $15,660, including $1,421 of noncash distributions, is noted in the Distributions to noncontrolling
interests line in the above reconciliation.<b><i> </i> </b></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Assets held for sale are composed of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2010</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 56%; padding-left: 4.3pt">Land and buildings</td><td style="width: 8%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 12%; font-weight: bold; text-align: right">6,262</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">8,789</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt; padding-left: 4.3pt">Improvements</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">608</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">822</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 2.5pt; padding-left: 4.3pt">Total assets held for sale</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">6,870</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">9,611</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The fiscal year 2011 balances included the
following assets: one office building, four restaurants, and eight parcels of land. In fiscal year 2011, one parcel of land was
sold and one restaurant was subleased.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The fiscal year 2010 balances included assets
related to one office, five restaurants, and nine parcels of land. During fiscal year 2010, we sold two restaurants that were held
for sale as of September 30, 2009. Additionally, we reclassified one restaurant and five parcels of land as long term assets (Property
and equipment) because we were no longer actively marketing them for sale.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The Company expects to sell these properties
within the next 12 months. For assets that are not sold within the next 12 months, management expects to classify them as long
term.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other current assets primarily include prepaid
rent, prepaid contractual obligations and current portion of capitalized loan acquisition costs.</p>
<p style="margin: 0"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment is composed of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; text-align: center">2010</td>
<td style="line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 4.3pt; line-height: 115%">Land</td>
<td style="line-height: 115%; text-align: center"></td>
<td style="line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="line-height: 115%; font-weight: bold; text-align: right">161,339</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: right; vertical-align: bottom">$</td>
<td style="line-height: 115%; text-align: right; vertical-align: bottom">158,526</td>
<td style="line-height: 115%; text-align: right"> </td></tr>
<tr style="vertical-align: top">
<td style="width: 79%; padding-left: 4.3pt; line-height: 115%">Buildings</td>
<td style="width: 1%; line-height: 115%; text-align: center"> </td>
<td style="width: 1%; line-height: 115%; font-weight: bold"> </td>
<td style="width: 8%; line-height: 115%; font-weight: bold; text-align: right">149,444</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: center"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 7%; line-height: 115%; text-align: right">148,718</td>
<td style="width: 1%; line-height: 115%; text-align: right"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 4.3pt; line-height: 115%">Land and leasehold improvements</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right">153,731</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">155,166</td>
<td style="line-height: 115%; text-align: right"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 4.3pt; line-height: 115%">Equipment</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right">202,933</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">203,757</td>
<td style="line-height: 115%; text-align: right"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 4.3pt; line-height: 115%">Construction in progress</td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; font-weight: bold; text-align: right"> 1,850</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; text-align: right"> 1,261</td>
<td style="line-height: 115%; text-align: right"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 4.3pt; line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; font-weight: bold; text-align: right"> 669,297</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="line-height: 115%; text-align: right"> 667,428</td>
<td style="line-height: 115%; text-align: right"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 4.3pt; line-height: 115%">Less accumulated depreciation and amortization</td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; font-weight: bold; text-align: right">(297,561</td>
<td style="line-height: 115%; font-weight: bold">)</td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; text-align: right"> (281,247</td>
<td style="line-height: 115%; text-align: center">)</td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 4.3pt; line-height: 115%">Property and equipment, net</td>
<td style="line-height: 115%; text-align: center"></td>
<td style="border-bottom: windowtext 2.25pt double; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; line-height: 115%; font-weight: bold; text-align: right">371,736</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 2.25pt double; line-height: 115%; text-align: right; vertical-align: bottom">$</td>
<td style="border-bottom: windowtext 2.25pt double; line-height: 115%; text-align: right; vertical-align: bottom">386,181</td>
<td style="line-height: 115%; text-align: right"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><br style="mso-special-character: line-break" />
</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation and amortization expense for property
and equipment for fiscal 2011, 2010, and 2009 was $25,169, $26,373, and $29,058, respectively.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Goodwill</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Goodwill consists of the excess of the purchase
price over the fair value of the net assets acquired in connection with business acquisitions. The carrying value of goodwill decreased
from September 29, 2010 by $1,230 due to the final purchase price adjustment relating to the Western acquisition. Refer to Note
2 for detail of the adjustments impacting goodwill.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">A reconciliation of the change in the carrying
value of goodwill is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2010</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 56%; padding-left: 4.3pt">Balance at beginning of year</td><td style="width: 8%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 12%; font-weight: bold; text-align: right">28,759</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">14,503</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-left: 4.3pt">Acquisition of Western</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,256</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt; padding-left: 4.3pt">Purchase price allocation adjustment</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(1,230</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 2.5pt; padding-left: 4.3pt">Balance at end of year</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">27,529</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">28,759</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">We are required to assess goodwill and any
indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate impairment may have occurred.
The analysis of potential impairment of goodwill requires a two-step approach. The first step is the estimation of fair value of
each reporting unit. If step one indicates that impairment potentially exists, the second step is performed to measure the amount
of impairment, if any. Goodwill impairment exists when the estimated fair value of goodwill is less than its carrying value.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">During the fourth quarter of the fiscal year,
we perform our annual assessment of the recoverability of our goodwill related to four reporting units. During the second quarter
of the fiscal year, we perform our annual assessment of our recoverability of goodwill related to two reporting units. The valuation
methodology and underlying financial information included in our determination of fair value require significant judgments to be
made by management. We use both market and income approaches to derive fair value. The judgments in these two approaches include,
but are not limited to, comparable market multiples, long-term projections of future financial performance, and the selection of
appropriate discount rates used to determine the present value of future cash flows. Changes in such estimates or the application
of alternative assumptions could produce significantly different results. No potential impairment was identified for our reporting
units during fiscal years 2011, 2010, or 2009.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Other Intangibles</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Other intangibles are composed of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="10" style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="10" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">2010</td></tr>
<tr>
<td style="vertical-align: top; line-height: 115%; font-size: 1pt"> </td>
<td style="vertical-align: top; line-height: 115%; font-size: 1pt"> </td>
<td colspan="10" style="vertical-align: top; line-height: 115%; font-size: 1pt; font-weight: bold; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; font-size: 1pt; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; font-size: 1pt; text-align: center"> </td>
<td colspan="10" style="vertical-align: bottom; line-height: 115%; font-size: 1pt; text-align: center"> </td></tr>
<tr>
<td style="vertical-align: top; padding-left: 9pt; line-height: 115%; text-indent: -9pt"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">Gross carrying amount</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">Accumulated amortization</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">Total</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">Gross carrying amount</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">Accumulated amortization</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">Total</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Right to operate</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> $</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">1,480</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="text-align: right; padding-right: 0.7pt; line-height: 115%; font-weight: bold; vertical-align: top">$</td>
<td style="text-align: right; padding-right: 0.7pt; line-height: 115%; font-weight: bold; vertical-align: top">(1,117)</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">363</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: left">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">1,480</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">(999</td>
<td style="vertical-align: top; line-height: 115%">)</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">481</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Franchise agreement</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">5,310</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="width: 29px; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">(797</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">)</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">4,513</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">5,310</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="width: 18px; vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">(266</td>
<td style="vertical-align: top; line-height: 115%">)</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">5,044</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Other</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">810</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">(480</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">)</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">330</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">1,136</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">(446</td>
<td style="vertical-align: top; line-height: 115%">)</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">690</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Total</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">7,600</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">(2,394</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">)</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">5,206</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">7,926</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">(1,711</td>
<td style="vertical-align: top; line-height: 115%">)</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">6,215</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Intangible assets with indefinite lives</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">1,744</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">—</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">1,744</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">1,744</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">1,744</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Total intangible assets</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">9,344</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">(2,394</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">)</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">6,950</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: left">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">9,670</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">(1,711</td>
<td style="vertical-align: top; line-height: 115%">)</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">7,959</td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Intangible assets subject to
amortization consist of franchise agreements acquired in connection with the acquisition of Western, a right to operate and
favorable leases acquired in connection with prior acquisitions and are being amortized over their estimated weighted average
useful lives ranging from eight to twelve years. In connection with the sale of Mustang Capital Management, L.L.C. and
Mustang Capital Advisors, L.P. during the third quarter of fiscal year 2011, we disposed of an intangible asset relating to
certain customer relationships with a gross carrying value and net basis at the time of disposal of $326 and $266,
respectively. Such amount was included in the determination of the net gain on sale of the entities as further discussed in
Note 2.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Amortization expense for fiscal years 2011,
2010, and 2009 was $742, $487, and $198, respectively. Total annual amortization expense for each of the next five years will approximate
$650.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Intangible assets with indefinite lives consist
of a trade name acquired in connection with the acquisition of Western and reacquired franchise rights acquired in connection with
previous acquisitions.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other assets primarily include capitalized
software, non-qualified plan investments, non-current portion of capitalized loan acquisition costs, and a note receivable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accrued expenses include the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; text-align: center">2010</td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 4.3pt; line-height: 115%">Salaries, wages, vacation, and severance</td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">$15,340</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="padding-right: 0.7pt; line-height: 115%; text-align: right">$14,260</td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 4.3pt; line-height: 115%">Taxes payable</td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">16,656</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="padding-right: 0.7pt; line-height: 115%; text-align: right">13,185</td></tr>
<tr style="vertical-align: top">
<td style="width: 85%; padding-left: 4.3pt; line-height: 115%">Insurance accruals</td>
<td style="width: 1%; line-height: 115%; text-align: center"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 5%; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">7,511</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%; text-align: center"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 5%; padding-right: 0.7pt; line-height: 115%; text-align: right">5,908</td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 4.3pt; line-height: 115%">Other</td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> 7,441</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 0.7pt; line-height: 115%; text-align: right"> 4,048</td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 4.3pt; line-height: 115%">Total accrued expenses</td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 2.25pt double; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">$46,948</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 2.25pt double; padding-right: 0.7pt; line-height: 115%; text-align: right">$37,401</td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other long-term liabilities include deferred
