----

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|   |  UNITED STATES SECURITIES AND EXCHANGE COMMISSION |
|--------|--------------------------------------------------------|
|   |  Washington, D.C. 20549                           |
|   |                                                   |
|   |  FORM 10-K                                        |

|   |                                                            |
|--------|-----------------------------------------------------------------|
| x      | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
|   | EXCHANGE ACT OF 1934                                            |
|   | For the fiscal year ended December 26, 2010                     |

| Tennessee                                | 62-1192475          |
|------------------------------------------|---------------------|
| (State or other jurisdiction of          | (I.R.S. Employer    |
| incorporation or organization)           | Identification No.) |
|                                     |                |
| 3038 Sidco Drive                         |                |
| Nashville, Tennessee                     | 37204               |
| (Address of principal executive offices) | (Zip Code)          |

| Registrant’s telephone number, including area code:   | (615) 256-8500              |
|-------------------------------------------------------------|-----------------------------|
|                                                        |                        |
| Securities registered pursuant to Section 12(b) of the Act: | Common Stock, no par        |
|                                                        |                        |
| Name of each exchange on which registered                   | NASDAQ Global Select Market |
|                                                        |                        |
| Securities registered pursuant to Section 12(g) of the Act: | None                        |
|                                                        |                        |

|  Part of Form 10-K | Documents from which portions are incorporated by reference                                               |
|-------------------------|-----------------------------------------------------------------------------------------------------------|
| Part III                | Proxy Statement relating to the registrant’s Annual Meeting of Shareholders to be held May 18, 2011 |

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| PART I                                                                                                                     | 3      |
|----------------------------------------------------------------------------------------------------------------------------|--------|
| Item 1. Business                                                                                                           | 3      |
| Item 1A. Risk Factors                                                                                                      | 11     |
| Item 1B. Unresolved Staff Comments                                                                                         | 16     |
| Item 2. Properties                                                                                                         | 16     |
| Item 3. Legal Proceedings                                                                                                  | 16     |
| Item 4. (Removed and Reserved)                                                                                             | 16     |
| PART II                                                                                                                    | 17     |
| Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 17     |
| Item 6. Selected Financial Data                                                                                            | 20     |
| Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 22     |
| Item 7A. Quantitative and Qualitative Disclosures About Market Risk                                                        | 38     |
| Item 8. Financial Statements and Supplementary Data                                                                        | 39     |
| Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               | 73     |
| Item 9A. Controls and Procedures                                                                                           | 73     |
| Item 9B. Other Information                                                                                                 | 76     |
| PART III                                                                                                                   | 76     |
| Item 10. Directors, Executive Officers and Corporate Governance                                                            | 76     |
| Item 11. Executive Compensation                                                                                            | 76     |
| Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                    | 76     |
| Item 13. Certain Relationships and Related Transactions, and Director Independence                                         | 76     |
| Item 14. Principal Accountant Fees and Services                                                                            | 76     |
| PART IV                                                                                                                    | 77     |
| Item 15. Exhibits and Financial Statement Schedules                                                                        | 77     |
| SIGNATURES                                                                                                                 | 78     |
| EX-10.27 Summary of Director and Executive Officer Compensation                                                            |   |
| EX-10.29 First Amendment to the O’Charley’s Inc. Deferred Compensation Plan                                    |   |
| EX-21  Subsidiaries of the Company                                                                               |   |
| EX-23  Consent of KPMG LLP                                                                                       |   |
| EX-31.1 Section 302 Certification of the Chief Executive Officer                                                           |   |
| EX-31.2 Section 302 Certification of the Interim Chief Financial Officer                                                   |   |
| EX-32.1 Section 906 Certification of the Chief Executive Officer                                                           |   |
| EX-32.2 Section 906 Certification of the Interim Chief Financial Officer                                                   |   |

----

PART I

Item 1.               Business.

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| ·   | Strategic sourcing: manages and facilitates enterprise-wide sourcing activities, including the development of sourcing strategies, supplier negotiation and selection, and supplier performance management for specified expenditure areas. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Quality assurance: designs, implements, and measures strategic programs for both quality assurance and food safety that ensures we achieve, sustain, and continue to improve best of class programs for food quality and food safety for all our concepts. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Supply chain operations: ensures uninterrupted, timely flow of goods to our concepts, and monitors compliance with all sourcing and distribution agreements. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Alabama (18)      | Kentucky (20)       | Ohio (19)           |
|-------------------|---------------------|---------------------|
| Birmingham (5)    | Ashland             | Cincinnati (8)      |
| Decatur           | Bowling Green       | Cleveland           |
| Dothan            | Cold Spring         | Columbus (7)        |
| Florence          | Danville            | Dayton (3)          |
| Guntersville      | Elizabethtown       |                |
| Huntsville        | Florence            | South Carolina (11) |
| Mobile (4)        | Frankfort           | Aiken               |
| Montgomery        | Hopkinsville        | Anderson            |
| Opelika           | Lexington (4)       | Charleston (2)      |
| Oxford            | Louisville (5)      | Columbia (2)        |
| Tuscaloosa        | Owensboro           | Greenwood           |
|              | Paducah             | Rock Hill           |
| Arkansas (1)      | Richmond            | Simpsonville        |
| Jonesboro         |                | Spartanburg         |
|              | Louisiana (3)       | Summerville         |
| Florida (4)       | Lafayette           |                |
| Jacksonville (2)  | Lake Charles        | Tennessee (39)      |
| Panama City       | Monroe              | Chattanooga (2)     |
| Pensacola         |                | Clarksville (2)     |
|              | Mississippi (8)     | Cleveland           |
| Georgia (28)      | Gulfport            | Columbia            |
| Atlanta (20)      | Hattiesburg         | Cookeville          |
| Augusta           | Meridian            | Dickson             |
| Columbus          | Olive Branch        | Jackson             |
| Dalton            | Pearl               | Johnson City        |
| Ft. Oglethorpe    | Ridgeland           | Kingsport           |
| Gainesville       | Southaven           | Knoxville (5)       |
| Griffin           | Tupelo              | Manchester          |
| Macon (2)         |                | Memphis (4)         |
|              | Missouri (8)        | Morristown          |
| Illinois (5)      | Cape Girardeau      | Murfreesboro (2)    |
| Champaign         | St. Louis (7)       | Nashville (12)      |
| Marion            |                | Pigeon Forge        |
| O’Fallon    | North Carolina (21) | Spring Hill         |
| Springfield (2)   | Asheville           | Springfield         |
|              | Burlington          |                |
| Indiana (21)      | Charlotte (7)       | Virginia (12)       |
| Bloomington       | Fayetteville        | Bristol             |
| Clarksville       | Greensboro          | Fredericksburg      |
| Corydon           | Greenville          | Harrisonburg        |
| Evansville (2)    | Hendersonville      | Lynchburg           |
| Fort Wayne (2)    | Hickory             | Roanoke (2)         |
| Greenfield        | Jacksonville        | Richmond (6)        |
| Indianapolis (11) | Raleigh (2)         |                |
| Lafayette         | Wake Forest         | West Virginia (2)   |
| Richmond          | Wilmington          | Charleston (2)      |
|              | Winston-Salem (2)   |                |
|              |                | Wisconsin (1)       |
|              |                | Grand Chute         |

----

| Connecticut (11) | New Hampshire (14) | Massachusetts (61) |
|------------------|--------------------|--------------------|
| Dayville         | Concord            | Auburn             |
| Enfield          | Dover              | Boston (36)        |
| Groton           | Hooksett           | Centerville        |
| Hartford (4)     | Keene              | Chicopee           |
| New Haven        | Littleton          | Fairhaven          |
| Norwich          | Londonderry        | Fall River         |
| Stratford        | Manchester         | Fitchburg          |
| Torrington       | Nashua             | Franklin           |
|             | North Conway       | Greenfield         |
| Maine (5)        | Portsmouth         | Holyoke            |
| Auburn           | Salem              | Marlboro           |
| Augusta          | Seabrook           | Mashpee            |
| Bangor           | Tilton             | North Attleboro    |
| Portland (2)     | West Lebanon       | North Dartmouth    |
|             |               | Pittsfield         |
| Rhode Island (3) | New York (9)       | Plymouth           |
| Cranston         | Albany (2)         | Seekonk            |
| Newport          | Clifton Park       | Springfield (4)    |
| Westerly         | Kingston           | Tewksbury          |
|             | Plattsburgh        | West Yarmouth      |
| Vermont (3)      | Queensbury         | Worcester (3)      |
| Brattleboro      | Rotterdam          |               |
| Rutland          | Saratoga Springs   |               |
| Williston        | Utica              |               |
|             |               |               |

| Georgia (3)  | Kentucky (1)  | Maryland (2) | Missouri (1) |
|--------------|---------------|--------------|--------------|
| Atlanta (3)  | Louisville    | Annapolis    | St. Louis    |
|         |          | Towson       |         |
| Illinois (2) | Tennessee (2) |         |         |
| Chicago (2)  | Nashville (2) |         |         |

| Franchised Restaurants |         |           |             |
|------------------------|--------------|----------------|------------------|
|                   |         |           |             |
| Florida (1)            | Michigan (3) | Ohio (3)       | Pennsylvania (1) |
| Orlando                | Belleville   | Boardman       | Erie             |
|                   | Chesterfield | Cuyahoga Falls |             |
|                   | Holland      | Niles          | Tennessee (1)    |
|                   |         |           | Nashville        |

----

|  Franchise Entity                                     |  OpenRestaurants |   Markets                                                                              |
|------------------------------------------------------------|-----------------------|--------------------------------------------------------------------------------------------------|
|  O’Candall Group, Inc.                          |  5               |  Tampa and Orlando Florida, Western Pennsylvania, Northwest West Virginia and Northern Ohio |
|  Meritage Hospitality Group, Inc.                     |  3               |  Michigan                                                                                   |
|  Delaware North Companies Travel Hospitality Services |  1               |  Tennessee (Nashville International Airport)                                                |

----

----

| Name                 | Age | Position                                          |
|----------------------|-----|---------------------------------------------------|
| David W. Head        | 54  | Chief Executive Officer and President             |
| R. Jeffrey Williams  | 44  | Interim Chief Financial Officer and Treasurer     |
| Wilson L. Craft      | 57  | Concept President-O’Charley’s         |
| John R. Grady        | 58  | Concept President-Ninety Nine Restaurants         |
| Alfred L. Thimm, Jr. | 51  | Concept President-Stoney River Legendary Steaks   |
| Colin M. Daly        | 39  | General Counsel, Secretary and Compliance Officer |
| Lawrence D. Taylor   | 53  | Chief Supply Chain Officer                        |
| Robert F. Luz        | 50  | Vice President of Human Resources                 |
| Leon De Wet          | 49  | Chief Information Officer                         |

----

----

Item 1A.                      Risk Factors.

----

----

----

----

----

Item 1B.               Unresolved Staff Comments.

Item 2.               Properties.

|                    | Owned |   | Ground Lease |   | Land and Building Lease |   | Total |   |
|-------------------------|-------|--------|--------------|--------|-------------------------|--------|-------|--------|
| O’Charley’s | 95    |   | 83           |   | 43                      |   | 221   |   |
| Ninety Nine             | 0     |   | 28           |   | 78                      |   | 106   |   |
| Stoney River            | 3     |   | 5            |   | 3                       |   | 11    |   |
| Total                   | 98    |   | 116          |   | 124                     |   | 338   |   |

Item 3.               Legal Proceedings.

