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Cracker Barrel Declares Quarterly Dividend and Authorizes Share Repurchase Program; Amends Proxy Statement



  Cracker Barrel Declares Quarterly Dividend and Authorizes Share Repurchase
  Program; Amends Proxy Statement

                   Declares Dividend of 75 cents per share

    Amends Proxy Statement to Include Advisory Vote on Proposal by Biglari
         Holdings Requesting Board Pay $20 per share Special Dividend

Business Wire

LEBANON, Tenn. -- September 26, 2013

Cracker Barrel Old Country Store, Inc. (“Cracker Barrel” or the “Company”)
(NASDAQ:CBRL) today announced that its Board of Directors has declared a
regular dividend to common shareholders of $0.75 per share, payable on
November 5, 2013, to shareholders of record on October 18, 2013. The Board
also authorized a new share repurchase program for up to $50 million of the
Company’s outstanding common stock. The share repurchase authorization is
effective immediately and replaces the prior authorization.

Cracker Barrel also filed with the Securities and Exchange Commission an
amended preliminary proxy statement for the Company’s Annual Meeting of
Shareholders on November 13, 2013 which includes the addition of an advisory
vote on the publicly-announced proposal by affiliates of Biglari Holdings,
Inc. requesting that the Board declare and pay a $20 per share special
dividend. The Board urges shareholders to vote against the non-binding,
advisory proposal.

On September 17, 2013, Cracker Barrel’s Chairman of the Board, James Bradford,
received a letter from Biglari Capital Corp., urging the Board to declare a
$20 per share special dividend and announcing plans to solicit shareholder
requests to call a special meeting of shareholders for a non-binding, advisory
vote on the proposal, to which the Company stated that it would respond in due
course.

At yesterday’s meeting, the Board determined to include the proposal among the
matters to be voted on at the Annual Meeting and avoid the need for a costly
and unnecessary special meeting of shareholders.

The Board believes the payment of a special cash dividend of $20 per share is
not in the best interests of the Company and its shareholders. The Board urges
shareholders to vote against the proposal for the following reasons:

  * The Board is keenly focused on effective capital allocation that delivers
    long-term value to our shareholders, including all alternatives to return
    capital to all shareholders.
  * A $20 dividend, representing an aggregate dividend of over $475 million,
    would require a substantial increase in leverage and in the Company’s risk
    profile. Such leverage would reduce the Company’s flexibility to continue
    to invest in and grow the business in the face of changes in market
    conditions and other contingencies in a way that the Board believes
    maximizes long-term results and enhances total returns to all
    shareholders.
  * The Company’s policies have strongly supported the generation of
    significant cash from its operating business, allowing the Company to
    triple its annual dividend from an annualized rate of $1 per share in
    November 2011 to $3 per share currently. This increase was achieved while
    the Company maintained a prudent risk profile and allowed the operating
    results to significantly enhance the growth in the stock price.

About Cracker Barrel Old Country Store

Cracker Barrel Old Country Store, Inc. provides a friendly home-away-from-home
in its old country stores and restaurants. Guests are cared for like family
while relaxing and enjoying real home-style food and shopping that's
surprisingly unique, genuinely fun and reminiscent of America's country
heritage…all at a fair price.

Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) was established in 1969
in Lebanon, Tenn. and operates 624 company-owned locations in 42 states. For
more information, visit crackerbarrel.com.

Important Additional Information

Cracker Barrel, its directors and certain of its executive officers may be
deemed to be participants in the solicitation of proxies from Cracker Barrel
shareholders in connection with the matters to be considered at Cracker
Barrel's 2013 Annual Meeting and any special meeting that may be called by
Cracker Barrel's shareholders. Cracker Barrel has filed a preliminary proxy
statement with the U.S. Securities and Exchange Commission (the "SEC") in
connection with the solicitation of proxies from Cracker Barrel shareholders
for the 2013 Annual Meeting, and may file a proxy statement in connection with
any such special meeting. When completed, a definitive proxy statement and a
form of proxy will be mailed to Cracker Barrel shareholders. INVESTORS AND
SHAREHOLDERS ARE STRONGLY ENCOURAGED TO READ THE PRELIMINARY PROXY STATEMENT,
THE DEFINITIVE PROXY STATEMENT AND ACCOMPANYING WHITE PROXY CARD WITH RESPECT
TO THE 2013 ANNUAL MEETING, ANY PROXY STATEMENT OR OTHER DOCUMENTS THAT MAY BE
FILED IN CONNECTION WITH ANY SPECIAL MEETING, AND OTHER DOCUMENTS FILED WITH
THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AS THEY
WILL CONTAIN IMPORTANT INFORMATION. Detailed information regarding the
identity of potential participants, and their direct or indirect interests, by
security holdings or otherwise, is set forth in the proxy statement and other
materials to be filed with the SEC in connection with Cracker Barrel's 2013
Annual Meeting. Information regarding the direct and indirect beneficial
ownership of Cracker Barrel's directors and executive officers in Cracker
Barrel securities is set forth in the proxy statement and other materials to
be filed with the SEC in connection with Cracker Barrel's 2013 Annual Meeting.
Shareholders will be able to obtain the proxy statement, any amendments or
supplements to the proxy statement and other documents filed by Cracker Barrel
with the SEC for no charge at the SEC's website at www.sec.gov. Copies will
also be available at no charge at the Investor Relations section of our
corporate website at www.crackerbarrel.com.

CBRL – F

Contact:

Cracker Barrel Old Country Store, Inc.
Investor:
Lawrence E. Hyatt, 615-235-4432
or
Media:
Jeanne Ludington, 615-443-9115
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