rent expense, non-qualified plan obligations, deferred gain on sale-leaseback transactions, uncertain tax positions, and deferred
compensation.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The components of the provision for income
taxes consist of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">2011</td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: center">2010</td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: center">2009</td>
<td style="text-align: center"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.5pt">Current:</td>
<td style="vertical-align: top; text-align: center"> </td>
<td colspan="2" style="vertical-align: top; text-align: right"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td colspan="2" style="vertical-align: top; padding-right: 0.7pt"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td colspan="2" style="vertical-align: top; text-align: right"> </td>
<td style="vertical-align: top"> </td></tr>
<tr>
<td style="width: 62%; vertical-align: bottom; padding-left: 4.3pt">Federal</td>
<td style="width: 1%; vertical-align: top; text-align: center"> </td>
<td style="width: 3%; vertical-align: top; font-weight: bold">$</td>
<td style="width: 9%; vertical-align: bottom; padding-right: 0.7pt; font-weight: bold; text-align: right">13,217</td>
<td style="width: 1%; vertical-align: bottom; font-weight: bold"> </td>
<td style="width: 1%; vertical-align: top; text-align: center"> </td>
<td style="width: 1%; vertical-align: top">$</td>
<td style="width: 10%; vertical-align: bottom; padding-right: 0.7pt; text-align: right">10,212</td>
<td style="width: 1%; vertical-align: bottom"> </td>
<td style="width: 1%; vertical-align: top; text-align: center"> </td>
<td style="width: 1%; vertical-align: top">$</td>
<td style="width: 8%; vertical-align: bottom; text-align: right">(4,875</td>
<td style="width: 1%; vertical-align: bottom">)</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt">State</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; font-weight: bold; text-align: right">2,836</td>
<td style="vertical-align: bottom; font-weight: bold"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; text-align: right">1,600</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; text-align: right">(419</td>
<td style="vertical-align: bottom">)</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt">Deferred</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.7pt; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.7pt; font-weight: bold; text-align: right">(2,186</td>
<td style="vertical-align: bottom; font-weight: bold">)</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.7pt; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.7pt; text-align: right">207</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right">6,457</td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt">Total income taxes</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: top; padding-right: 0.7pt; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: top; padding-right: 0.7pt; font-weight: bold; text-align: right">13,867</td>
<td style="vertical-align: bottom; font-weight: bold"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: top; padding-right: 0.7pt; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: top; padding-right: 0.7pt; text-align: right">12,019</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: top; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: top; text-align: right">1,163</td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top; padding-right: 0.7pt; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; padding-right: 0.7pt; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; font-weight: bold"> </td>
<td style="vertical-align: bottom; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; padding-right: 0.7pt; text-align: right"> </td>
<td style="vertical-align: top; padding-right: 0.7pt; text-align: right"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top; text-align: right"> </td>
<td style="vertical-align: top; text-align: right"> </td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt">Reconciliation of effective income tax:</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; font-weight: bold"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; text-align: right"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; text-align: right"> </td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt">Tax at U.S. statutory rates (35%)</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top; font-weight: bold">$</td>
<td style="vertical-align: bottom; padding-right: 0.7pt; font-weight: bold; text-align: right">16,741</td>
<td style="vertical-align: bottom; font-weight: bold"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top">$</td>
<td style="vertical-align: bottom; padding-right: 0.7pt; text-align: right">14,504</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top">$</td>
<td style="vertical-align: bottom; text-align: right">2,517</td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt">State income taxes, net of federal benefit</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; font-weight: bold; text-align: right">1,410</td>
<td style="vertical-align: bottom; font-weight: bold"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; text-align: right">1,463</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; text-align: right">615</td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt">Federal income tax credits</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; font-weight: bold; text-align: right">(4,307</td>
<td style="vertical-align: bottom; font-weight: bold">)</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; text-align: right">(4,146</td>
<td style="vertical-align: bottom">) </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; text-align: right">(2,339</td>
<td style="vertical-align: bottom">)</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt">Share-based payments</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; font-weight: bold; text-align: right">68</td>
<td style="vertical-align: bottom; font-weight: bold"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; text-align: right">189</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; text-align: right">289</td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt">Other</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.7pt; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.7pt; font-weight: bold; text-align: right">(45</td>
<td style="vertical-align: bottom; font-weight: bold">)</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.7pt; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.7pt; text-align: right">9</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; text-align: right">81</td>
<td style="vertical-align: bottom"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt">Total income taxes</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 0.7pt; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 0.7pt; font-weight: bold; text-align: right">13,867</td>
<td style="vertical-align: bottom; font-weight: bold"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: top; padding-right: 0.7pt; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: top; padding-right: 0.7pt; text-align: right">12,019</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: top; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: top; text-align: right">1,163</td>
<td style="vertical-align: bottom"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Income taxes paid totaled $12,436 in fiscal
year 2011, $9,878 in fiscal year 2010, and $987 in fiscal year 2009. Income tax refunds totaled $2,856 in fiscal year 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">As of September 28, 2011, we had approximately
$1,750 of unrecognized tax benefits, including approximately $270 of interest and penalties, which are included in Other long-term
liabilities in the Consolidated Balance Sheet. During fiscal year 2011, we recognized approximately $92 in potential interest and
penalties associated with uncertain tax positions. Our continuing practice is to recognize interest expense and penalties related
to income tax matters in Income tax expense. Of the $1,750 of unrecognized tax benefits, $1,153 would impact the effective income
tax rate if recognized.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The following table summarizes the Company’s
unrecognized tax benefits, excluding interest and penalties:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="3" style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%; text-align: left">September 24, 2008</td>
<td style="vertical-align: top; line-height: 115%; text-align: left"></td>
<td style="vertical-align: bottom; line-height: 115%; text-align: left"> $</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">773</td>
<td style="vertical-align: bottom; line-height: 115%"> </td></tr>
<tr>
<td style="width: 87%; vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Gross increases – prior period tax positions</td>
<td style="width: 2%; vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="width: 2%; vertical-align: bottom; line-height: 115%"> </td>
<td style="width: 8%; vertical-align: bottom; line-height: 115%; text-align: right">439</td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Lapse of statute of limitations</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> (7</td>
<td style="vertical-align: bottom; line-height: 115%">)</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">September 30, 2009</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> 1,205</td>
<td style="vertical-align: bottom; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Gross increases – prior period tax positions 	</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: right">281</td>
<td style="vertical-align: bottom; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Lapse of statute of limitations 	</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: right">(251</td>
<td style="vertical-align: bottom; line-height: 115%">)</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">September 29, 2010 	</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> 1,235</td>
<td style="vertical-align: bottom; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%; font-weight: bold">Gross increases – current period tax positions</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> 178</td>
<td style="vertical-align: bottom; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%; font-weight: bold">Gross increases – prior period tax positions</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">238</td>
<td style="vertical-align: bottom; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%; font-weight: bold">Lapse of statute of limitations</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> (171</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">)</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%; font-weight: bold">September 28, 2011</td>
<td style="vertical-align: top; line-height: 115%"></td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">1,480</td>
<td style="vertical-align: bottom; line-height: 115%"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">We file income tax returns which are periodically
audited by various federal, state, and local jurisdictions. With few exceptions, we are no longer subject to federal, state, and
local tax examinations for fiscal years prior to 2006. We believe we have certain state income tax exposures related to fiscal
years 2006 through 2011. Due to the expiration of the various state statutes of limitations for these fiscal years, it is possible
that the total amount of unrecognized tax benefits will decrease by approximately $1,086 within 12 months. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Deferred tax assets and liabilities are determined
based on differences between financial reporting and tax basis of assets and liabilities and are measured using the currently enacted
tax rates and laws that will be in effect when the differences are expected to reverse. Our deferred tax assets and liabilities
consist of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">2010</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="font: 11pt/115% Calibri, Halvetica, Sans-Serif"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Deferred tax assets:</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Insurance reserves</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">2,539</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">1,639</td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Share-based payments</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">330</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">676</td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Compensation accruals</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">1,645</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">882</td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Gift card accruals</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">561</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">619</td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">State net operating loss credit carryforward</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">107</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">518</td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Investments</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">3,603</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">— </td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Other</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> 1,724</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> 1,650</td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Total deferred tax assets</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> 10,509</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> 5,984</td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Deferred tax liabilities:</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Fixed asset basis difference</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">7,833</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">9,484</td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Goodwill and intangibles</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">3,190</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">2,280</td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Other</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> —</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">727</td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Total deferred tax liabilities</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> 11,023</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> 12,491</td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Net deferred tax liability</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> (514</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold">)</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: right"> (6,507</td>
<td colspan="2" style="vertical-align: top; line-height: 115%">)</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Less current portion</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> 6,150</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> 3,802</td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Long-term liability</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: left">$ </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">(6,664</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold">)</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: left">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right"> (10,309</td>
<td colspan="2" style="vertical-align: top; line-height: 115%">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> <br style="mso-special-character: line-break" />
</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Receivables on the Consolidated Balance Sheet
include income tax receivables of $1,853 as of September 29, 2010. Accrued expenses on the Consolidated Balance Sheet include income
tax payables of $4,372 as of September 28, 2011.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">We lease certain physical facilities under
non-cancelable lease agreements. Restaurant leases typically have initial terms of 18 to 30 years and renewal terms aggregating
20 years or more. These leases require the payment of real estate taxes, insurance and maintenance costs. Certain leased facilities,
which are no longer operated but are subleased to third parties or franchisees, are classified below as non-operating properties.