Item 4.               (Removed and Reserved

----

PART II

| Item 5. | Market for Registrant’s Common Equity, Related Stockholder Mattersand Issuer Purchases of Equity Securities. |
|---------|--------------------------------------------------------------------------------------------------------------------|

|           |   |   |   |   |   |   |   |
|----------------|--------|--------|--------|--------|--------|--------|--------|
|           | High   |   | Low    |
| Fiscal 2010    |   |   |   |   |   |   |   |
| First Quarter  | $      | 9.95   |   |   | $      | 6.35   |   |
| Second Quarter |   | 10.00  |   |   |   | 4.38   |   |
| Third Quarter  |   | 7.49   |   |   |   | 5.28   |   |
| Fourth Quarter |   | 7.98   |   |   |   | 6.65   |   |
|           |   |   |   |   |   |   |   |
| Fiscal 2009    |   |   |   |   |   |   |   |
| First Quarter  | $      | 4.95   |   |   | $      | 1.83   |   |
| Second Quarter |   | 10.20  |   |   |   | 4.18   |   |
| Third Quarter  |   | 11.41  |   |   |   | 7.45   |   |
| Fourth Quarter |   | 10.10  |   |   |   | 5.32   |   |

----

| Graph Data Points            |                      | 12/25/05                  | 12/31/06                             | 12/30/07                             | 12/28/08                             | 12/27/09                             |  12/26/2010 |
|------------------------------|---------------------------|---------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|------------------|
|                         |                      |                      |                                 |                                 |                                 |                                 |             |
| O’Charley’s Inc. | $  100.00       | $   136.59 | $     96.91 | $     13.52 | $     45.84 | $     51.38 |
| NASDAQ Composite             | $  100.00       | $   111.74 | $   124.67            | $     73.77 | $   107.12            | $   125.93            |
| S&P Restaurants          | $   100.00 | $   127.14 | $   140.30            | $   132.74            | $   155.16            | $   205.24            |

----

|   | O’Charley’s    Accounting Periods                                                                                                                                                                             | Total Number of Shares Purchased (1) |   | Average Price Paid Per Share |   | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   | Increase in Share Repurchase Authorization |   | Maximum Number of Shares or Approximate Dollar Value That May Yet be Purchased Under the Plans or Programs |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|--------|------------------------------|--------|----------------------------------------------------------------------------------|--------|--------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|--------|
|   | 10/04/10- 10/31/10                                                                                                                                                                                                                            | —                              | $      | —                      |   | —                                                                          |   | —                                    |   | —                                                                                                    |   |
|   | 11/01/10-11/28/10                                                                                                                                                                                                                             | 2,388                                |   | 7.00                         |   | —                                                                          |   | —                                    |   | —                                                                                                    |   |
|   | 11/29/10- 12/26/10                                                                                                                                                                                                                            | 1,919                                |   | 7.08                         |   | —                                                                          |   | —                                    |   | —                                                                                                    |   |
|   | Total for the Quarter                                                                                                                                                                                                                         | 4,307                                | $      | 7.04                         |   | —                                                                          |   | —                                    |   | —                                                                                                    |   |
|   |                                                                                                                                                                                                                                          |                                 |   |                         |   |                                                                             |   |                                       |   |                                                                                                       |   |
|   | (1)  Represents shares withheld to cover tax-withholding requirements relating to the vesting of restricted stock and stock options issued to employees pursuant to the Company’s shareholder-approved stock incentive plans. |

----

Item 6.               
Selected Financial Data

|                                                                                                                                                                                          | Fiscal Years                          |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|
|                                                                                                                                                                                          |                                  | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   |
|                                                                                                                                                                                          | (In thousands, except per share data) |
| Statement of Operations Data:                                                                                                                                                                 |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues:                                                                                                                                                                                     |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Restaurant sales                                                                                                                              | $                                     | 828,982 |   | $ | 865,342 |   | $ | 913,888 |   | $ | 952,440 |   | $ | 961,009 |   |   |
|         Commissary sales                                                                                                                              |                                  | — |   |   | — |   |   | — |   |   | 7,783 |   |   | 10,345 |   |   |
|         Franchise and other revenue                                                                                                                   |                                  | 1,127 |   |   | 931 |   |   | 843 |   |   | 472 |   |   | 428 |   |   |
|                                                                                                                                                                                          |                                  | 830,109 |   |   | 866,273 |   |   | 914,731 |   |   | 960,695 |   |   | 971,782 |   |   |
| Costs and Expenses:                                                                                                                                                                           |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Cost of restaurant sales:                                                                                                                           |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|             Cost of food and beverage                                                                                             |                                  | 247,558 |   |   | 252,207 |   |   | 270,870 |   |   | 278,966 |   |   | 286,151 |   |   |
|             Payroll and benefits                                                                                                  |                                  | 293,629 |   |   | 305,418 |   |   | 319,252 |   |   | 325,009 |   |   | 321,592 |   |   |
|             Restaurant operating costs                                                                                            |                                  | 175,025 |   |   | 171,930 |   |   | 184,378 |   |   | 181,035 |   |   | 182,635 |   |   |
|                  Cost of restaurant sales, exclusive of depreciation                                     |                                  | 716,212 |   |   | 729,555 |   |   | 774,500 |   |   | 785,010 |   |   | 790,378 |   |   |
|                          and amortization shown separately below |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                          |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Cost of commissary sales                                                                                                                            |                                  | — |   |   | — |   |   | — |   |   | 7,700 |   |   | 9,064 |   |   |
|        Advertising and marketing expenses                                                                                                                  |                                  | 34,655 |   |   | 32,234 |   |   | 33,753 |   |   | 32,086 |   |   | 27,537 |   |   |
|        General and administrative expenses                                                                                                                 |                                  | 39,474 |   |   | 38,343 |   |   | 44,292 |   |   | 48,670 |   |   | 52,211 |   |   |
|        Depreciation and amortization of property and equipment                                                                                             |                                  | 42,093 |   |   | 46,460 |   |   | 49,543 |   |   | 49,651 |   |   | 45,539 |   |   |
|        Impairment, disposal and restructuring charges, net (1)                                                                                             |                                  | 14,998 |   |   | 8,437 |   |   | 12,776 |   |   | 15,226 |   |   | 2,098 |   |   |
|        Goodwill impairment (2)                                                                                                                             |                                  | — |   |   | — |   |   | 93,656 |   |   | — |   |   | — |   |   |
|        Pre-opening costs                                                                                                                                   |                                  | 7 |   |   | 597 |   |   | 3,655 |   |   | 3,065 |   |   | 3,852 |   |   |
|                                                                                                                                                                                          |                                  | 847,439 |   |   | 855,626 |   |   | 1,012,175 |   |   | 941,408 |   |   | 930,679 |   |   |
| (Loss) Income from Operations                                                                                                                                                                 |                                  | (17,330 | ) |   | 10,647 |   |   | (97,444 | ) |   | 19,287 |   |   | 41,103 |   |   |
| Other Expense (Income):                                                                                                                                                                       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Interest expense, net                                                                                                                               |                                  | 11,812 |   |   | 11,628 |   |   | 14,966 |   |   | 12,287 |   |   | 14,343 |   |   |
|        Other, net                                                                                                                                          |                                  | (8 | ) |   | (68 | ) |   | 10 |   |   | (87 | ) |   | (6 | ) |   |
|                                                                                                                                                                                          |                                  | 11,804 |   |   | 11,560 |   |   | 14,976 |   |   | 12,200 |   |   | 14,337 |   |   |
| (Loss) Earnings from Continuing Operations before Income                                                                                                                                      |                                  | (29,134 | ) |   | (913 | ) |   | (112,420 | ) |   | 7,087 |   |   | 26,766 |   |   |
|        Taxes                                                                                                                                               |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income Tax (Benefit) Expense (3)                                                                                                                                                              |                                  | (1,849 | ) |   | 2,254 |   |   | 15,115 |   |   | (1,017 | ) |   | 7,571 |   |   |
| (Loss) Earnings from Continuing Operations                                                                                                                                               | $                                     | (27,285 | ) | $ | (3,167 | ) | $ | (127,535 | ) | $ | 8,104 |   | $ | 19,195 |   |   |
|                                                                                                                                                                                          |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) Earnings Per Share from Continuing Operations:                                                                                                                                         |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Basic                                                                                                                                               | $                                     | (1.29 | ) | $ | (0.15 | ) |   $ | (6.10 | ) |   $ | 0.35 |   |  $ | 0.82 |   |   |
|        Diluted                                                                                                                                             | $                                     | (1.29 | ) | $ | (0.15 | ) |   $ | (6.10 | ) |   $ | 0.34 |   |   $ | 0.81 |   |   |
| Balance Sheet Data (at end of period):                                                                                                                                                        |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Working capital deficit                                                                                                                                                                       | $                                     | (13,713 | ) | $ | (16,944 | ) | $ | (31,883 | ) | $ | (21,145 | ) | $ | (25,814 | ) |   |
| Total assets                                                                                                                                                                                  |                                  | 422,741 |   |   | 462,255 |   |   | 520,262 |   |   | 648,983 |   |   | 688,638 |   |   |
| Current portion of long-term debt and capitalized lease obligations                                                                                                                           |                                  | 1,710 |   |   | 1,979 |   |   | 6,640 |   |   | 8,597 |   |   | 9,812 |   |   |
| Long-term debt and capitalized lease obligations, including current portion                                                                                                              |                                  | 118,874 |   |   | 131,898 |   |   | 163,068 |   |   | 145,235 |   |   | 154,357 |   |   |
| Total shareholders’ equity                                                                                                                                                              |                                  | 178,234 |   |   | 209,119 |   |   | 211,760 |   |   | 366,276 |   |   | 381,499 |   |   |
| Cash dividends per share                                                                                                                                                                      | $                                     | — |   | $ | — |   | $ |        0.18 |   | $ |       0.18 |   | $ |  — |   |   |

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| (1)   | During 2010, we recorded total impairment, disposal and restructuring charges, net of $15.0 million.  Included are impairment charges of $11.5 million on 16 O’Charley’s restaurants, seven Ninety Nine restaurants and three surplus properties.  Also included is $3.2 million for exit and disposal costs relating to restaurant and facility closures. The remaining $0.3 million relates to other net losses on asset disposals. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350 “Intangibles – Goodwill and Other” (“FASB ASC 350”), in 2008 we recorded goodwill impairment charges of $93.1 million related to goodwill recorded in connection with the acquisition of the Ninety Nine concept and $0.6 million related to the acquisition of the Stoney River concept, resulting in the write off of all of the goodwill on our balance sheet. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | For fiscal 2010, the income tax provision included additional valuation allowances of $18.6 million to offset the current year increase in deferred tax assets. For fiscal 2009, the income tax provision included a net valuation allowance increase of $6.5 million to offset the current year increase in deferred tax assets. For fiscal 2008, the income tax provision included a charge of $61.6 million to establish a valuation reserve for substantially all of our deferred tax assets. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 7.    Management's Discussion and Analysis of Financial Condition and Results of Operations

----

----

----

|                                                                                                                                                                                                                                                                                       |   | 2010    |   |   | 2009    |   |   | 2008   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|--------|--------|--------|
| Revenues:                                                                                                                                                                                                                                                                                  |   |    |   |   |    |   |   |   |   |   |
|         Restaurant sales                                                                                                                                                                                                                           |   | 99.9    | %      |   | 99.9    | %      |   | 99.9   | %      |   |
|         Franchise and other revenue                                                                                                                                                                                                                |   | 0.1     |   |   | 0.1     |   |   | 0.1    |   |   |
|                                                                                                                                                                                                                                                                                       |   | 100.0   | %      |   | 100.0   | %      |   | 100.0  | %      |   |
| Costs and Expenses:                                                                                                                                                                                                                                                                        |   |    |   |   |    |   |   |   |   |   |
|        Cost of restaurant sales: (1)                                                                                                                                                                                                                    |   |    |   |   |    |   |   |   |   |   |
|             Cost of food and beverage                                                                                                                                                                                          |   | 29.9    | %      |   | 29.1    | %      |   | 29.6   | %      |   |
|             Payroll and benefits                                                                                                                                                                                               |   | 35.4    |   |   | 35.3    |   |   | 34.9   |   |   |
|             Restaurant operating costs                                                                                                                                                                                         |   | 21.1    |   |   | 19.9    |   |   | 20.2   |   |   |
| Cost of restaurant sales, exclusive of depreciation and                                amortization shown separately below |   | 86.4    |   |   | 84.3    |   |   | 84.7   |   |   |
|                                                                                                                                                                                                                                                                                       |   |    |   |   |    |   |   |   |   |   |
|        Advertising and marketing expenses                                                                                                                                                                                                               |   | 4.2     |   |   | 3.7     |   |   | 3.7    |   |   |
|        General and administrative expenses                                                                                                                                                                                                              |   | 4.8     |   |   | 4.4     |   |   | 4.8    |   |   |
|        Depreciation and amortization of  property and equipment                                                                                                                                                                               |   | 5.1     |   |   | 5.4     |   |   | 5.4    |   |   |
|        Impairment, disposal, and restructuring charges, net                                                                                                                                                                                             |   | 1.8     |   |   | 1.0     |   |   | 1.4    |   |   |
|        Goodwill impairment                                                                                                                                                                                                                              |   | — |   |   | — |   |   | 10.2   |   |   |
|        Pre-opening costs                                                                                                                                                                                                                                |   | — |   |   | 0.1     |   |   | 0.4    |   |   |
| (Loss) Income from Operations                                                                                                                                                                                                                                                              |   | (2.1    | )      |   | 1.2     |   |   | (10.7  | )      |   |
| Other Expense:                                                                                                                                                                                                                                                                             |   |    |   |   |    |   |   |   |   |   |
|        Interest expense, net                                                                                                                                                                                                                            |   | 1.4     |   |   | 1.3     |   |   | 1.6    |   |   |
| Loss from Continuing Operations Before Income Taxes                                                                                                                                                                                                                                        |   | (3.5    | )      |   | (0.1    | )      |   | (12.3  | )      |   |
| Income Tax (Benefit) Expense                                                                                                                                                                                                                                                               |   | (0.2    | )      |   | 0.3     |   |   | 1.7    |   |   |
| Loss from Continuing Operations                                                                                                                                                                                                                                                            |   | (3.3    | )      |   | (0.4    | )      |   | (13.9  | )      |   |
| Loss from Discontinued Operations, net                                                                                                                                                                                                                                                     |   | (0.9    | )      |   | (0.5    | )      |   | (0.5   | )      |   |
| Net Loss                                                                                                                                                                                                                                                                                   |   | (4.2    | )%     |   | (0.9    | )%     |   | (14.5  | )%     |   |