Minimum future rental payments for non-operating properties have not been reduced by minimum sublease rentals of $5,082 related
to operating leases receivable under non-cancelable subleases. The property and equipment cost related to the finance obligations
and capital leases as of September 28, 2011 is as follows: $72,941 buildings, $61,663 land, $29,505 land and leasehold improvements,
$566 equipment and $57,566 accumulated depreciation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">At September 28, 2011, obligations under non-cancelable
finance obligations, capital leases, and operating leases (excluding real estate taxes, insurance and maintenance costs) require
the following minimum future rental payments:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="5" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">Operating Leases</td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-size: 1pt"> </td>
<td style="line-height: 115%; font-size: 1pt"> </td>
<td colspan="2" style="line-height: 115%; font-size: 1pt"> </td>
<td style="line-height: 115%; font-size: 1pt"> </td>
<td style="line-height: 115%; font-size: 1pt"> </td>
<td style="line-height: 115%; font-size: 1pt"> </td>
<td style="line-height: 115%; font-size: 1pt"> </td>
<td colspan="2" style="line-height: 115%; font-size: 1pt"> </td>
<td style="line-height: 115%; font-size: 1pt"> </td>
<td colspan="5" style="line-height: 115%; font-size: 1pt"> </td></tr>
<tr>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; font-weight: bold">Year</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">Financial Obligations</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: center">Capital Leases</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">Total</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">Operating Property</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">Non-Operating<br /> Property</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">2012</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">$</td>
<td style="vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">15,241</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">106</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right">$</td>
<td style="vertical-align: top; line-height: 115%; text-align: right">15,347</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right">$</td>
<td style="vertical-align: top; line-height: 115%; text-align: right">12,827</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right">$</td>
<td style="vertical-align: top; line-height: 115%; text-align: right">429</td></tr>
<tr>
<td style="width: 57%; vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">2013</td>
<td style="width: 1%; vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%"> </td>
<td style="width: 6%; vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">16,082</td>
<td style="width: 1%; vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%"> </td>
<td style="width: 6%; vertical-align: bottom; line-height: 115%; text-align: right"> 106</td>
<td style="width: 1%; vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="width: 1%; vertical-align: top; line-height: 115%"> </td>
<td style="width: 6%; vertical-align: bottom; line-height: 115%; text-align: right">16,188</td>
<td style="width: 1%; vertical-align: top; line-height: 115%"> </td>
<td style="width: 1%; vertical-align: top; line-height: 115%"> </td>
<td style="width: 6%; vertical-align: bottom; line-height: 115%; text-align: right">12,473</td>
<td style="width: 1%; vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="width: 1%; vertical-align: top; line-height: 115%"> </td>
<td style="width: 9%; vertical-align: bottom; line-height: 115%; text-align: right">412</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">2014</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">14,288</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> 17</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">14,305</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> 11,540</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">368</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">2015</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">13,496</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> 17</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">13,513</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> 10,683</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">318</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">2016</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">12,394</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> 17</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">12,411</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> 9,601</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">321</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">After 2016</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">23,357</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">32</td>
<td style="border-bottom: white 1pt solid; vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">23,389</td>
<td style="border-bottom: white 1pt solid; vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">66,481</td>
<td style="border-bottom: white 1pt solid; vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">3,136</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Total minimum future rental payments</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">94,858</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">295</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">95,153</td>
<td style="border-bottom: white 1pt solid; vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: top; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: top; line-height: 115%; text-align: right">123,605</td>
<td style="border-bottom: white 1pt solid; vertical-align: top; line-height: 115%; text-align: center"></td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: top; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: top; line-height: 115%; text-align: right">4,984</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Less amount representing interest</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">54,733</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">46</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">54,779</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Total principal obligations under leases</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">40,125</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">  </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">249</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right">40,374</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Less current portion</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">5,186</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">  </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">86</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">5,272</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Non-current principal obligations under leases</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">34,939</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">  </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">163</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right">35,102</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Residual value at end of lease term</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">80,938</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">26</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">80,964</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Obligations under leases</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 1.35pt; line-height: 115%; text-align: right">115,877</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">189</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">116,066</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">During fiscal year 2009, Steak n Shake sold
two restaurants to a third party and simultaneously entered into a lease for each property. In conjunction with the first sale-leaseback
transaction, net proceeds of $2,005 were received. This transaction resulted in a gain of $431, which was deferred and is being
amortized over the life of the lease. The second sale-leaseback generated proceeds of $1,592. The second transaction has been accounted
for as financing and therefore, no gain has been recognized.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">One of the 2009 leases has been classified
as operating. The total of future minimum lease payments to be made under the terms of the sale-leaseback agreement is $26,157.