| (1) | Shown as a percentage of restaurant sales. |
|-----|--------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                       |   | 2010   |     |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                       |   |   |               |   |   |   |   |   |   |
| O’Charley’s Concept: (1)                                                                                                                                                                                                                                                                                                       |   |   |               |   |   |   |   |   |   |
| Restaurant Sales:                                                                                                                                                                                                                                                                                                                          | $      | 529.2  |               | $      | 558.9  |   | $      | 586.8  |   |
|                                                                                                                                                                                                                                                                                                                                       |   |   |               |   |   |   |   |   |   |
| Cost and expenses (2)                                                                                                                                                                                                                                                                                                                      |   |   |               |   |   |   |   |   |   |
| Cost of food and beverage                                                                                                                                                                                                                                                                                                                  |   | 29.9   | %                  |   | 29.0   | %      |   | 29.0   | %      |
| Payroll and benefits                                                                                                                                                                                                                                                                                                                       |   | 35.6   | %                  |   | 35.2   | %      |   | 34.8   | %      |
| Restaurant operating costs (3)                                                                                                                                                                                                                                                                                                             |   | 20.6   | %                  |   | 19.0   | %      |   | 19.5   | %      |
|                         Costs of restaurant sales, exclusive of depreciation and                                                                                                |   |   |               |   |   |   |   |   |   |
|                                   amortization                                                                                                              |   | 86.1   | %                  |   | 83.2   | %      |   | 83.3   | %      |
|                                                                                                                                                                                                                                                                                                                                       |   |   |               |   |   |   |   |   |   |
| Ninety Nine Concept:                                                                                                                                                                                                                                                                                                                       |   |   |               |   |   |   |   |   |   |
| Restaurant Sales:                                                                                                                                                                                                                                                                                                                          | $      | 265.9  |               | $      | 273.5  |   | $      | 290.1  |   |
|                                                                                                                                                                                                                                                                                                                                       |   |   |               |   |   |   |   |   |   |
| Cost and expenses (2)                                                                                                                                                                                                                                                                                                                      |   |   |               |   |   |   |   |   |   |
| Cost of food and beverage                                                                                                                                                                                                                                                                                                                  |   | 29.1   | %                  |   | 28.5   | %      |   | 29.1   | %      |
| Payroll and benefits                                                                                                                                                                                                                                                                                                                       |   | 36.3   | %                  |   | 36.3   | %      |   | 36.0   | %      |
| Restaurant operating costs (3)                                                                                                                                                                                                                                                                                                             |   | 22.2   | %                  |   | 21.5   | %      |   | 21.7   | %      |
|                        Costs of restaurant sales, exclusive of depreciation and                                                                                                      |   |   |               |   |   |   |   |   |   |
|                                  amortization                                                                                                                         |   | 87.6   | %                  |   | 86.3   | %      |   | 86.8   | %      |
|                                                                                                                                                                                                                                                                                                                                       |   |   |               |   |   |   |   |   |   |
| Stoney River Concept:                                                                                                                                                                                                                                                                                                                      |   |   |               |   |   |   |   |   |   |
| Restaurant Sales:                                                                                                                                                                                                                                                                                                                          | $      | 33.9   |               | $      | 32.9   |   | $      | 37.0   |   |
|                                                                                                                                                                                                                                                                                                                                       |   |   |               |   |   |   |   |   |   |
| Cost and expenses (2)                                                                                                                                                                                                                                                                                                                      |   |   |               |   |   |   |   |   |   |
| Cost of food and beverage                                                                                                                                                                                                                                                                                                                  |   | 35.7   | %                  |   | 36.1   | %      |   | 37.9   | %      |
| Payroll and benefits                                                                                                                                                                                                                                                                                                                       |   | 26.9   | %                  |   | 29.3   | %      |   | 28.7   | %      |
| Restaurant operating costs (3)                                                                                                                                                                                                                                                                                                             |   | 19.9   | %                  |   | 20.7   | %      |   | 18.6   | %      |
|                        Costs of restaurant sales, exclusive of depreciation and                                                                                                      |   |   |               |   |   |   |   |   |   |
|                      amortization                                                                                                                                                                                                 |   | 82.5   | %                  |   | 86.1   | %      |   | 85.2   | %      |
|                                                                                                                                                                                                                                                                                                                                       |   |   |               |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                       |   |   |               |   |   |   |   |   |   |
| (1) Includes revenue from O’Charley’s joint venture operations of $5.4 million and $7.8 million for fiscal years 2009 and 2008, respectively, and associated costs and expenses, but excludes revenue from franchised restaurants. During 2009, we acquired the remaining interests of both our joint venture operations. |
| (2) Shown as a percentage of restaurant sales.                                                                                                                                                                                                                                                                                        |
| (3) Includes rent, where 100 percent of the Ninety Nine restaurant locations are leased compared to 57 percent of O’Charley’s restaurant locations and 73 percent of Stoney River restaurant locations.                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                       |   |   |               |   |   |   |   |   |   |

----

|                                                             |   | 2010    |   | 2009    |   | 2008    |   |
|------------------------------------------------------------------|--------|---------|--------|---------|--------|---------|--------|
| Number of Restaurants:                                           |   |    |   |    |   |    |   |
| O’Charley’s Restaurants: (1)                         |   |    |   |    |   |    |   |
| In operation, beginning of year                                  |   | 235     |   | 232     |   | 229     |   |
| Restaurants opened/acquired (2)                                  |   | — |   | 3       |   | 4       |   |
| Restaurants closed                                               |   | (14     | )      | — |   | (1      | )      |
| In operation, end of year                                        |   | 221     |   | 235     |   | 232     |   |
| Ninety Nine Restaurants:                                         |   |    |   |    |   |    |   |
| In operation, beginning of year                                  |   | 116     |   | 116     |   | 115     |   |
| Restaurants opened                                               |   | — |   | 1       |   | 2       |   |
| Restaurants closed                                               |   | (10     | )      | (1      | )      | (1      | )      |
| In operation, end of year                                        |   | 106     |   | 116     |   | 116     |   |
| Stoney River Restaurants (3):                                    |   |    |   |    |   |    |   |
| In operation, beginning of year                                  |   | 11      |   | 11      |   | 10      |   |
| Restaurants opened                                               |   | — |   | 1       |   | 1       |   |
| Restaurants closed                                               |   | — |   | (1      | )      | — |   |
| In operation, end of year                                        |   | 11      |   | 11      |   | 11      |   |
| Franchise / Joint Venture Restaurants (O’Charley’s): |   |    |   |    |   |    |   |
| In operation, beginning of year                                  |   | 10      |   | 12      |   | 11      |   |
| Restaurants opened                                               |   | — |   | 2       |   | 1       |   |
| Restaurants closed/ acquired (2)                                 |   | (1      | )      | (4      | )      | — |   |
| In operation, end of year                                        |   | 9       |   | 10      |   | 12      |   |
| Average Weekly Sales per Store:                                  |   |    |   |    |   |    |   |
| O’Charley’s                                          | $      | 44,107  | $      | 46,189  | $      | 49,101  |   |
| Ninety Nine                                                      |   | 46,611  |   | 46,734  |   | 49,922  |   |
| Stoney River                                                     |   | 59,206  |   | 59,456  |   | 70,018  |   |
| Decrease in Same Store Sales (4):                                |   |    |   |    |   |    |   |
| O’Charley’s                                          |   | (4.9    | )%     | (5.8    | )%     | (4.1    | )%     |
| Ninety Nine                                                      |   | (1.5    | )%     | (6.8    | )%     | (5.2    | )%     |
| Stoney River                                                     |   | (1.5    | )%     | (16.4   | )%     | (9.1    | )%     |
| (Decrease) Increase in Same Store Guest Visits (4):              |   |    |   |    |   |    |   |
| O’Charley’s                                          |   | (1.6    | )%     | (4.8    | )%     | (6.6    | )%     |
| Ninety Nine                                                      |   | (1.6    | )%     | (4.7    | )%     | (7.4    | )%     |
| Stoney River                                                     |   | 9.8     | %      | (4.7    | )%     | (14.5   | )%     |
| (Decrease) Increase in Same Store Average Check per Guest (4):   |   |    |   |    |   |    |   |
| O’Charley’s                                          |   | (3.4    | )%     | (1.1    | )%     | 2.7     | %      |
| Ninety Nine                                                      |   | 0.1     | %      | (2.2    | )%     | 2.4     | %      |
| Stoney River                                                     |   | (10.2   | )%     | (12.3   | )%     | 6.3     | %      |
| Average Check per Guest (5):                                     |   |    |   |    |   |    |   |
| O’Charley’s                                          | $      | 12.43   | $      | 12.85   | $      | 12.99   |   |
| Ninety Nine                                                      |   | 14.59   |   | 14.62   |   | 14.97   |   |
| Stoney River                                                     |   | 36.97   |   | 41.22   |   | 47.72   |   |
|                                                             |   |    |   |    |   |    |   |

|  (1) | “O’Charley’s Restaurants” refers to O’Charley’s company-owned restaurants only. |
|-----------|---------------------------------------------------------------------------------------------------------------------|

| (2)   | Represents the acquisition of the remaining ownership interests in our Wi-Tenn Restaurants, LLC joint venture on June 2, 2009 and JFC Enterprises, LLC joint venture on September 28, 2009.  |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Subsequent to the end of 2010, one Stoney River restaurant was closed and the lease for the property was not renewed. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (4)   | When computing same store sales, guest visits and average check per guest, restaurants open for at least 78 weeks are compared from period to period for company-owned restaurants. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | The average check per guest is computed using all restaurants open during the year. |
|-----------------|-------------------------------------------------------------------------------------|

----

----

----

----

----

|                                                 |   | 2010    |   |   | 2009    |   |   | 2008    |   |
|------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| Net cash provided by operating activities            | $      | 35,715  |   | $      | 48,392  |   | $      | 54,336  |   |
| Net cash used in investing activities                |   | (14,321 | )      |   | (6,648  | )      |   | (43,113 | )      |
| Net cash used in financing activities                |   | (13,581 | )      |   | (26,682 | )      |   | (14,387 | )      |
| Net increase (decrease) in cash and cash equivalents | $      | 7,813   |   | $      | 15,062  |   | $      | (3,164  | )      |

----

|                                |   | 2010                 |    |   | 2009   |   |   | 2008   |   |
|-------------------------------------|--------|----------------------|---------|--------|--------|--------|--------|--------|--------|
|                                |   | (in thousands)  |
| New restaurant capital expenditures |   | $                    | — |   |   | $      | 3,053  |   | $      | 18,572 |   |
| Re-model capital expenditures       |   |                 | 5,096   |   |   |   | 1,184  |   |   | 18,223 |   |
| Other capital expenditures          |   |                 | 10,349  |   |   |   | 10,427 |   |   | 10,605 |   |
| Total capital expenditures          |   | $                    | 15,445  |   |   | $      | 14,664 |   | $      | 47,400 |   |

|                                                 |   |   |    |   | Payments Due by Period                     |    |
|------------------------------------------------------|--------|--------|---------|--------|--------------------------------------------|---------|
|                                                 |   |   |    |   | Less                                       |    |   |   |   |   |   |   | More |   |
|                                                 |   |   |    |   | than                                       |    |   |   |   |   |   |   | Than |   |
|  Contractual Obligation                         |   | Total  |    | 1 Yr   |                                       | 1-3 Yrs |   | 3-5 Yrs |   | 5 Years |   |
|                                                 |   |   |    |   |                                       |    |   |   |   |   |   |   |   |   |   |   |
| Long-term debt, excluding  credit facility |   | $      | 115,555 |   | $                                          | 285     |   | $ | 115,270 |   | $ | — |   | $ | — |   |
| Long-term debt interest (1)                          |   |   | 29,226  |   |                                       | 9,718   |   |   | 19,508 |   |   | — |   |   | — |   |
| Capitalized lease obligations                        |   |   | 1,458   |   |                                       | 1,458   |   |   | — |   |   | — |   |   | — |   |
| Operating leases                                     |   |   | 275,119 |   |                                       | 33,224  |   |   | 64,296 |   |   | 56,789 |   |   | 120,810 |   |
| Uncertain tax positions                              |   |   | 1,295   |   |                                       | 358     |   |   | 772 |   |   | 165 |   |   | — |   |
| Unconditional purchase obligations (2)               |   |   | 286,342 |   |                                       | 146,081 |   |   | 112,830 |   |   | 27,431 |   |   | — |   |
| Total contractual obligations                        |   | $      | 692,288 |   | $                                          | 188,289 |   | $ | 237,114 |   | $ | 192,263 |   | $ | 74,622 |   |
|                                                 |   |   |    |   |                                       |    |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |   |    |   | Amount of Commitment Expiration per Period |    |
|                                                 |   |   |    |   | Less                                       |    |   |   |   |   |   |   | More |   |
|                                                 |   |   |    |   | than                                       |    |   |   |   |   |   |   | Than |   |
|  Other Commercial Commitments                   |   | Total  |    | 1 Yr   |                                       | 1-3 Yrs |   | 3-5 Yrs |   | 5 Years |   |
| Line of credit (3)                                   |   | $      | — |   | $                                          | — |   | $ | — |   | $ | — |   | $ | — |   |
|                                                 |   |   |    |   |                                       |    |   |   |   |   |   |   |   |   |   |   |

| (1) | This interest primarily relates to $115.2 million in outstanding principal amount of senior subordinated notes with stated interest rate of 9 percent. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | These purchase obligations are primarily food obligations with fixed commitments in regards to the time period of the contract with annual price adjustments that can fluctuate and a fixed beverage contract with an annual price adjustment. In situations where the price is based on market prices, we use the existing market prices at December 26, 2010 to determine the amount of the obligation. Total unconditional purchase obligations shown are based on variable pricing that is adjusted annually. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The Company has a $45 million line of credit at December 26, 2010.  At December 26, 2010, we had no amounts outstanding on this credit facility.  We had $12.5 million of outstanding letters of credit as of December 26, 2010. As of December 26, 2010, we had $32.5 million of remaining borrowing capacity under our credit facility. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | Lease accounting |
|--------|---------|------------------|

|   | • | Share-based compensation |
|--------|---------|--------------------------|

|   | • | Property and equipment |
|--------|---------|------------------------|

|   | • | Trademarks |
|--------|---------|------------|

|   | • | Impairment of long-lived assets |
|--------|---------|---------------------------------|

|   | • | Income taxes |
|--------|---------|--------------|

----

----

----

----

Item 7A.                      Quantitative and Qualitative Disclosures About Market Risk.

----

Item 8.               Financial Statements and Supplementary Data

|                                                                                                                                                         | Page |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|------|
| Report of Independent Registered Public Accounting Firm (Consolidated Financial Statements)                                                                  | 40   |
| Consolidated Balance Sheets at December 26, 2010 and December 27, 2009                                                                                       | 41   |
| Consolidated Statements of Operations for the Years Ended December 26, 2010, December 27, 2009, and December 28, 2008                                        | 42   |
| Consolidated Statements of Shareholders’ Equity and Comprehensive Loss for the Years Ended December 26, 2010, December 27, 2009, and December 28, 2008 | 43   |
| Consolidated Statements of Cash Flows for the Years Ended December 26, 2010, December 27, 2009, and December 28, 2008                                        | 44   |
| Notes to the Consolidated Financial Statements                                                                                                               | 45   |
| Report of Independent Registered Public Accounting Firm (Internal Control Over Financial Reporting)                                                          | 75   |

----

Report of Independent Registered Public Accounting Firm

----

CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                                                        |   |           | December 26, |   |   |   | December 27,                                                                   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------------|--------|--------|--------|--------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                        |   |           | 2010         |   |   |   | 2009                                                                           |   |
|                                                                                                                                                                                                        |   | (in thousands) |
| ASSETS                                                                                                                                                                                                      |   |           |         |   |   |   |                                                                           |   |
| Current Assets:                                                                                                                                                                                             |   |           |         |   |   |   |                                                                           |   |
|     Cash and cash equivalents                                                                                                                                                           |   | $              | 29,693       |   |   | $      |             21,880 |   |
|     Trade accounts receivable, less allowance for doubtful accounts of $129 in 2010              and $148 in 2009 |   |           | 14,931       |   |   |   | 17,209                                                                         |   |
|     Inventories                                                                                                                                                                         |   |           | 9,071        |   |   |   | 10,594                                                                         |   |
|     Assets held for sale                                                                                                                                                                |   |           | 4,847        |   |   |   | 1,937                                                                          |   |
|     Other current assets                                                                                                                                                                |   |           | 4,201        |   |   |   | 4,434                                                                          |   |
|           Total current assets                                                                                                                            |   |           | 62,743       |   |   |   | 56,054                                                                         |   |
|                                                                                                                                                                                                        |   |           |         |   |   |   |                                                                           |   |
| Property and equipment, net of accumulated depreciation of $379,580 in 2010 and $356,818 in 2009                                                                                                            |   |           | 320,011      |   |   |   | 366,850                                                                        |   |
| Trade names and other intangible assets                                                                                                                                                                     |   |           | 25,946       |   |   |   | 25,946                                                                         |   |
| Other assets                                                                                                                                                                                                |   |           | 14,041       |   |   |   | 13,405                                                                         |   |
| Total Assets                                                                                                                                                                                                |   | $              | 422,741      |   |   | $      | 462,255                                                                        |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                  |   |           |         |   |   |   |                                                                           |   |
| Current Liabilities:                                                                                                                                                                                        |   |           |         |   |   |   |                                                                           |   |
|      Trade accounts payable                                                                                                                                                        |   | $              | 8,211        |   |   | $      |             5,101  |   |
|      Accrued payroll and related expenses                                                                                                                                          |   |           | 14,639       |   |   |   | 16,044                                                                         |   |
|      Accrued expenses                                                                                                                                                              |   |           | 24,314       |   |   |   | 21,446                                                                         |   |
|      Deferred revenue                                                                                                                                                              |   |           | 17,584       |   |   |   | 17,969                                                                         |   |
|      Federal, state and local taxes                                                                                                                                                |   |           | 9,998        |   |   |   | 10,459                                                                         |   |
|      Current portion of long-term debt and capitalized lease obligations                                                                                                           |   |           | 1,710        |   |   |   | 1,979                                                                          |   |
|           Total current liabilities                                                                                                                       |   |           | 76,456       |   |   |   | 72,998                                                                         |   |
|                                                                                                                                                                                                        |   |           |         |   |   |   |                                                                           |   |
| Deferred income taxes                                                                                                                                                                                       |   |           | 4,034        |   |   |   | 1,386                                                                          |   |
| Other liabilities                                                                                                                                                                                           |   |           | 46,853       |   |   |   | 48,833                                                                         |   |
| Long-term debt, less current portion                                                                                                                                                                        |   |           | 117,164      |   |   |   | 128,121                                                                        |   |
| Capitalized lease obligations, less current portion                                                                                                                                                         |   |           | —      |   |   |   | 1,798                                                                          |   |
|                                                                                                                                                                                                        |   |           |         |   |   |   |                                                                           |   |
| Shareholders’ Equity:                                                                                                                                                                                 |   |           |         |   |   |   |                                                                           |   |
|      Common stock—No par value; authorized, 50,000 shares; issued and outstanding,  21,713 in 2010 and 21,547 in 2009                                              |   |           | 165,547      |   |   |   | 161,514                                                                        |   |
|      Retained earnings                                                                                                                                                             |   |           | 12,687       |   |   |   | 47,605                                                                         |   |
|           Total shareholders’ equity                                                                                                                |   |           | 178,234      |   |   |   | 209,119                                                                        |   |
| Total Liabilities and Shareholders’ Equity                                                                                                                                                            |   | $              | 422,741      |   |   | $      | 462,255                                                                        |   |

----

CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                                                                                                                                                                                                                                                                                                                   | Year Ended                            |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                   |                                  | December 26, |   |   | December 27, |   |   | December 28, |   |
|                                                                                                                                                                                                                                                                                                                                                   |                                  | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                                                                                                                                                                                                   | (in thousands, except per share data) |
| Revenues:                                                                                                                                                                                                                                                                                                                                              |                                  |   |   |   |   |   |   |   |   |
|        Restaurant sales                                                                                                                                                                                                                                                                                             | $                                     | 828,982 |   | $ | 865,342 |   | $ | 913,888 |   |
|        Franchise and other revenue                                                                                                                                                                                                                                                                                  |                                  | 1,127 |   |   | 931 |   |   | 843 |   |
|                                                                                                                                                                                                                                                                                                                                                   |                                  | 830,109 |   |   | 866,273 |   |   | 914,731 |   |
|                                                                                                                                                                                                                                                                                                                                                   |                                  |   |   |   |   |   |   |   |   |
| Costs and Expenses:                                                                                                                                                                                                                                                                                                                                    |                                  |   |   |   |   |   |   |   |   |
|        Cost of restaurant sales:                                                                                                                                                                                                                                                                                    |                                  |   |   |   |   |   |   |   |   |
|            Cost of food and beverage                                                                                                                                                                                                                                                            |                                  | 247,558 |   |   | 252,207 |   |   | 270,870 |   |
|            Payroll and benefits                                                                                                                                                                                                                                                                 |                                  | 293,629 |   |   | 305,418 |   |   | 319,252 |   |
|            Restaurant operating costs                                                                                                                                                                                                                                                           |                                  | 175,025 |   |   | 171,930 |   |   | 184,378 |   |
|                  Cost of restaurant sales, exclusive of depreciation and                         amortization shown separately below |                                  | 716,212 |   |   | 729,555 |   |   | 774,500 |   |
|                                                                                                                                                                                                                                                                                                                                                   |                                  |   |   |   |   |   |   |   |   |
|        Advertising and marketing expenses                                                                                                                                                                                                                                                                           |                                  | 34,655 |   |   | 32,234 |   |   | 33,753 |   |
|        General and administrative expenses                                                                                                                                                                                                                                                                          |                                  | 39,474 |   |   | 38,343 |   |   | 44,292 |   |
|        Depreciation and amortization of property and equipment                                                                                                                                                                                                                                                      |                                  | 42,093 |   |   | 46,460 |   |   | 49,543 |   |
|        Impairment, disposal and restructuring charges, net                                                                                                                                                                                                                                                          |                                  | 14,998 |   |   | 8,437 |   |   | 12,776 |   |
|        Goodwill impairment                                                                                                                                                                                                                                                                                          |                                  | — |   |   | — |   |   | 93,656 |   |
|        Pre-opening costs                                                                                                                                                                                                                                                                                            |                                  | 7 |   |   | 597 |   |   | 3,655 |   |
|                                                                                                                                                                                                                                                                                                                                                   |                                  | 847,439 |   |   | 855,626 |   |   | 1,012,175 |   |
| (Loss) Income from Operations                                                                                                                                                                                                                                                                                                                          |                                  | (17,330 | ) |   | 10,647 |   |   | (97,444 | ) |
| Other Expense  (Income):                                                                                                                                                                                                                                                                                                                     |                                  |   |   |   |   |   |   |   |   |
|        Interest expense, net                                                                                                                                                                                                                                                                                        |                                  | 11,812 |   |   | 11,628 |   |   | 14,966 |   |
|        Other, net                                                                                                                                                                                                                                                                                                   |                                  | (8 | ) |   | (68 | ) |   | 10 |   |
|                                                                                                                                                                                                                                                                                                                                                   |                                  | 11,804 |   |   | 11,560 |   |   | 14,976 |   |
| Loss from Continuing Operations Before Income Taxes                                                                                                                                                                                                                                                                                                    |                                  | (29,134 | ) |   | (913 | ) |   | (112,420 | ) |
| Income Tax (Benefit) Expense                                                                                                                                                                                                                                                                                                                           |                                  | (1,849 | ) |   | 2,254 |   |   | 15,115 |   |
|                                                                                                                                                                                                                                                                                                                                                   |                                  |   |   |   |   |   |   |   |   |
| Loss from Continuing Operations                                                                                                                                                                                                                                                                                                                        |                                  | (27,285 | ) |   | (3,167 | ) |   | (127,535 | ) |
| Loss from Discontinued Operations, Net                                                                                                                                                                                                                                                                                                                 |                                  | (7,630 | ) |   | (4,158 | ) |   | (4,962 | ) |
| Net Loss                                                                                                                                                                                                                                                                                                                                               | $                                     | (34,915 | ) | $ | (7,325 | ) | $ | (132,497 | ) |
|                                                                                                                                                                                                                                                                                                                                                   |                                  |   |   |   |   |   |   |   |   |
| Net Loss Attributable to Common Shareholders – basic and diluted:                                                                                                                                                                                                                                                                                |                                  |   |   |   |   |   |   |   |   |
|         Loss from Continuing Operations                                                                                                                                                                                                                                                                        | $                                     | (1.29 | ) | $ | (0.15 | ) | $ | (6.10 | ) |
|         Loss from Discontinued Operations, net                                                                                                                                                                                                                                                                 |                                  | (0.36 | ) |   | (0.20 | ) |   | (0.24 | ) |
| Net Loss Attributable to Common Shareholders                                                                                                                                                                                                                                                                                                           | $                                     | (1.65 | ) | $ | (0.35 | ) | $ | (6.34 | ) |
|                                                                                                                                                                                                                                                                                                                                                   |                                  |   |   |   |   |   |   |   |   |