Minimum lease payments due for fiscal years 2012, 2013, 2014, 2015, 2016, and thereafter are $1,557, $1,582, $1,616, $1,648, $1,674,
and $18,080, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Contingent rent totaling $967 in fiscal year
2011, $749 in fiscal year 2010, and $783 in fiscal year 2009 is recorded in Rent expense in the accompanying Consolidated Statement
of Earnings. </p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Debentures</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">In connection with the acquisition of Western,
the Company issued 14% redeemable subordinated debentures due 2015 (the “Debentures”) in the aggregate principal amount
of $22,959. On March 30, 2011, the Company redeemed all of its outstanding Debentures. The Debentures were redeemed for cash at
an aggregate redemption price of approximately $23,420, representing 100% of the principal amount outstanding, plus accrued and
unpaid interest up to, but not including, March 30, 2011. The</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Debentures were issued and the redemption was
effected pursuant to the provisions of the Indenture, dated March 30, 2010 (the “Indenture”), between the Company and
Wells Fargo Bank, National Association, as trustee. Upon the redemption of the Debentures, the Company’s obligations under
the Debentures and the Indenture were satisfied and discharged in accordance with their terms. Included in the Debentures aggregate
redemption price of $23,420 was approximately $7,804 of principal and interest paid to the Lion Fund. The payment to the Lion Fund
does not appear explicitly in the Company’s Consolidated Statement of Cash Flows because of the requirement to consolidate
fully the Lion Fund in the Company’s financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Steak n Shake New Credit Facility</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">On September 8, 2011, Steak n Shake, as borrower,
Steak n Shake Enterprises, Inc. (“Steak n Shake Enterprises”) and Steak n Shake, LLC, as guarantors (together with
Steak n Shake Enterprises, the “Subsidiary Guarantors”), each subsidiaries of the Company, entered into a credit agreement
(the “New Credit Facility”) with the lenders party thereto and Jefferies Finance LLC, as arranger, book manager, administrative
agent and collateral agent (“Jefferies Finance”). The New Credit Facility consists of an $110,000 senior secured term
loan facility (the “Term Loan”) and a $20,000 senior secured revolving credit facility (the “Revolver”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The Term Loan matures on September 8,
2015 and has a repayment schedule with monthly amortization, beginning on December 31, 2011, equal to 2.5% of the initial
principal amount of the Term Loan (as adjusted pursuant to the New Credit Facility), together with accrued and unpaid
interest on the principal amount to be paid, with the balance due at maturity. The Revolver will be available until September
8, 2014. Interest on the Term Loan is based on a base rate or Eurodollar rate plus an applicable margin of 3.5% and 4.5%,
respectively. Interest on the Revolver is based on a base rate or Eurodollar rate plus an applicable margin ranging from 2.0%
to 2.5% and 3.0% to 3.5%, respectively, based on Steak n Shake’s total leverage ratio. The Revolver also carries a
commitment fee of 0.75% per annum on the unused portion of the credit line.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">As of September 28, 2011, outstanding borrowings
were $110,000 under the Term Loan at an interest rate of 5.5% and $15,000 under the Revolver at an interest rate of 4.5%.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Both the Term Loan and the Revolver have been
guaranteed by the Subsidiary Guarantors and secured by first priority security interests in substantially all the assets of Steak
n Shake (including the capital stock of Steak n Shake Enterprises) and the Subsidiary Guarantors. Biglari Holdings is not
a guarantor under the New Credit Facility. Net proceeds from the New Credit Facility were used to pay the Company a dividend
in the amount of $83,154 and to repay all outstanding amounts under Steak n Shake’s former credit facility. In February 2011,
Steak n Shake amended the former credit agreement and entered into a $20,000 term loan and extended the maturity date of its existing
$30,000 credit facility. Term loan had a maturity date of February 15, 2016.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Outstanding borrowings under Steak n Shake’s
$30,000 credit facility as of September 29, 2010 were $18,000 at an interest rate of 2.5%. We had $4,610 and $522 in standby letters
of credit outstanding as of September 28, 2011 and September 29, 2010, respectively. The facility was paid in full with the proceeds
from the New Credit Facility.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The New Credit Facility includes customary
affirmative and negative covenants and events of default, as well as financial covenants relating to a maximum total leverage ratio
and a minimum consolidated fixed charge coverage ratio.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Steak n Shake was in compliance with all covenants
under the New Credit Facility as of September 28, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Security Agreement</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">In connection with the New Credit Facility,
Steak n Shake and the Subsidiary Guarantors (together with the other guarantors from time to time party thereto, the “Pledgors”)
and Jefferies Finance, in its capacity as collateral agent pursuant to the New Credit Facility, entered into a security agreement
(the “Security Agreement”). Pursuant to the Security Agreement, each Pledgor granted to Jefferies Finance a lien on
all of the Pledged Collateral (as defined in the Security Agreement) as security for the payment and performance in full of all
the secured obligations under the New Credit Facility.  The Pledged Collateral does not include the real estate of Steak
n Shake and the Subsidiary Guarantors, but such real estate is subject to a springing lien if Steak n Shake does not maintain certain
leverage ratios.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Interest Rate Swap</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">During fiscal year 2011, Steak n Shake entered
into an interest rate swap agreement for a notional amount of $20,000, which effectively fixed the interest rate at 3.25% through
February 15, 2016. The notional amount decreases $1,000 quarterly through its maturity on February 15, 2016. The fair value of
the interest rate swap was a loss of $439 on September 28, 2011 and is included in Accrued expenses on the Consolidated Balance
Sheet.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Western Real Estate Loan Agreement and
Note Payable</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Western Real Estate, L.P. (“Western RE”),
a wholly-owned subsidiary of Western, has a promissory note (the “Note”) which is secured by approximately 23 acres
of real property. The principal amount of the Note is $2,293 and the Note bears interest at a rate of 5.0% annually. The Note is
due and payable in consecutive monthly payments of accrued interest only commencing on March 30, 2010. All principal and accrued
interest thereon is due and payable on February 28, 2013. The Note may be prepaid in whole or in part at any time without penalty.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The loan agreement under which the Note was
issued (the “Loan Agreement”) contains various affirmative and negative covenants, limitations and events of default
customary for loans of this type to similar borrowers, including limitations on Western RE’s ability to incur indebtedness
and liens, subject to limited exceptions, and certain financial covenants that must be maintained. Additionally, the Note is not
guaranteed by or an obligation of the parent Company; rather, the Note is guaranteed by Western and its subsidiaries. Western RE
was in compliance with all covenants under the Loan Agreement as of September 28, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Expected principal payments for all outstanding
borrowings, excluding the Revolver, include $11,141 in 2012, $13,417 in 2013, $11,000 in 2014, and $77,000 in 2015.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The carrying amounts for debt reported in the
Consolidated Balance Sheet do not differ materially from their fair values at September 28, 2011 as a result of the recent refinancing.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Interest</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">No interest was capitalized in connection with
financing additions to property and equipment during fiscal years 2011, 2010 and 2009. Interest paid on debt amounted to $2,947
in 2011, $1,274 in 2010, and $2,861 in 2009. Interest paid on obligations under leases was $10,565, $10,697, and $11,010 in 2011,
2010, and 2009, respectively.</p>
<p style="margin: 0pt; text-align: left"></p>
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
April 30, 2010, the Company acquired Biglari Capital pursuant to a Stock Purchase Agreement between the Company and Sardar Biglari,
Chairman and Chief Executive Officer, who was the sole shareholder of Biglari Capital. (Refer to Note 2.)</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
March 30, 2010, the Company, through its wholly-owned subsidiary, Merger Sub, acquired 100% of the outstanding equity interests
of Western. Sardar Biglari, Chairman and Chief Executive Officer, was also Chairman and Chief Executive Officer of Western at
the time of the acquisition. Additionally, at the time of the merger, Mr. Biglari owned shares of Western’s common stock
through his ownership interest in the Lion Fund. (Refer to Note 2.)</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Mr. Biglari, along with his affiliates, and certain
directors of the Company make investments in the Lion Fund (other than the amounts invested by the Company), which are not subject
to special profits, interest allocations, or incentive allocations. However, Mr. Biglari does not pay an incentive allocation
fee as a limited partner in the Lion Fund. As of September 28, 2011 and September 29, 2010, the total fair value of these investments
was approximately $1,997 and $2,119, respectively.</font></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">We maintain stock-based compensation plans
which allow for the issuance of incentive stock options, non-qualified stock options, and restricted stock to officers, other key
employees, and to members of the Board of Directors. We generally use treasury shares to satisfy the issuance of shares under these
stock-based compensation plans. We utilize the fair value recognition provisions of FASB ASC paragraph 718-10-55-10, <i>Fair-Value-Based
Instruments in a Share-Based Transaction</i>. This guidance applies to all awards granted after the effective date and to modifications,
repurchases or cancellations of existing awards. Additionally, under the modified prospective method of adoption, we recognize
compensation expense for the portion of outstanding awards on the adoption date for which the requisite service period has not
yet been rendered based on the grant-date fair value of those awards.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The weighted average fair value of shares granted
during the years ended September 29, 2010 and September 30, 2009 was $158.52 and $33.00, respectively. No shares were granted in
fiscal year 2011. We estimate the fair value of each grant using the Black-Scholes option-pricing model. Expected volatilities
are generally based on historical volatility of our stock. We use historical data to estimate the expected life, and groups of
employees that have similar historical behaviors are considered separately for valuation purposes. The risk-free rate for periods
within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The Black-Scholes
option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and
are fully transferable. In addition, option-pricing models require the input of highly subjective assumptions including the expected
stock price volatility. Because our stock options have characteristics significantly different from those of traded options, changes
in the subjective input assumptions can materially affect the fair value estimate. The fair value estimates are based on the following
weighted average assumptions:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; text-align: center">2010</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; text-align: center">2009</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: top">
<td style="width: 76%; padding-left: 4.3pt; line-height: 115%">Risk-free interest rate</td>
<td style="width: 2%; line-height: 115%; text-align: center"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 7%; border-top: windowtext 1pt solid; line-height: 115%; text-align: right">4.3</td>
<td style="width: 2%; line-height: 115%">%</td>
<td style="width: 1%; line-height: 115%; text-align: center"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 7%; border-top: windowtext 1pt solid; line-height: 115%; text-align: right">4.3</td>
<td style="width: 2%; line-height: 115%">%</td>
<td style="width: 1%; line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 4.3pt; line-height: 115%">Dividend yield</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">0.0</td>
<td style="line-height: 115%">%</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">0.0</td>
<td style="line-height: 115%">%</td>
<td style="line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 4.3pt; line-height: 115%">Expected volatility</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">52.4</td>
<td style="line-height: 115%">%</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">31.8</td>
<td style="line-height: 115%">%</td>
<td style="line-height: 115%; text-align: center"> </td></tr>
<tr style="vertical-align: top">
<td style="padding-left: 4.3pt; line-height: 115%">Expected life in years</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">3.0 years</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">5.0 years</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Restricted Stock Plans</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">On March 7, 2008, our shareholders approved
the 2008 Equity Incentive Plan (the “2008 Plan”). The 2008 Plan provides for grants of stock-based awards for up to
45,000 shares of common stock with a maximum of 35,000 shares which may be issued as restricted stock. These restricted stock awards
are restricted for a period and are forfeited to us if the grantee is not employed (except for reasons of retirement, permanent
disability or death) at the end of the vesting period. Awards of restricted stock are valued at 100% of market value at the date
of grant. The total value of the stock grant is amortized to compensation expense ratably over the vesting period. There are no
shares of restricted stock granted under the 2008 Plan for which restrictions have not lapsed at September 28, 2011. At September