----

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND

COMPREHENSIVE LOSS

|                                                                     |   | Common Stock   |   |   |    |   |         |              |   |
|--------------------------------------------------------------------------|--------|----------------|--------|--------|---------|--------|--------------|-------------------|--------|
|                                                                     |   | Shares         |   |   | Amount  |   |         | Retained Earnings |   |   | Total |   |
|                                                                     |   | (in thousands) |
| Balance, December 30, 2007                                          |   | 23,148         |   | $      | 174,985 |   | $            | 191,291           |   | $ | 366,276 |   |
| Comprehensive loss:                                                      |   |           |   |   |    |   |         |              |   |   |   |   |
|      Net loss                                   |   |           |   |   | — |   |         | (132,497          | )      |   | (132,497 | ) |
| Shares tendered and retired for minimum tax withholdings                 |   | (56            | )      |   | (583    | )      |         | —           |   |   | (583 | ) |
| Shares issued under CHUX Ownership Plan and exercise of stock            |   |           |   |   |    |   |         |              |   |   |   |   |
|      options                                    |   | 125            |   |   | 1,109   |   |         | —           |   |   | 1,109 |   |
| Excess tax benefit from share-based payments                             |   |           |   |   | 177     |   |         | —           |   |   | 177 |   |
| Dividends paid ($0.18 per share)                                         |   |           |   |   | — |   |         | (3,864            | )      |   | (3,864 | ) |
| Shares repurchased                                                       |   | (2,185         | )      |   | (24,775 | )      |         | —           |   |   | (24,775 | ) |
| Share-based compensation expense                                         |   | 271            |   |   | 5,917   |   |         | —           |   |   | 5,917 |   |
| Balance, December 28, 2008                                          |   | 21,303         |   |   | 156,830 |   |         | 54,930            |   |   | 211,760 |   |
|                                                                     |   |           |   |   |    |   |         |              |   |   |   |   |
| Comprehensive loss:                                                      |   |           |   |   |    |   |         |              |   |   |   |   |
|      Net loss                                   |   |           |   |   | — |   |         | (7,325            | )      |   | (7,325 | ) |
| Noncontrolling interest, net                                             |   |           |   |   | (384    | )      |         | —           |   |   | (384 | ) |
| Shares tendered  and retired for minimum tax withholdings      |   | (51            | )      |   | (220    | )      |         | —           |   |   | (220 | ) |
| Shares issued under CHUX Ownership Plan and  exercise of stock |   |           |   |   |    |   |         |              |   |   |   |   |
|      options                                    |   | 229            |   |   | 799     |   |         | —           |   |   | 799 |   |
| Share-based compensation expense                                         |   | 66             |   |   | 4,489   |   |         | —           |   |   | 4,489 |   |
| Balance, December 27, 2009                                          |   | 21,547         |   |   | 161,514 |   |    | 47,605            |   |   | 209,119 |   |
|                                                                     |   |           |   |   |    |   |         |              |   |   |   |   |
| Comprehensive loss:                                                      |   |           |   |   |    |   |         |              |   |   |   |   |
|      Net loss                                   |   |           |   |   | — |   |         | (34,915           | )      |   | (34,915 | ) |
| Shares tendered and retired for minimum tax withholdings                 |   | (41            | )      |   | (307    | )      |         | —           |   |   | (307 | ) |
| Shares issued under CHUX Ownership Plan and exercise of  stock |   |           |   |   |    |   |         |              |   |   |   |   |
|      options                                    |   | 113            |   |   | 745     |   |         | —           |   |   | 745 |   |
| Excess tax benefit from share-based payments                             |   |           |   |   | 11      |   |         | —           |   |   | 11 |   |
| Dividends paid                                                           |   |           |   |   | — |   |         | (3                | )      |   | (3 | ) |
| Share-based compensation expense                                         |   | 94             |   |   | 3,584   |   |         | —           |   |   | 3,584 |   |
| Balance, December 26, 2010                                               |   | 21,713         |   | $      | 165,547 |   | $            | 12,687            |   | $ | 178,234 |   |

----

CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                                                        |   | Year Ended     |   |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|
|                                                                                                                        |   | December 26,   |   |   | December 27, |   |   | December 28, |   |   |
|                                                                                                                        |   | 2010           |   |   | 2009 |   |   | 2008 |   |   |
|                                                                                                                        |   | (in thousands) |   |   |
| Cash Flows from Operating Activities:                                                                                       |   |           |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                    | $      | (34,915        | )      | $      |            (?,325 | ) | $ | (132,497 | ) |   |
| Adjustments to reconcile net loss to net cash provided by operating activities:                                             |   |           |   |   |   |   |   |   |   |   |
|      Depreciation and amortization of property and equipment                                       |   | 42,495         |   |   | 47,283 |   |   | 50,776 |   |   |
|      Amortization of debt issuance costs and swap termination payments, net                        |   | 728            |   |   | 282 |   |   | 1,326 |   |   |
|      Deferred income taxes and other income tax related items                                      |   | 2,484          |   |   | (638 | ) |   | 22,666 |   |   |
|      Share-based compensation                                                                      |   | 3,584          |   |   | 4,489 |   |   | 5,917 |   |   |
|      Loss on early extinguishment of debt                                                          |   | 198            |   |   | — |   |   | — |   |   |
|      Amortization of deferred gain on sale-leasebacks                                              |   | (1,056         | )      |   | (1,056 | ) |   | (1,056 | ) |   |
|      Loss on the sale of assets                                                               |   | 182            |   |   | 129 |   |   | 59 |   |   |
|      Goodwill impairment                                                                           |   | —        |   |   | — |   |   | 93,656 |   |   |
|      Impairment, disposal and restructuring charges, net                                           |   | 20,547         |   |   | 10,975 |   |   | 16,888 |   |   |
| Noncontrolling interests                                                                                                    |   | —        |   |   | (83 | ) |   | — |   |   |
|      Changes in assets and liabilities:                                                            |   |           |   |   |   |   |   |   |   |   |
|             Trade accounts and other receivables                |   | 2,627          |   |   | 2,161 |   |   | (2,040 | ) |   |
|             Inventories                                         |   | 1,318          |   |   | 6,836 |   |   | (5,406 | ) |   |
|             Other current assets                                |   | 212            |   |   | 2,544 |   |   | (3,378 | ) |   |
|             Trade accounts payable                              |   | 3,110          |   |   | (11,365 | ) |   | 5,658 |   |   |
|             Deferred revenue                                    |   | (385           | )      |   | (144 | ) |   | 304 |   |   |
|         Accrued payroll, accrued expenses, and federal, state and local taxes       |   | (1,978         | )      |   | (6,423 | ) |   | 4,374 |   |   |
|          Other long-term assets and liabilities                                |   | (3,436         | )      |   | 727 |   |   | (2,911 | ) |   |
| Net cash provided by operating activities                                                                                   |   | 35,715         |   |   | 48,392 |   |   | 54,336 |   |   |
|                                                                                                                        |   |           |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities:                                                                                       |   |           |   |   |   |   |   |   |   |   |
| Additions to property and equipment                                                                                         |   | (15,445        | )      |   | (14,664 | ) |   | (47,400 | ) |   |
| Proceeds from the sale of assets                                                                                            |   | 1,137          |   |   | 7,971 |   |   | 4,184 |   |   |
| Other, net                                                                                                                  |   | (13            | )      |   | 45 |   |   | 103 |   |   |
| Net cash used in investing activities                                                                                       |   | (14,321        | )      |   | (6,648 | ) |   | (43,113 | ) |   |
|                                                                                                                        |   |           |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities:                                                                                       |   |           |   |   |   |   |   |   |   |   |
| Proceeds from long-term debt                                                                                                |   | —        |   |   | — |   |   | 23,812 |   |   |
| Payments on long-term debt and capitalized lease obligations                                                                |   | (2,352         | )      |   | (30,452 | ) |   | (9,509 | ) |   |
| Repurchase of senior notes                                                                                                  |   | (9,993         | )      |   | — |   |   | — |   |   |
| Payments to noncontrolling interests                                                                                        |   | —        |   |   | (300 | ) |   | — |   |   |
| Dividends paid                                                                                                              |   | (3             | )      |   | — |   |   | (3,864 | ) |   |
| Shares repurchased                                                                                                          |   | —        |   |   | — |   |   | (24,775 | ) |   |
| Proceeds from the exercise of stock options and issuances under CHUX     Ownership  Plan |   | 745            |   |   | 799 |   |   | 1,109 |   |   |
| Proceeds from swap cancellation                                                                                             |   | —        |   |   | 3,510 |   |   | — |   |   |
| Excess tax benefit from share-based payments                                                                                |   | 11             |   |   | — |   |   | 177 |   |   |
| Shares tendered and retired for minimum tax withholdings                                                                    |   | (307           | )      |   | (220 | ) |   | (583 | ) |   |
| Debt issuance costs                                                                                                         |   | (1,682         | )      |   | (19 | ) |   | (891 | ) |   |
| Other financing activities                                                                                                  |   | —        |   |   | — |   |   | 137 |   |   |
| Net cash used in financing activities                                                                                       |   | (13,581        | )      |   | (26,682 | ) |   | (14,387 | ) |   |
| Increase (decrease) in cash and cash equivalents                                                                            |   | 7,813          |   |   | 15,062 |   |   | (3,164 | ) |   |
| Cash and cash equivalents at beginning of the year                                                                          |   | 21,880         |   |   | 6,818 |   |   | 9,982 |   |   |
| Cash and cash equivalents at end of the year                                                                                | $      | 29,693         |   | $      | 21,880 |   | $ |            6,818 |   |   |

----

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

----

----

----

|                     |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|--------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Revenues                 | $      | 12,973 |   | $      | 14,566 |   | $      | 16,429 |   |
| Loss before income taxes | $      | (7,640 | )      | $      | (4,265 | )      | $      | (5,254 | )      |
| Income tax benefit       | $      | (10    | )      | $      | (107   | )      | $      | (292   | )      |
| Net Loss                 | $      | (7,630 | )      | $      | (4,158 | )      | $      | (4,962 | )      |

|                              |   | Fair Value Measurement |   |
|-----------------------------------|--------|------------------------|--------|
| Description                       |   | Level                  |   | 2010 |   |   | 2009 |   |
|                              |   |                   |   |   |   |   |   |   |
| Deferred compensation plan assets |   | 1                      | $      | 4,227 |   | $ | 4,644 |   |