28, 2011, 27,742 shares were reserved for future grants. To date, 11,660 shares have vested under the 2008 Plan.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The total fair value of shares vested during
the years ended September 28, 2011, September 29, 2010, and September 30, 2009, was $657, $768, and $1,149, respectively. The amount
charged to expense under these plans was $51 ($32, net of tax) in 2011, $235 ($143, net of tax) in 2010, and $890 ($543, net of
tax) in 2009. There was no unrecognized compensation cost at September 28, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes the restricted
stock activity under the plans:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table align="center" cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: center">Number<br /> of Shares</td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: center">Weighted<br /> Average<br /> Grant Date<br /> Fair Value</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt">Nonvested shares at September 29, 2010</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top; text-align: right"> </td>
<td style="vertical-align: top; text-align: right">5,388</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: bottom; text-align: right">$</td>
<td style="vertical-align: bottom; text-align: right">143.28</td></tr>
<tr>
<td style="width: 71%; vertical-align: bottom; padding-left: 4.3pt">Granted</td>
<td style="width: 2%; vertical-align: top; text-align: center"> </td>
<td style="width: 3%; vertical-align: top"> </td>
<td style="width: 8%; vertical-align: bottom; text-align: right">—</td>
<td style="width: 2%; vertical-align: top"> </td>
<td style="width: 2%; vertical-align: top; text-align: center"> </td>
<td style="width: 2%; vertical-align: bottom"> </td>
<td style="width: 10%; vertical-align: bottom; text-align: right">—</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt">Forfeitures</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; text-align: right">841</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right">136.02</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt">Vested</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top; border-bottom: windowtext 1pt solid; text-align: right"> </td>
<td style="vertical-align: top; border-bottom: windowtext 1pt solid; text-align: right">4,547</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: right"> </td>
<td style="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: right">144.62</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.3pt">Nonvested shares at September 28, 2011</td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: top; border-bottom: windowtext 2.25pt double; text-align: right"> </td>
<td style="vertical-align: top; border-bottom: windowtext 2.25pt double; text-align: right"> —</td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: center"> </td>
<td style="vertical-align: bottom; border-bottom: windowtext 2.25pt double; text-align: right">$ </td>
<td style="vertical-align: bottom; border-bottom: windowtext 2.25pt double; text-align: right">—</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Employee Stock Option Plans<br />
</i></b>The 2008 Plan also provides for awards in the form of options to purchase shares of common stock. Options granted in 2009
under the 2008 Plan are exercisable as to 20% on each anniversary of the date of grant until fully exercisable. No options were
granted in 2011 or 2010 under the 2008 Plan. Options granted in 2009 were at $200 which exceeded the market price on the date of
grant. Options granted in 2008 under the 2008 Plan are exercisable as to 25% on each anniversary of the date of grant until fully
exercisable. The options expire ten years from the date of the grant and are issued with an exercise price equal to the fair market
value of a share of common stock on the date of grant. Options are granted under the 2008 Plan to officers and key employees selected
by the Governance, Compensation and Nominating Committee of the Board of Directors (the “Compensation Committee”).
As of September 28, 2011, 10,362 options have been granted under the 2008 Plan and 27,742 shares are available for future issuance.
These are the same shares available for future issuance referenced in the Restricted Stock Plan disclosure.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Non-Employee Director Stock Option Plans</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Our Non-Employee Director Stock Option Plans
provide for the grant of non-qualified stock options at a price equal to the fair market value of the common stock on the date
of the grant. Options outstanding under each plan through fiscal year 2005 are exercisable as to 20% on the date of grant and 20%
on each anniversary of the date of grant thereafter until fully exercisable. Options outstanding that were issued in fiscal year
2006 or later are exercisable as to 25% on each anniversary of the date of grant until fully exercisable. The options expire five
years from the date of grant. At September 28, 2011, 10,500 options have been granted under the Non-Employee Director Stock Option
Plans. The Non-Employee Director Stock Option Plans were replaced by the 2008 Plan and as a result, no shares are reserved for
future grants under the Non-Employee Director Stock Option Plans.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The following table summarizes the options
activity under all of our Stock Option Plans:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; text-align: center">Options</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; text-align: center">Weighted<br /> Average<br /> Exercise Price</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; text-align: center">Weighted<br /> Average<br /> Remaining<br /> Contractual Life</td>
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; text-align: center">Aggregate<br /> Intrinsic Value</td></tr>
<tr>
<td style="padding-left: 4.3pt; line-height: 115%">Outstanding at September 29, 2010</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; text-align: right"> 22,887</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center">$</td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: right"> 274.75</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="width: 50%; padding-left: 4.3pt; line-height: 115%">Granted</td>
<td style="width: 1%; vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="width: 1%; vertical-align: top; line-height: 115%"> </td>
<td style="width: 6%; vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="width: 1%; vertical-align: top; line-height: 115%"> </td>
<td style="width: 1%; vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%"> </td>
<td style="width: 7%; vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="width: 1%; vertical-align: top; line-height: 115%"> </td>
<td style="width: 1%; vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="width: 1%; vertical-align: top; line-height: 115%"> </td>
<td style="width: 8%; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; vertical-align: top; line-height: 115%"> </td>
<td style="width: 1%; vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="width: 2%; vertical-align: bottom; line-height: 115%"> </td>
<td style="width: 5%; vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="padding-left: 4.3pt; line-height: 115%">Exercised</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">(4,383</td>
<td style="vertical-align: bottom; line-height: 115%">)</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">243.67</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="padding-left: 4.3pt; line-height: 115%">Canceled or forfeited</td>
<td style="border-bottom: white 1pt solid; vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> (4,925</td>
<td style="vertical-align: bottom; line-height: 115%">)</td>
<td style="border-bottom: white 1pt solid; vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> 281.11</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="padding-left: 4.3pt; line-height: 115%">Outstanding at September 28, 2011</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; text-align: right"> 13,579</td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: right"> 282.44</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">4.48 years</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">757</td></tr>
<tr>
<td style="padding-left: 4.3pt; line-height: 115%">Vested or expected to vest at September 28, 2011</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">12,780</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">285.18</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">4.54 years</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">686</td></tr>
<tr>
<td style="padding-left: 4.3pt; line-height: 115%">Exercisable at September 28, 2011</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">11,629</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">303.41</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">4.25 years</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">548</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">During fiscal years 2011, 2010, and
2009, $218 ($210, net of tax), $592 ($570, net of tax), and $758 ($714, net of tax), respectively, was charged to expense
related to the stock option plans. The total intrinsic value of options exercised during the years ended September 28, 2011,
September 29, 2010, and September 30, 2009, was $693, $490, and $57, respectively. Total unrecognized stock option
compensation cost at September 28, 2011 was $94 and is expected to be recognized over a weighted average period of 0.55
years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><b><i>Employee Stock Purchase Plan</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Under the Employee Stock Purchase Plan (the
“ESPP”), a maximum of 92,627 shares of common stock are available for issuance to all eligible employees as determined
by the Board of Directors subject to a limitation of 7,500 shares per year. Unissued shares in any given calendar year are available
to increase the annual maximum number of shares issuable in subsequent years. Employees may purchase shares of common stock through
payroll deductions ranging from 2% to 10% of compensation up to a maximum fair market value of $200 or a maximum purchase of 50
shares per year, whichever is less, within the limitations of the offering. Prior to the second quarter of fiscal year 2009, shares
were purchased at a 15% discount from the lesser of the share price on the first or last day of the year. Beginning with the second
quarter of fiscal year 2009, shares are purchased on a quarterly basis at a 15% discount from the share price on the last day of
the quarter. Shares purchased under the ESPP were 812 in 2010 and 7,540 in 2009. During fiscal years 2010 and 2009, $32 and $153
was charged to expense related to the ESPP, respectively. No shares were purchased in fiscal year 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Our compensation philosophy, including the
various equity plans, changed during fiscal year 2010 to reflect present management’s view on the most effective method to
create shareholder value. The new incentives, which are cash based, are designed to ensure alignment with the Company’s objective
to maximize intrinsic business value on a per share basis. We resolved to suspend, indefinitely, all future option grants under
the 2008 Employee Stock Option Plan, we terminated the 2009 Employee Stock Option Plan, under which no options had been granted
to date, we placed a moratorium on the issuance of restricted stock, and we terminated the ESPP.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif"> We are involved in various legal proceedings
and have certain unresolved claims pending. We believe, based on examination of these matters and experiences to date, that the
ultimate liability, if any, in excess of amounts already provided in our consolidated financial statements is not likely to have
a material effect on our results of operations, financial position or cash flows.</font></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The fair value framework as established in
ASC paragraph 820-10-50-2 requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs)
used to price the assets or liabilities. Level 1 provides the most reliable measure of fair values, whereas Level 3 generally requires
significant management judgment. The three levels are defined as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-left: 23.9pt; border-collapse: collapse">
<tr>
<td style="width: 4%; vertical-align: top; line-height: 115%; text-align: left">•</td>
<td style="width: 96%; vertical-align: bottom; line-height: 115%; text-align: left">Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.</td></tr>
<tr>
<td style="vertical-align: top; line-height: 115%; text-align: left">•</td>
<td style="vertical-align: bottom; padding-right: 4.5pt; line-height: 115%; text-align: left">Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.</td></tr>
<tr>
<td style="vertical-align: top; line-height: 115%; text-align: left">•</td>
<td style="vertical-align: bottom; padding-right: 4.5pt; line-height: 115%; text-align: left">Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The following methods and assumptions were
used to determine the fair value of each class of the following assets and liabilities recorded at fair value in the Consolidated
Balance Sheet.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i>Cash equivalents: </i>Cash equivalents primarily
consist of money market funds. Money market funds that are carried at fair value, based on quoted market prices, are classified
within Level 1 of the fair value hierarchy. All other cash equivalents carried at fair value based on observable inputs for which
a quoted market price is not available are classified within Level 2 of the fair value hierarchy. Cash equivalents reflected below
includes $0 and $6,845 of cash equivalents held by the consolidated affiliated partnerships at September 28, 2011 and September
29, 2010, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i>Equity securities: </i>Except as follows,
the Company’s investments in equity securities are carried at fair value, based on quoted market prices, and are classified
within Level 1 of the fair value hierarchy.  Approximately $814 of the investments held by<b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">consolidated affiliated partnerships at September
29, 2010 have been classified within Level 2 of the fair value hierarchy and have been valued, in the absence of observable market
prices, by management, using valuation methodologies after giving consideration to a range of observable factors. The investment
was sold during fiscal year 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i>Non-qualified deferred compensation plan
investments: </i>The assets of the Non-Qualified Plan are set up in a rabbi trust. They represent mutual funds that are carried
at fair value, based on quoted market prices, and are classified within Level 1 of the fair value hierarchy.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i>Investment held by consolidated affiliated
partnership: </i>Investments of $193 and $323 as of September 28, 2011 and September 29, 2010, respectively, have been classified
within Level 3 of the fair value hierarchy and represent a private security.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i>Investment derivatives and interest rate
swaps: </i>Investment derivatives and interest rate swaps are marked to market each reporting period with fair value based on readily
available market quotes, and are classified within Level 2 of the fair value hierarchy. Interest rate swaps at September 28, 2011
represent the mark to market adjustment for Steak n Shake’s interest rate swap.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">As of September 28, 2011, the fair values of
financial assets and liabilities were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; font-weight: bold"> </td>
<td colspan="11" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">September 28, 2011</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="11" style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: center">September 29, 2010</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 4.5pt; line-height: 115%; font-size: 1pt; font-weight: bold; text-align: right"> </td>
<td colspan="11" style="line-height: 115%; font-size: 1pt; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-size: 1pt; text-align: right"> </td>
<td colspan="11" style="line-height: 115%; font-size: 1pt; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">Level 1</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">Level 2</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">Level
3</td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">Total</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">Level 1</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">Level 2</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">Level 3</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">Total</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%; font-weight: bold">Assets</td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="width: 47%; vertical-align: bottom; padding-left: 0.05in; line-height: 115%">Cash equivalents</td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%; font-weight: bold">$ </td>
<td style="width: 5%; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="width: 5%; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">88,022</td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="width: 4%; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="width: 5%; vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right">88,022</td>
<td style="width: 1%; vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; vertical-align: top; line-height: 115%">$</td>
<td style="width: 5%; vertical-align: bottom; line-height: 115%; text-align: right">6,845</td>
<td style="width: 1%; vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%">$</td>
<td style="width: 5%; vertical-align: bottom; line-height: 115%; text-align: right">38,134</td>
<td style="width: 1%; vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%">$</td>
<td style="width: 5%; vertical-align: bottom; line-height: 115%; text-align: right">-</td>
<td style="width: 1%; vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%">$</td>
<td style="width: 4%; vertical-align: bottom; line-height: 115%; text-align: right">44,979</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%">Equity securities:</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%">   Restaurant/Retail</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">89,971</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right">89,971</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">26,789</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">26,789</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%">   Other</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">25,350</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right">25,350</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">5,734</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">5,734</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%">Equity securities held by consolidated affiliated partnerships:</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%">   Restaurant/Retail</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">7,677</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right">7,677</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">5,559</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">5,559</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%">   Other</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">10,913</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right">10,913</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">8,931</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">814</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">9,745</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%">Non-qualified deferred compensation plan investments</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">546</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right">546</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">476</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">476</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%">Investment held by consolidated affiliated partnership</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">193</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right">193</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">323</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">323</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%">Total assets at fair value</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">134,457</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">88,022</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">193</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right">222,672</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">54,334</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"></td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: left">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">38,948</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">323</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%">93,605</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%; font-weight: bold">Liabilities</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%">Investment derivatives</td>
<td style="text-align: left; line-height: 115%; font-weight: bold; vertical-align: bottom">$</td>
<td style="text-align: right; line-height: 115%; font-weight: bold; vertical-align: bottom">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: left">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">- </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right">- </td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="text-align: right; line-height: 115%; vertical-align: bottom">$</td>
<td style="text-align: right; line-height: 115%; vertical-align: bottom">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: left">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">97</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="text-align: left; line-height: 115%; vertical-align: bottom">$</td>
<td style="text-align: right; line-height: 115%; vertical-align: bottom">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">97</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%">Interest rate swaps</td>
<td style="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; font-weight: bold; vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; font-weight: bold; vertical-align: bottom"> -</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"></td>
<td style="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; font-weight: bold; vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; font-weight: bold; vertical-align: bottom">439</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"></td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"></td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right">439</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"></td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"></td>
<td style="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; vertical-align: bottom">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; vertical-align: bottom"></td>
<td style="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; vertical-align: bottom">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"></td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">-</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%">Total liabilities at fair value</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">-</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">439</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> -</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.45pt; line-height: 115%; font-weight: bold; text-align: right">439</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: left">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; text-align: left; line-height: 115%; vertical-align: bottom">$</td>
<td style="border-bottom: windowtext 1pt solid; text-align: right; line-height: 115%; vertical-align: bottom">97</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">$ </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">-</td>
<td style="vertical-align: top; padding-right: -2.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: left">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">97</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There were no changes in our valuation techniques
used to measure fair values on a recurring basis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A reconciliation of the beginning and ending
balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%; font-size: 10pt; font-weight: bold"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; font-size: 10pt; font-weight: bold; text-align: center">September 28,</td>
<td style="vertical-align: top; line-height: 115%; font-size: 10pt; font-weight: bold; text-align: center"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%; font-size: 10pt; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-size: 10pt; font-weight: bold; text-align: center">2011</td>
<td style="vertical-align: top; line-height: 115%; font-size: 10pt; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.05in; line-height: 115%; font-size: 10pt; width: 81%">Beginning of period balance</td>
<td style="padding-right: 0.9pt; line-height: 115%; font-size: 10pt; font-weight: bold; text-align: right; width: 3%">$</td>
<td style="padding-right: 0.9pt; line-height: 115%; font-size: 10pt; font-weight: bold; text-align: right; width: 15%">323</td>
<td style="padding-right: 0.9pt; line-height: 115%; font-size: 10pt; font-weight: bold; width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.05in; line-height: 115%; font-size: 10pt">Sale of assets</td>
<td colspan="2" style="padding-right: 0.9pt; line-height: 115%; font-size: 10pt; font-weight: bold; text-align: right">(124</td>
<td style="padding-right: 0.9pt; line-height: 115%; font-size: 10pt; font-weight: bold">)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.05in; line-height: 115%; font-size: 10pt">Loss included in earnings</td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; padding-right: 0.9pt; line-height: 115%; font-size: 10pt; font-weight: bold; text-align: right">(6</td>
<td style="padding-right: 0.9pt; line-height: 115%; font-size: 10pt; font-weight: bold">)</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.05in; line-height: 115%; font-size: 10pt">End of period balance</td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.9pt; line-height: 115%; font-size: 10pt; font-weight: bold; text-align: right">$</td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.9pt; line-height: 115%; font-size: 10pt; font-weight: bold; text-align: right">193</td>
<td style="vertical-align: top; padding-right: 0.9pt; line-height: 115%; font-size: 10pt; font-weight: bold; text-align: right"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">During fiscal year 2011 the Company had impairments
on long-lived assets of $1,032. The fair value of the long-lived assets was determined based on Level 2 inputs using quoted prices
for similar properties and quoted prices for the properties from brokers. During fiscal year 2010, the Company had no significant
fair value adjustments applicable to items that are subject to non-recurring fair value measurement after the initial measurement
date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the second quarter of fiscal 2010, Steak
n Shake reacquired the noncontrolling interest of Steak n Shake of Tallahassee LLC for $168.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Our reportable business segments are organized
in a manner that reflects how management views those business activities. Certain businesses have been grouped together for segment
reporting based upon operations even though those business units are operated under separate management.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">As of September 28, 2011, our reportable segments
are: (1) Restaurant Operations and (2) Investment Management. Our Restaurant Operations segment includes Steak n Shake and Western
Sizzlin. The Company and its affiliates own a percentage of the funds included in our Investment Management segment and receive
allocations of investment gains and losses. In addition to the two aforementioned reportable segments, we present information
related to the holding company, Biglari Holdings, as Corporate and other.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">We assess and measure segment operating results
based on segment earnings as disclosed below. Segment earnings from operations are not necessarily indicative of cash available
to fund cash requirements, nor synonymous with cash flow from operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">The tabular information that follows shows
data of our reportable segments reconciled to amounts reflected in the Consolidated Financial Statements. The segments’ financial
information does not reflect the impact of eliminations arising from intersegment transactions. The eliminations row represents
the eliminations required to arrive at our consolidated GAAP reported results.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">A disaggregation of select data from our Consolidated
Statements of Earnings for the most recent year is presented in the tables that follow. Prior to the acquisitions of Western and
Biglari Capital in fiscal year 2010, we had only one reportable segment, which was related to our Steak n Shake restaurants.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Net revenue and earnings before income taxes and noncontrolling
interests for the years ended September 28, 2011, September 29, 2010, and September 30, 2009 were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 9pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="25" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Net Revenue</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 1pt; text-align: center"> </td><td style="font-size: 1pt; font-weight: bold"> </td>