----

|                            |                                           |                           |   |    |   |    |   |    |   |         |   |
|---------------------------------|------------------------------------------------|--------------------------------|--------|---------|--------|---------|--------|---------|--------|--------------|--------|
|                            | Fair Value Measurement at Reporting Date Using |
|                            |                                           | December 26, 2010CarryingValue |   | Level 1 |   | Level 2 |   | Level 3 |   | Total Losses |   |
|                            |                                           |                           |   |    |   |    |   |    |   |         |   |
| Long-lived assets held and used | $                                              | 2,800                          | $      | — | $      | 2,546   | $      | 254     | $      | (10,770      | )      |
| Long-lived assets held for sale |                                           | 1,722                          |   | — |   | 1,722   |   | — |   | (5,536       | )      |
| Total                           | $                                              | 4,522                          | $      | — | $      | 4,522   | $      | 254     | $      | (16,306      | )      |
|                            |                                           |                           |   |    |   |    |   |    |   |         |   |

|                            |                                           |                           |   |    |   |    |   |    |   |         |   |
|---------------------------------|------------------------------------------------|--------------------------------|--------|---------|--------|---------|--------|---------|--------|--------------|--------|
|                            | Fair Value Measurement at Reporting Date Using |
|                            |                                           | December 27, 2009CarryingValue |   | Level 1 |   | Level 2 |   | Level 3 |   | Total Losses |   |
|                            |                                           |                           |   |    |   |    |   |    |   |         |   |
| Long-lived assets held and used | $                                              | 4,087                          | $      | — | $      | 3,575   | $      | 512     | $      | (10,250      | )      |
| Long-lived assets held for sale |                                           | 1,128                          |   | — |   | 1,128   |   | — |   | (694         | )      |
| Total                           | $                                              | 5,215                          | $      | — | $      | 4,703   | $      | 512     | $      | (10,944      | )      |

| 4. | Intangible Assets |
|----|-------------------|

----

|  Exitand Disposal Liability                       |    |          |
|--------------------------------------------------------|---------|---------------|
|  Balance, December 27, 2009                       |  $ |  — |
|  Exit and Disposal Costs- Continuing Operations   |    |  4.3     |
|  Exit and Disposal Costs- Discontinued Operations |    |  1.1     |
|  Payments                                         |  ( | 0.6)     |
|  Balance, December 26, 2010                       |  $ |  4.8     |

|                                                                                                          | Fiscal Year End |
|---------------------------------------------------------------------------------------------------------------|-----------------|
|                                                                                                          |            | December 26, |   |   | December 27, |   |   |   | December 28, |   |
|                                                                                                          |            | 2010 |   |   | 2009 |   |   |   | 2008 |   |
|                                                                                                          | (in thousands)  |
| Supply Chain Changes:                                                                                         |            |   |   |   |   |   |   |   |   |   |
|      Impairments, exit and disposal costs                                            | $               | 1,349 |   | $ | 15 |   |   | $ | 24 |   |
|      Severance and retention costs, legal costs and transition costs                 |            | — |   |   | 380 |   |   |   | 88 |   |
|         Total charges related to supply chain changes                 |            | 1,349 |   |   | 395 |   |   |   | 112 |   |
|                                                                                                          |            |   |   |   |   |   |   |   |   |   |
| Restaurant impairments, exit and disposal costs                                                               |            | 13,094 |   |   | 7,332 |   |   |   | 12,629 |   |
| Other impairments                                                                                             |            | 437 |   |   | 695 |   |   |   | 540 |   |
| Other disposals, net                                                                                          |            | 118 |   |   | 15 |   |   |   | (505 | ) |
|         Total impairment, disposal, and restructuring charges, net    |            | 14,998 |   |   | 8,437 |   |   |   | 12,776 |   |
|                                                                                                          |            |   |   |   |   |   |   |   |   |   |
| Impairment, exit and disposal costs – discontinued operations                                           |            | 5,913 |   |   | 2,918 |   |   |   | 4,213 |   |
| Impairment and supply chain changes paid or accrued                                                           |            | (364 | ) |   | (380 | ) |   |   | (112 | ) |
| Other non-cash items                                                                                          |            | — |   |   | — |   |   |   | 11 |   |
|         Total non-cash impairment, disposal and restructuring charges | $               | 20,547 |   | $ | 10,975 |   |   | $ | 16,888 |   |

----

|                                                   |   |      |   |   |     |   | Weighted     |   |   |      |   |
|--------------------------------------------------------|--------|-----------|--------|--------|----------|--------|--------------|--------|--------|-----------|--------|
|                                                   |   |      |   |   | Weighted |   | Average      |   |   |      |   |
|                                                   |   |      |   |   | Average  |   | Remaining    |   |   | Aggregate |   |
|                                                   |   | Number of |   |   | Exercise |   | Contractual  |   |   | Intrinsic |   |
|                                                   |   | Options   |   |   | Price    |   | Life (Years) |   |   | Value     |   |
|                                                   |   |      |   |   |     |   |         |   |   |      |   |
| Options outstanding at December 27, 2009               |   | 2,317,660 |   | $      | 10.93    |   | 6.05         |   | $      | 4,286,833 |   |
| Granted                                                |   | 212,500   |   |   | 6.55     |   |         |   |   |      |   |
| Exercised                                              |   | (5,745    | )      |   | 2.74     |   |         |   |   |      |   |
| Forfeited                                              |   | (566,264  | )      |   | 3.91     |   |         |   |   |      |   |
| Expired                                                |   | (257,065  | )      |   | 15.18    |   |         |   |   |      |   |
| Options outstanding at December 26, 2010               |   | 1,701,086 |   | $      | 12.10    |   | 3.50         |   | $      | 2,987,647 |   |
|                                                   |   |      |   |   |     |   |         |   |   |      |   |
| Options vested and exercisable at December 26, 2010    |   | 818,395   |   | $      | 19.95    |   | 1.82         |   | $      | 96,682    |   |
| Options unvested expected to vest at December 26, 2010 |   | 829,934   |   | $      | 4.77     |   | 4.97         |   | $      | 2,765,111 |   |

|                                                                        | 2010   |   | 2009   |   |
|-----------------------------------------------------------------------------|--------|--------|--------|--------|
| Risk-free rate                                                              |   | 1.2    | %      |   |   | 1.9 | % |   |
| Expected term (years)                                                       |   | 3.9    |   |   |   | 5.1 |   |   |
| Expected dividend yield                                                     |   | 0.0    | %      |   |   | 0.0 | % |   |
| Volatility                                                                  |   | 88.5   | %      |   |   | 67.6 | % |   |
| Weighted-average Black-Scholes-Merton fair value per share at date of grant | $      | 4.11   |   |   | $ | 2.57 |   |   |

----

|                                                     |   |       |   |   |       |   |
|----------------------------------------------------------|--------|------------|--------|--------|------------|--------|
|                                                     |   | Number of  |   |   | Weighted   |   |
|                                                     |   | Restricted |   |   | Average    |   |
|                                                     |   | Stock      |   |   | Grant Date |   |
|                                                     |   | Awards     |   |   | Fair Value |   |
|                                                     |   |       |   |   |       |   |
| Restricted Stock Awards outstanding at December 27, 2009 |   | 546,406    |   | $      | 11.73      |   |
|    Granted                                |   | 203,020    |   |   | 7.85       |   |
|    Vested                                 |   | (264,448   | )      |   | 12.03      |   |
|    Forfeited                              |   | (108,994   | )      |   | 11.67      |   |
| Restricted Stock Awards outstanding at December 26, 2010 |   | 375,984    |   | $      | 9.45       |   |

----

|                                                                                                    | (in thousands)  |
|---------------------------------------------------------------------------------------------------------|----------------------|
|                                                                                                    |                 |   |   |
| Asset Retirement Obligation as of December 30, 2007                                                | $                    | 679 |   |
|        Accretion expense on the present-valued liability             |                 | 30 |   |
|        Property additions requiring recognition of a liability       |                 | 6 |   |
| Asset Retirement Obligation as of December 28, 2008                                                | $                    | 715 |   |
| Accretion expense on the present-valued liability                                                       |                 | 30 |   |
| Property additions requiring recognition of a liability                                                 |                 | 1 |   |
| Asset Retirement Obligation as of December 27, 2009                                                | $                    | 746 |   |
|         Accretion expense on the present-valued liability       |                 | 29 |   |
|         Property additions requiring recognition of a liability |                 | — |   |
|         Reversal for closed locations                           |                 | (101 | ) |
| Asset Retirement Obligation as of December 26, 2010                                                     | $                    | 674 |   |

|                                           |   | December 26,   |   |   | December 27,                                                                    |   |
|------------------------------------------------|--------|----------------|--------|--------|---------------------------------------------------------------------------------|--------|
|                                           |   | 2010           |   |   | 2009                                                                            |   |
|                                           |   | (in thousands) |   |
|                                           |   |           |   |   |                                                                            |   |
| Land and improvements                          | $      | 69,342         |   | $      |             72,263  |   |
| Buildings and improvements                     |   | 141,742        |   |   | 145,876                                                                         |   |
| Furniture, fixtures and equipment              |   | 285,831        |   |   | 289,921                                                                         |   |
| Leasehold improvements                         |   | 193,115        |   |   | 203,582                                                                         |   |
| Equipment under capitalized leases             |   | 6,935          |   |   | 8,884                                                                           |   |
| Property leased to others                      |   | —        |   |   | 1,004                                                                           |   |
| Construction in progress                       |   | 2,626          |   |   | 2,138                                                                           |   |
|                                           |   | 699,592        |   |   | 723,668                                                                         |   |
| Less accumulated depreciation and amortization |   | (379,580       | )      |   | (356,818                                                                        | )      |
|                                           | $      | 320,011        |   | $      |             366,850 |   |

|                       |   |   | December 26,   |   |   | December 27,                                                                                    |   |
|----------------------------|--------|--------|----------------|--------|--------|-------------------------------------------------------------------------------------------------|--------|
|                       |   |   | 2010           |   |   | 2009                                                                                            |   |
|                       |   |   | (in thousands) |   |
|                       |   |   |           |   |   |                                                                                            |   |
| Land                       |   | $      | 3,086          |   | $      |         1,308                                           |   |
| Buildings and improvements |   |   | 722            |   |   | 535                                                                                             |   |
| Other assets               |   |   | 1,039          |   |   | 94                                                                                              |   |
|                       |   | $      | 4,847          |   | $      |                1,937 |   |

----

|                                           |   | December 26,   |   |   | December 27,                                                                        |   |
|------------------------------------------------|--------|----------------|--------|--------|-------------------------------------------------------------------------------------|--------|
|                                           |   | 2010           |   |   | 2009                                                                                |   |
|                                           |   | (in thousands) |   |
|                                           |   |           |   |   |                                                                                |   |
| Non-qualified deferred compensation plan asset | $      | 3,660          |   | $      |              4,134 |   |
| Liquor licenses                                |   | 2,403          |   |   | 3,504                                                                               |   |
| Prepaid interest and finance costs             |   | 3,769          |   |   | 3,692                                                                               |   |
| Other assets                                   |   | 4,209          |   |   | 2,075                                                                               |   |
|                                           | $      | 14,041         |   | $      |            13,405            |   |

|                       |   | December 26,   |   |   | December 27,                                                             |   |
|----------------------------|--------|----------------|--------|--------|--------------------------------------------------------------------------|--------|
|                       |   | 2010           |   |   | 2009                                                                     |   |
|                       |   | (in thousands) |   |
|                       |   |           |   |   |                                                                     |   |
| Accrued insurance expenses | $      | 12,124         |   | $      |            10,873 |   |
| Accrued employee benefits  |   | 2,468          |   |   | 2,599                                                                    |   |
| Accrued interest           |   | 1,998          |   |   | 2,159                                                                    |   |
| Accrued utilities          |   | 2,675          |   |   | 2,818                                                                    |   |
| Accrued legal              |   | 349            |   |   | 445                                                                      |   |
| Accrued other expenses     |   | 4,700          |   |   | 2,552                                                                    |   |
|                       | $      | 24,314         |   | $      |            21,446 |   |

----

|                                           |   |   | December 26,   |   |   | December 27,                                                  |   |
|------------------------------------------------|--------|--------|----------------|--------|--------|---------------------------------------------------------------|--------|
|                                           |   |   | 2010           |   |   | 2009                                                          |   |
|                                           |   |   | (in thousands) |   |
|                                           |   |   |           |   |   |                                                          |   |
| 9% senior subordinated notes due 2013          |   | $      | 115,205        |   | $      |          125,000 |   |
| Financing arrangements                         |   |   | 142            |   |   | 320                                                           |   |
| Note payable to Stoney River Managing Partners |   |   | 208            |   |   | 352                                                           |   |
| Secured mortgage note payable                  |   |   | —        |   |   | 17                                                            |   |
|                                           |   | $      | 115,555        |   | $      |          125,689 |   |
| Fair value adjustments on hedged debt          |   |   | 1,894          |   |   | 2,770                                                         |   |
| Less current portion of long-term debt         |   |   | (285           | )      |   | (338                                                          | )      |
| Long-term debt, less current portion           |   | $      | 117,164        |   | $      |          128,121 |   |