<td colspan="25" style="font-size: 1pt; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</td><td style="font-weight: normal; padding-bottom: 1pt; font-style: normal"><b> </b></td>
<td colspan="3" style="font-weight: normal; text-align: center; border-bottom: Black 1pt solid; font-style: normal">2010</td><td style="padding-bottom: 1pt"> </td>
<td colspan="9" style="text-align: center; border-bottom: Black 1pt solid">2009</td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="font-weight: bold; text-indent: -0.2in; padding-left: 0.2in">Operating Business:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-indent: 0.2pt; padding-left: 1.1pt">Restaurant Operations:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 46%; text-indent: 0.25pt; padding-left: 14.6pt">Steak n Shake</td><td style="width: 5%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 11%; font-weight: bold; text-align: right">689,325</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">662,891</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">628,736</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt; text-indent: 0.25pt; padding-left: 0.2in">Western</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">16,078</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8,755</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt; text-indent: -0.2in; padding-left: 0.2in">Total Restaurant Operations</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">705,403</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">671,646</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">628,736</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-indent: -0.2in; padding-left: 0.2in"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-indent: -0.2in; padding-left: 0.2in">Investment Management:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-indent: 0.25pt; padding-left: 14.6pt">Management fees</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">224</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td> </td><td style="text-align: right">233</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt; text-indent: 0.25pt; padding-left: 14.6pt">Consolidated affiliated partnerships</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3,573</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,902</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt; text-indent: -0.2in; padding-left: 0.2in">Total Investment Management Operations</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3,797</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,135</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 2.5pt; text-indent: -0.2in; padding-left: 0.2in"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">709,200</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">673,781</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">628,736</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="8" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">Earnings before income taxes and noncontrolling interests</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="8" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">Net earnings attributable to Biglari Holdings Inc.</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: center"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; font-size: 1pt; text-align: right; text-indent: -0.2in"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-size: 1pt; font-weight: bold; text-align: right"> </td>
<td colspan="8" style="vertical-align: bottom; line-height: 115%; font-size: 1pt; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-size: 1pt; font-weight: bold; text-align: right"> </td>
<td colspan="8" style="vertical-align: top; line-height: 115%; font-size: 1pt; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-size: 1pt; font-weight: bold; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; font-weight: bold; text-indent: -0.2in"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">2010</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">2009</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: center">2010</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: center">2009</td>
<td style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; font-weight: bold; text-indent: -0.2in">Operating Business:</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 1.1pt; line-height: 115%; text-indent: 0.2pt">Restaurant Operations:</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 14.6pt; line-height: 115%; text-indent: 0.25pt; width: 51%">Steak n Shake</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; width: 1%"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right; width: 1%">  $</td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right; width: 6%">39,628</td>
<td style="vertical-align: top; line-height: 115%; text-align: right; width: 1%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right; width: 1%"> $</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right; width: 6%">37,731</td>
<td style="vertical-align: top; line-height: 115%; text-align: right; width: 1%"></td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right; width: 1%">$</td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right; width: 6%">8,747</td>
<td style="vertical-align: top; line-height: 115%; text-align: right; width: 1%"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right; width: 4%">$</td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right; width: 3%">28,363</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; width: 1%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: left; width: 4%">$</td>
<td style="vertical-align: top; line-height: 115%; text-align: right; width: 3%">26,894</td>
<td style="vertical-align: top; line-height: 115%; text-align: right; width: 1%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: left; width: 3%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right; width: 4%">7,279</td>
<td style="vertical-align: top; line-height: 115%; text-align: right; width: 1%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: 0.25pt">Western</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">2,425</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">1,019</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">1,591</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">634</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in">Total Restaurant Operations</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">42,053</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">38,750</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">8,747</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">29,954</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">27,528</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">7,279</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in">Investment Management:</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 14.6pt; line-height: 115%; text-indent: 0.25pt">Biglari Capital Corp. (Incentive Fee)</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">2,510</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right">1,535</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 14.6pt; line-height: 115%; text-indent: 0.25pt">Management fees</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">224</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">233</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right">139</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right">144</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 14.6pt; line-height: 115%; text-indent: 0.25pt"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 14.6pt; line-height: 115%; text-indent: 0.25pt">Consolidated affiliated partnerships</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">3,370</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">1,775</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; font-weight: bold; text-align: right">1,815</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">215</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in">Total Investment Management Operations</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">6,104</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">2,008</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; font-weight: bold; text-align: right">3,489</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">359</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; font-weight: bold; text-indent: -0.2in">Corporate and Other:</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.9pt">Corporate and other</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">(5,786</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold">)</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">(3,342</td>
<td style="vertical-align: top; line-height: 115%">)</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">(1,564</td>
<td style="vertical-align: top; line-height: 115%">)</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right">(3,819</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold">)</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right">(2,288</td>
<td style="vertical-align: top; line-height: 115%">)</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right">(1,287</td>
<td style="vertical-align: top; line-height: 115%">)</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.9pt">Investment and derivative gains/losses</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">7,970</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">4,024</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">9</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; font-weight: bold; text-align: right">4,941</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">2,495</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">6</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in">Total Corporate and Other</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">2,184</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">682</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">(1,555</td>
<td style="vertical-align: top; line-height: 115%">)</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; font-weight: bold; text-align: right">1,122</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">207</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">(1,281)</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"></td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; font-weight: bold; text-indent: -0.2in">Reconciliation of segments to consolidated amount:</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.9pt">Eliminations</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">(2,510</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold">)</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; font-weight: bold; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">47,831</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">41,440</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"></td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">7,192</td>
<td style="vertical-align: top; line-height: 115%; text-align: left"></td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: top; line-height: 115%; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: top; line-height: 115%; font-weight: bold; text-align: right">34,565</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: top; line-height: 115%; text-align: left">$</td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: top; line-height: 115%; text-align: right">28,094</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; line-height: 115%; text-align: left">$</td>
<td style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; line-height: 115%; text-align: right">5,998</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A disaggregation of our consolidated capital
expenditure, depreciation, and amortization captions for fiscal years ended September 28, 2011, September 29, 2010, and September
30, 2009 is presented in the table that follows.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: top; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="8" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">Capital Expenditures</td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="8" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">Depreciation and Amortization</td></tr>
<tr>
<td style="vertical-align: top; padding-left: 0.2in; line-height: 115%; font-size: 1pt; text-indent: -0.2in"> </td>
<td style="vertical-align: top; line-height: 115%; font-size: 1pt; text-align: center"> </td>
<td colspan="8" style="vertical-align: bottom; line-height: 115%; font-size: 1pt; font-weight: bold; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; font-size: 1pt; font-weight: bold; text-align: center"> </td>
<td colspan="8" style="vertical-align: bottom; line-height: 115%; font-size: 1pt; font-weight: bold; text-align: center"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: center">2010</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: center">2009</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; text-align: center">2010</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; text-align: center">2009</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; font-weight: bold; text-indent: -0.2in">Reportable segments:</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td colspan="2" style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td colspan="2" style="border-top: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td colspan="2" style="border-top: windowtext 1pt solid; vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.4in; line-height: 115%; text-indent: -0.2in">Restaurant Operations:</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 40.5pt; line-height: 115%; text-indent: -0.2in">Steak n Shake</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">11,092</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">6,061</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">5,751</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">27,279</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">28,696</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">31,369</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 40.5pt; line-height: 115%; text-indent: -0.2in">Western</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">18</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">785</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">431</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">—</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.4in; line-height: 115%; text-indent: -0.2in">Investment Management</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="width: 7px; vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">27</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">33</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="width: 7px; vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">—</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.4in; line-height: 115%; text-indent: -0.4in">Corporate and other</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">1,908</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">2,589</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">270</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">98</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">—</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; font-weight: bold; text-indent: -0.2in">Consolidated Results</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">13,018</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">8,650</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">5,751</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 2.25pt double; text-align: right; line-height: 115%; font-weight: bold; vertical-align: bottom">$</td>