----

|                                              |   | December 26,   |   |   | December 27,                                                             |   |
|---------------------------------------------------|--------|----------------|--------|--------|--------------------------------------------------------------------------|--------|
|                                              |   | 2010           |   |   | 2009                                                                     |   |
|                                              |   | (in thousands) |   |
|                                              |   |           |   |   |                                                                     |   |
| Deferred gain on sale leaseback transactions      | $      | 13,613         |   | $      |            14,669 |   |
| Deferred rent                                     |   | 19,160         |   |   | 21,111                                                                   |   |
| Nonqualified deferred compensation plan liability |   | 3,660          |   |   | 4,134                                                                    |   |
| Liability for uncertain tax positions             |   | 936            |   |   | 3,290                                                                    |   |
| Other long-term liabilities                       |   | 9,484          |   |   | 5,629                                                                    |   |
|                                              | $      | 46,853         |   | $      |            48,833 |   |

|                                                  |     | Capitalized    |   |     |      |   |
|-------------------------------------------------------|----------|----------------|--------|----------|-----------|--------|
|                                                  |     | Equipment      |   |     | Operating |   |
|                                                  |     | Leases         |   |     | Leases    |   |
|                                                  |     | (in thousands) |   |
|                                                  |     |           |   |     |      |   |
| 2011                                                  |   $ | 1,458          |   |   $ | 33,224    |   |
| 2012                                                  |     | —        |   |     | 32,651    |   |
| 2013                                                  |     | —        |   |     | 31,645    |   |
| 2014                                                  |     | —        |   |     | 29,757    |   |
| 2015                                                  |     | —        |   |     | 27,032    |   |
| Thereafter                                            |     | —        |   |     | 120,810   |   |
| Total minimum lease payments                          | $        | 1,458          |   | $        | 275,119   |   |
| Less amount representing interest                     |     | (33            | )      |     |      |   |
| Net minimum lease payments                            |     | 1,425          |   |     |      |   |
| Less current portion                                  |     | 1,425          |   |     |      |   |
| Capitalized lease obligations, net of current portion | $        | —        |   |     |      |   |

|               |   | 2010           |   |   | 2009   |   |   | 2008   |   |
|--------------------|--------|----------------|--------|--------|--------|--------|--------|--------|--------|
|               |   | (in thousands) |   |
| Minimum rentals    | $      | 31,585         |   | $      | 31,389 |   | $      | 31,328 |   |
| Contingent rentals |   | 188            |   |   | 238    |   |   | 286    |   |
|               | $      | 31,773         |   | $      | 31,627 |   | $      | 31,614 |   |

----

|                                                                          |   | 2010                           |   |   |   | 2009        |   |   |   | 2008   |   |
|-------------------------------------------------------------------------------|--------|--------------------------------|--------|--------|--------|-------------|--------|--------|--------|--------|--------|
|                                                                          |   | (in thousands)                 |   |
| Income tax (benefit) expense attributable to:                                 |   |                           |   |   |   |        |   |   |   |   |   |
| Loss from continuing operations                                               | $      | (1,849                         | )      |   | $      | 2,254  |   |   | $      | 15,115 |   |
| Loss from discontinued operations                                             |   | (10                            | )      |   |   | (106        | )      |   |   | (292   | )      |
| Shareholders’ equity, tax benefit derived from non-qualified stock |   |                           |   |   |   |        |   |   |   |   |   |
|      options exercised                               |   | —                        |   |   |   | —     |   |   |   | (177   | )      |
| Total income tax (benefit) expense                                            | $      |     (1,859 | )      |   | $      | 2,148       |   |   | $      | 14,646 |   |
|                                                                          |   |                           |   |   |   |        |   |   |   |   |   |

|                                                    |   | 2010           |   |   | 2009  |   |   | 2008   |   |
|---------------------------------------------------------|--------|----------------|--------|--------|-------|--------|--------|--------|--------|
|                                                    |   | (in thousands) |   |
| Current                                                 | $      | (4,332         | )      | $      | 2,892 |   | $      | (7,758 | )      |
| Deferred                                                |   | 2,483          |   |   | (638  | )      |   | 22,873 |   |
| Income tax (benefit) expense from continuing operations | $      | (1,849         | )      | $      | 2,254 |   | $      | 15,115 |   |
| Income tax benefit from discontinued operations         | $      | (10            | )      | $      | (106  | )      | $      | (292   | )      |

|                                           | 2010   |   | 2009   |   | 2008   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                           |   |   |   |   |   |   |
| Federal statutory rate                         | 35.0   | %      | 35.0   | %      | 35.0   | %      |
| Increase (decrease) in taxes due to:      |   |   |   |   |   |   |
| State income taxes, net of federal tax benefit | 0.4    |   | (80.2  | )      | (1.0   | )      |
| Tax credits, primarily FICA tip credits        | 17.2   |   | 583.8  |   | 4.3    |   |
| Stock compensation expense                     | (1.2   | )      | (217.2 | )      | (0.6   | )      |
| Valuation allowance                            | (54.7  | )      | (545.4 | )      | (52.6  | )      |
| Other                                          | 9.7    |   | (22.9  | )      | 1.5    |   |
|                                           | 6.4    | %      | (246.9 | )%     | (13.4  | )%     |

|                                                                                    |   | December 26,   |   |   | December 27,                                                                         |   |
|-----------------------------------------------------------------------------------------|--------|----------------|--------|--------|--------------------------------------------------------------------------------------|--------|
|                                                                                    |   | 2010           |   |   | 2009                                                                                 |   |
|                                                                                    |   | (in thousands) |   |
| Deferred tax assets:                                                                    |   |           |   |   |                                                                                 |   |
| Workers’ compensation, general liability, and employee health insurance accruals  | $      | 4,821          |   | $      | 4,023                                                                                |   |
| Accrued compensation                                                                    |   | 3,749          |   |   | 4,333                                                                                |   |
| Restricted stock                                                                        |   | 1,133          |   |   | 1,046                                                                                |   |
| Asset impairment and exit cost                                                          |   | 19,601         |   |   | 12,640                                                                               |   |
| Property and equipment, principally due to differences in depreciation and amortization |   | 7,690          |   |   | 4,963                                                                                |   |
| Tax credits, primarily FICA tip credits                                                 |   | 30,783         |   |   | 21,364                                                                               |   |
| Federal net operating loss and state carry-forwards                                     |   | 5,440          |   |   | 4,052                                                                                |   |
| Goodwill                                                                                |   | 17,696         |   |   | 20,331                                                                               |   |
| Other                                                                                   |   | 1,165          |   |   | 2,469                                                                                |   |
|        Total gross deferred tax assets               |   | 92,078         |   |   | 75,221                                                                               |   |
| Deferred tax asset valuation allowance                                                  |   | (90,887        | )      |   | (72,263                                                                              | )      |
| Total net deferred tax assets                                                           |   | 1,191          |   |   | 2,958                                                                                |   |
| Deferred tax liabilities:                                                               |   |           |   |   |                                                                                 |   |
| Trademark intangible                                                                    |   | 5,251          |   |   | 4,535                                                                                |   |
|        Total gross deferred tax liabilities          |   | 5,251          |   |   | 4,535                                                                                |   |
| Net deferred tax liability                                                              | $      | (4,060         | )      | $      |              (1,577 | )      |

----

|                                         |   | 2010           |   |   | 2009                                 |   |
|----------------------------------------------|--------|----------------|--------|--------|--------------------------------------|--------|
|                                         |   | (in thousands) |   |
|                                         |   |           |   |   |                                 |   |
| Deferred income taxes, non-current liability | $      | (4,034         | )      | $      |      (1,386 | )      |
| Deferred income taxes, current liability     |   | (26            | )      |   | (191                                 | )      |
|                                         | $      | (4,060         | )      | $      |      (1,577 | )      |

----

|                                                          |   | 2010           |   |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------|--------|----------------|--------|--------|--------|--------|--------|--------|--------|
|                                                          |   | (in thousands) |   |
| Beginning balance                                             | $      | 3,355          |   | $      | 3,398  |   | $      | 8,364  |   |
|      Gross prior year increases      |   | 271            |   |   | 82     |   |   | 463    |   |
|      Gross prior year decreases      |   | (1,521         | )      |   | (1,033 | )      |   | (5,999 | )      |
|      Gross current year increases    |   | 420            |   |   | 1,732  |   |   | 1,176  |   |
|      Settlements                     |   | (126           | )      |   | (21    | )      |   | (162   | )      |
|      Lapse of statute of limitations |   | (706           | )      |   | (803   | )      |   | (444   | )      |
| Ending balance                                                | $      | 1,693          |   | $      | 3,355  |   | $      | 3,398  |   |
|                                                          |   |           |   |   |   |   |   |   |   |

----

|                                                                             |   | 2010    |   |   | 2009   |   |   | 2008     |   |
|----------------------------------------------------------------------------------|--------|---------|--------|--------|--------|--------|--------|----------|--------|
| (in thousands, except per share data)                                            |   |    |   |   |   |   |   |     |   |
|                                                                             |   |    |   |   |   |   |   |     |   |
| Loss from Continuing Operations                                                  | $      | (27,285 | )      | $      | (3,167 | )      | $      | (127,535 | )      |
| Loss from Discontinued Operations, Net                                           |   | (7,630  | )      |   | (4,158 | )      |   | (4,962   | )      |
| Net Loss                                                                         | $      | (34,915 | )      | $      | (7,325 | )      | $      | (132,497 | )      |
|                                                                             |   |    |   |   |   |   |   |     |   |
| Weighted average  basic and diluted common shares outstanding          |   | 21,211  |   |   | 20,826 |   |   | 20,898   |   |
|                                                                             |   |    |   |   |   |   |   |     |   |
| Net Loss Attributable to Common Shareholders – basic and diluted:          |   |    |   |   |   |   |   |     |   |
|        Loss from Continuing Operations        | $      | (1.29   | )      | $      | (0.15  | )      | $      | (6.10    | )      |
|        Loss from Discontinued Operations, Net |   | (0.36   | )      |   | (0.20  | )      |   | (0.24    | )      |
| Net Loss Attributable to Common Shareholders                                     | $      | (1.65   | )      | $      | (0.35  | )      | $      | (6.34    | )      |

|                                                                            |   | 2010           |   |   | 2009    |   |   | 2008   |   |
|---------------------------------------------------------------------------------|--------|----------------|--------|--------|---------|--------|--------|--------|--------|
|                                                                            |   | (in thousands) |   |
|                                                                            |   |           |   |   |    |   |   |   |   |
| Cash paid for interest (1)                                                      | $      | 11,673         |   | $      | 8,567   |   | $      | 11,341 |   |
| Income taxes paid (refunded), net                                               |   | (496           | )      |   | 500     |   |   | (2,519 | )      |
| Other non-cash transactions:                                                    |   |           |   |   |    |   |   |   |   |
| Transfer of assets between assets held-for-sale and property and equipment, net |   | 3,452          |   |   | 2,056   |   |   | 3,308  |   |
| Change in fair value of hedged debt                                             |   | (876           | )      |   | (718    | )      |   | 2,298  |   |
| Financed maintenance agreements                                                 |   | —        |   |   | — |   |   | 531    |   |
| Additions to capitalized lease obligations                                      | $      | —        |   | $      | — |   | $      | 479    |   |

| (1)   | Cash paid for interest in 2009 is net of the $3.5 million received for termination of the swap agreement. (See Note 12) |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