<td style="border-bottom: windowtext 2.25pt double; text-align: right; line-height: 115%; font-weight: bold; vertical-align: bottom">28,361</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">29,258</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; line-height: 115%; text-align: right"> 31,369</td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A disaggregation of our consolidated asset
captions as of September 28, 2011 and September 29, 2010 is presented in the table that follows.</p>
<table cellspacing="0" cellpadding="0" style="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: top; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in"> </td>
<td colspan="5" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">Goodwill</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="6" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">Identifiable Assets</td>
<td style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: top; padding-left: 0.2in; line-height: 115%; font-size: 1pt; text-indent: -0.2in"> </td>
<td colspan="5" style="vertical-align: bottom; line-height: 115%; font-size: 1pt; font-weight: bold; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-size: 1pt; font-weight: bold; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-size: 1pt; font-weight: bold; text-align: center"> </td>
<td colspan="6" style="vertical-align: bottom; line-height: 115%; font-size: 1pt; font-weight: bold; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; font-size: 1pt"> </td></tr>
<tr>
<td style="vertical-align: top; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: center">2010</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">2010</td>
<td style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in">Reportable segments:</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.4in; line-height: 115%; text-indent: -0.2in">Restaurant Operations</td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 40.5pt; line-height: 115%; text-indent: -0.2in">Steak n Shake</td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">14,503</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: 0.7pt; line-height: 115%; text-align: right">$</td>
<td style="vertical-align: top; padding-right: 0.7pt; line-height: 115%; text-align: right">14,503</td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">406,619</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">$</td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">425,532</td>
<td style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 40.5pt; line-height: 115%; text-indent: -0.2in">Western</td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">13,026</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: 0.7pt; line-height: 115%; text-align: right">14,256</td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">7,919</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">8,705</td>
<td style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="width: 69%; vertical-align: bottom; padding-left: 0.4in; line-height: 115%; text-indent: -0.2in">Investment Management</td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="width: 5%; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">—</td>
<td style="width: 1%; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; vertical-align: top; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="width: 4%; vertical-align: top; padding-right: 0.7pt; line-height: 115%; text-align: right">—</td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%"> </td>
<td style="width: 1%; vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="width: 6%; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">19,186</td>
<td style="width: 1%; vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="width: 1%; vertical-align: top; line-height: 115%"> </td>
<td style="width: 1%; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="width: 6%; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">24,328</td>
<td style="width: 1%; vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.4in; line-height: 115%; text-indent: -28pt">Corporate and other</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; padding-right: 0.7pt; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">211,607</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">77,152</td>
<td style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.4in; line-height: 115%; text-indent: -28pt">Eliminations</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">—</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.7pt; line-height: 115%; text-align: right">—</td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">—</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">(637</td>
<td style="vertical-align: top; line-height: 115%">)</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in">Consolidated results</td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">$27,529</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.7pt; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 0.7pt; line-height: 115%; text-align: right">28,759</td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">645,331</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">535,080</td>
<td style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; font-weight: bold; text-indent: -0.2in">Reconciliation of segments to consolidated amount:</td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="border-top: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; text-indent: -0.2in">Goodwill</td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">27,529</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">28,759</td>
<td style="vertical-align: top; line-height: 115%"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 0.2in; line-height: 115%; font-weight: bold; text-indent: -0.2in">Total assets</td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">672,860</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">$</td>
<td style="border-bottom: windowtext 2.25pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; text-align: right">563,839</td>
<td style="vertical-align: top; line-height: 115%"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">During fiscal year 2011, the Company redefined
its identifiable assets to exclude intercompany receivables and payables for purposes of segment reporting. Prior year amounts
have been reclassified to match our current year presentation of identifiable assets.</p>
<p style="margin: 0pt; text-align: left"></p>
<p style="margin: 0pt"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td colspan="3" style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; font-weight: bold; text-align: center"><b>1<sup>st<br />
</sup>Quarter</b></td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; font-weight: bold; text-align: center"><b>2<sup>nd<br />
</sup>Quarter</b></td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; font-weight: bold; text-align: center"><b>3<sup>rd<br />
</sup>Quarter</b></td>
<td style="line-height: 115%; font-weight: bold; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; line-height: 115%; font-weight: bold; text-align: center"><b>4<sup>th<br />
</sup>Quarter</b></td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%">For the year ended September 28, 2011 (52 weeks) <sup>(1)</sup></td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: top; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Total net revenues <sup> </sup>	</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">158,722</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">211,277</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">170,861</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">168,340</td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Gross profit <sup>(2) </sup>	</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">39,090</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">47,713</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">40,432</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">43,236</td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Costs and expenses<sup> </sup>	</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">145,690</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">199,225</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">157,692</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">154,098</td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Earnings before income taxes</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">13,106</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">8,440</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">11,151</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">15,134</td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Net earnings attributable to Biglari Holdings Inc.</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">9,463</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">5,645</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">8,676</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">10,781</td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Basic earnings per common and common equivalent share</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">7.13</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">4.25</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">6.52</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">8.09</td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Diluted earnings per common and common equivalent share</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">7.08</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">4.23</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">6.49</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold">$</td>
<td style="vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: right">8.08</td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">For the year ended September 29, 2010 (52 weeks) <sup>(1)</sup></td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Total net revenues <sup> </sup>	</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">149,358</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">199,117</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">160,924</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">164,382</td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Gross profit <sup>(2)</sup> 	</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">36,197</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">44,631</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">41,503</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">39,623</td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Costs and expenses<sup> </sup>	</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">138,945</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">187,764</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">148,123</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">148,932</td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Earnings before income taxes</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">8,178</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">8,355</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">10,581</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">14,326</td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Net earnings attributable to Biglari Holdings Inc.</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">5,477</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">5,524</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">8,691</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">8,402</td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Basic earnings per common and common equivalent share</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">3.84</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">3.87</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">6.27</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">6.30</td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom; padding-left: 4.3pt; line-height: 115%">Diluted earnings per common and common equivalent share</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">3.82</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">3.84</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">6.23</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%">$</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">6.26</td></tr>
<tr>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-left: 4.5pt; line-height: 115%"> </td>
<td style="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: top; line-height: 115%; font-style: italic; text-align: center"> </td>
<td colspan="14" style="vertical-align: bottom; line-height: 115%; font-style: italic"> </td></tr>
<tr>
<td style="vertical-align: top; line-height: 115%; font-style: italic; text-align: left">(1)</td>
<td colspan="14" style="vertical-align: bottom; line-height: 115%; font-style: italic">Our fiscal year includes quarters consisting of 12, 16, 12 and 12 weeks, respectively, except for years where we have 53 weeks in which case the fourth quarter includes 13 weeks</td></tr>
<tr>
<td style="vertical-align: top; line-height: 115%; font-style: italic; text-align: left">(2)</td>
<td colspan="14" style="vertical-align: bottom; line-height: 115%; font-style: italic; text-align: left">We define Gross profit as Net sales less Cost of sales and Restaurant operating costs, which excludes Depreciation and amortization</td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">During fiscal year 2011, we had no new lease
obligations or lease retirements, and had $741 of capital expenditures in Accounts payable at year-end. During fiscal year 2010,
we had new leases of $248, lease retirements of $1,453 and $371 of capital expenditures in Accounts payable at year-end. Additionally,
we issued $22,959, of Debentures in connection with our acquisition of Western. We paid out $194 of that amount in lieu of fractional
Debentures. During fiscal year 2009, we issued 5,955 shares of restricted stock totaling $871, had lease retirements of $1,832,
and had $780 of capital expenditures in Accounts payable at year-end.</p>
<p style="margin: 0pt; text-align: left"></p>
30249000
26830000
6110000
-550000
-550000
673000
673000
3476000
750000
71000
861000
58000
0
222000
0
0
3147000
3903000
0
484766024
1433019
3797000
2135000
0