----

----

|                                              |                                          | FirstQuarter (1) |   |   | SecondQuarter (2) |   |   | ThirdQuarter (3) |   |   | FourthQuarter (4) |   |
|--------------------------------------------------------|-----------------------------------------------|------------------|--------|--------|-------------------|--------|--------|------------------|--------|--------|-------------------|--------|
|                                                   | (dollars in thousands, except per share data) |             |
| 2010                                                   |                                          |             |   |   |              |   |   |             |   |   |              |   |
| Revenues                                               | $                                             | 267,100          |   | $      | 190,917           |   | $      | 188,642          |   | $      | 183,450           |   |
| Earnings (loss) from operations                        | $                                             | 3,231            |   | $      | (237              | )      | $      | (5,163           | )      | $      | (15,160           | )      |
| Net Loss                                               | $                                             | (4,344           | )      | $      | (2,523            | )      | $      | (7,438           | )      | $      | (20,610           | )      |
| Net Loss per share(5):                                 |                                          |             |   |   |              |   |   |             |   |   |              |   |
|        Basic        | $                                             | (0.21            | )      | $      | (0.12             | )      | $      | (0.35            | )      | $      | (0.97             | )      |
|        Diluted      | $                                             | (0.21            | )      | $      | (0.12             | )      | $      | (0.35            | )      | $      | (0.97             | )      |
| Company-owned restaurants in operation, end of quarter |                                          | 358              |   |   | 358               |   |   | 357              |   |   | 338               |   |
|                                                   |                                          |             |   |   |              |   |   |             |   |   |              |   |
| 2009                                                   |                                          |             |   |   |              |   |   |             |   |   |              |   |
| Revenues                                               | $                                             | 286,638          |   | $      | 202,733           |   | $      | 190,931          |   | $      | 185,971           |   |
| Earnings (loss) from operations                        | $                                             | 12,166           |   | $      | 5,451             |   | $      | 687              |   | $      | (7,657            | )      |
| Net earnings (loss)                                    | $                                             | 7,141            |   | $      | 2,894             |   | $      | (2,146           | )      | $      | (15,215           | )      |
| Net Loss per share(5):                                 |                                          |             |   |   |              |   |   |             |   |   |              |   |
|        Basic        | $                                             | 0.34             |   | $      | 0.14              |   | $      | (0.10            | )      | $      | (0.72             | )      |
|        Diluted      | $                                             | 0.34             |   | $      | 0.14              |   | $      | (0.10            | )      | $      | (0.72             | )      |
| Company-owned restaurants in operation, end of quarter |                                          | 359              |   |   | 359               |   |   | 361              |   |   | 362               |   |

|  (1) | During the first quarter of 2010, the Company recorded impairment and disposal charges of $3.2 million, of which $2.5 million is related to the impairment of two O’Charley’s restaurants. The remaining $0.6 million represented exit and disposal costs associated with lease obligations at closed restaurants and other minor impairments.  During the first quarter of 2009, the Company recorded additional impairment charges related to its airplane of $0.3 million that was later sold during fiscal 2009. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (2) | During the second quarter of 2010, the Company recorded impairment and disposal charges of $0.1 million which represented insurance deductibles related to flood damage at the Company’s Clarksville, Tennessee location. During the second quarter of 2009, the Company recorded impairment charges with respect to three O’Charley’s restaurants and other minor impairments resulting in impairment changes of $1.5 million. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (3) | During the third quarter of 2010, the Company recorded impairment and disposal charges of $2.5 million. This amount related to the impairment of four O’Charley’s restaurants, and other minor impairments.  During the third quarter of 2009, the Company recorded impairment charges of $0.3 million for one O’Charley’s restaurant, charges related to the closing of our Bellingham, MA distribution facility and other minor impairment charges of $0.1 million. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (4) | During the fourth quarter of 2010, the Company recorded impairment and disposal charges of $9.2 million. $6.4 million of this amount related to ten O’Charley’s restaurants, seven Ninety Nine restaurants and three surplus properties. In addition, $2.8 million of exit and disposal costs were incurred due to the closing of nine restaurants and future lease obligations for the Bellingham, MA distribution center.  During the fourth quarter of 2009, the Company recorded impairment charges of $6.3 million with respect to four O’Charley’s restaurants, six Ninety Nine restaurants and two Stoney River restaurants. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | During the fiscal quarter ended December 26, 2010, the Company closed 19 underperforming restaurants, of which nine have been classified as discontinued operations. The results of operations for the quarter ended December 26, 2010, includes a charge of $4.2 million, net of taxes, or $0.20 per basic and diluted share, related to the closure of these nine restaurants. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)  | Quarterly earnings (loss) per share calculations may not add to reported year-to-date earnings (loss) per share due to share repurchases and other changes in weighted shares outstanding. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                               |   |     |    |   | Payments Due by Period |    |
|------------------------------------|--------|----------|---------|--------|------------------------|---------|
|                               |   |     |    |   | Less                   |    |   |   |   |   |   |   | More |   |
|                               |   |     |    |   | than                   |    |   |   |   |   |   |   | Than |   |
|                               |   | Total    |    | 1 Yr   |                   | 1-3 Yrs |   | 3-5 Yrs |   | 5 Years |   |
|                               |   |     |    |   |                   |    |   |   |   |   |   |   |   |   |   |   |
| Unconditional purchase obligations |   |   $ | 286,342 |   |   $               | 146,081 |   |   $ | 112,830 |   |   $ | 27,431 |   |   $ | — |   |
|                               |   |     |    |   |                   |    |   |   |   |   |   |   |   |   |   |   |

----

----

|                                                                                                               |   | Parent Company |           | Subsidiary Guarantors |   | Minor Subsidiaries and Consolidating Adjustments |   | Consolidated |     |
|--------------------------------------------------------------------------------------------------------------------|--------|----------------|----------------|-----------------------|--------|--------------------------------------------------|--------|--------------|----------|
|                                                                                                               |   |           | (in thousands) |                  |
| ASSETS                                                                                                             |   |           |           |                  |   |                                             |   |         |     |   |   |   |   |
| Current Assets (Liabilities):                                                                                      |   |           |           |                  |   |                                             |   |         |     |   |   |   |   |
|     Cash and cash equivalents                                                                  |   | $              | 1,744          |                  | $      | 27,949                                           |   | $            | —  |   | $ | 29,693 |   |
|     Trade accounts receivable, less allowance for doubtful                                     |   |           |           |                  |   |                                             |   |         |     |   |   |   |   |
|         accounts                                                           |   |           | 6,659          |                  |   | 8,490                                            |   |         | (218     | ) |   | 14,931 |   |
|     Intercompany (payable) receivable                                                          |   |           | (277,713       | )                     |   | 247,227                                          |   |         | 30,486   |   |   | — |   |
|     Inventories                                                                                |   |           | 4,045          |                  |   | 5,026                                            |   |         | —  |   |   | 9,071 |   |
|     Assets held for sale                                                                       |   |           | 3,828          |                  |   | 1,019                                            |   |         | —  |   |   | 4,847 |   |
|     Other current assets                                                                       |   |           | 1,733     |                  |   | 2,468                                            |   |         | —  |   |   | 4,201 |   |
|         Total current (liabilities) assets                                 |   |           | (259,704       | )                     |   | 292,179                                          |   |         | 30,268   |   |   | 62,743 |   |
| Property and equipment, net                                                                                        |   |           | 226,929        |                  |   | 93,082                                           |   |         | —  |   |   | 320,011 |   |
| Trade names and other intangible assets                                                                            |   |           | 25             |                  |   | 25,921                                           |   |         | —  |   |   | 25,946 |   |
| Other assets                                                                                                       |   |           | 210,649        |                  |   | 29,624                                           |   |         | (226,232 | ) |   | 14,041 |   |
| Total Assets (Liabilities)                                                                                         |   | $              | 177,899        |                  | $      | 440,806                                          |   | $            | (195,964 | ) | $ | 422,741 |   |
|                                                                                                               |   |           |           |                  |   |                                             |   |         |     |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)                                                               |   |           |           |                  |   |                                             |   |         |     |   |   |   |   |
| Current Liabilities:                                                                                               |   |           |           |                  |   |                                             |   |         |     |   |   |   |   |
|     Trade accounts payable                                                                     |   | $              | 7,502          |                  | $      | 80                                               |   | $            | 629      |   | $ | 8,211 |   |
|     Accrued payroll and related expenses                                                       |   |           | 10,630         |                  |   | 4,009                                            |   |         | —  |   |   | 14,639 |   |
|     Accrued expenses                                                                           |   |           | 17,708         |                  |   | 6,824                                            |   |         | (218     | ) |   | 24,314 |   |
|     Deferred revenue                                                                           |   |           | —        |                  |   | 18,213                                           |   |         | (629     | ) |   | 17,584 |   |
|     Federal, state and local taxes (receivable) payable                                        |   |           | (14,382        | )                     |   | 24,380                                           |   |         | —  |   |   | 9,998 |   |
|     Current portion of long-term debt and capitalized lease    obligations |   |           | 1,567          |                  |   | 143                                              |   |         | —  |   |   | 1,710 |   |
|          Total current liabilities                                    |   |           | 23,025         |                  |   | 53,649                                           |   |         | (218     | ) |   | 76,456 |   |
| Deferred income taxes                                                                                              |   |           | 4,034          |                  |   | —                                          |   |         | —  |   |   | 4,034 |   |
| Other liabilities                                                                                                  |   |           | 25,901         |                  |   | 20,852                                           |   |         | 100      |   |   | 46,853 |   |
| Long-term debt, less current portion                                                                               |   |           | 141,613        |                  |   | 207                                              |   |         | (24,656  | ) |   | 117,164 |   |
| Shareholders’ Equity (Deficit):                                                                              |   |           |           |                  |   |                                             |   |         |     |   |   |   |   |
|      Common stock                                                                         |   |           | 123,171        |                  |   | 343,431                                          |   |         | (301,055 | ) |   | 165,547 |   |
|      (Accumulated deficit) retained earnings                                              |   |           | (139,845       | )                     |   | 22,667                                           |   |         | 129,865  |   |   | 12,687 |   |
|           Total shareholders’ equity (deficit)             |   |           | (16,674        | )                     |   | 366,098                                          |   |         | (171,190 | ) |   | 178,234 |   |
| Total Liabilities and Shareholders’ Equity (Deficit)                                                         |   | $              | 177,899        |                  | $      | 440,806                                          |   | $            | (195,964 | ) | $ | 422,741 |   |

----

|                                                                                                               |   | Parent Company |           | Subsidiary Guarantors |   | Minor Subsidiaries and Consolidating Adjustments |    | Consolidated |     |
|--------------------------------------------------------------------------------------------------------------------|--------|----------------|----------------|-----------------------|--------|--------------------------------------------------|---------|--------------|----------|
|                                                                                                               |   |           | (in thousands) |                  |
| ASSETS                                                                                                             |   |           |           |                  |   |                                             |    |         |     |   |   |   |   |
| Current Assets (Liabilities):                                                                                      |   |           |           |                  |   |                                             |    |         |     |   |   |   |   |
|     Cash and cash equivalents                                                                  |   | $              | 2,127          |                  | $      | 19,753                                           |    | $            | —  |   | $ | 21,880 |   |
|     Trade accounts receivable, less allowance for doubtful                                     |   |           |           |                  |   |                                             |    |         |     |   |   |   |   |
|         accounts                                                           |   |           | 8,280          |                  |   | 9,139                                            |    |         | (210     | ) |   | 17,209 |   |
|     Intercompany (payable) receivable                                                          |   |           | (257,253       | )                     |   | 226,774                                          |    |         | 30,479   |   |   | — |   |
|     Inventories                                                                                |   |           | 4,663          |                  |   | 5,931                                            |    |         | —  |   |   | 10,594 |   |
|     Assets held for sale                                                                       |   |           | 809            |                  |   | 1,128                                            |    |         | —  |   |   | 1,937 |   |
|     Other current assets                                                                       |   |           | 1,961          |                  |   | 2,462                                            |    |         | 11       |   |   | 4,434 |   |
|         Total current (liabilities) assets                                 |   |           | (239,413       | )                     |   | 265,187                                          |    |         | 30,280   |   |   | 56,054 |   |
| Property and equipment, net                                                                                        |   |           | 256,799        |                  |   | 110,051                                          |    |         | —  |   |   | 366,850 |   |
| Trade names and other intangible assets                                                                            |   |           | 25             |                  |   | 25,921                                           |    |         | —  |   |   | 25,946 |   |
| Other assets                                                                                                       |   |           | 208,619        |                  |   | 30,042                                           |    |         | (225,256 | ) |   | 13,405 |   |
| Total Assets (Liabilities)                                                                                         |   | $              | 226,030        |                  | $      | 431,201                                          |    | $            | (194,976 | ) | $ | 462,255 |   |
|                                                                                                               |   |           |           |                  |   |                                             |    |         |     |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)                                                               |   |           |           |                  |   |                                             |    |         |     |   |   |   |   |
| Current Liabilities:                                                                                               |   |           |           |                  |   |                                             |    |         |     |   |   |   |   |
|     Trade accounts payable                                                                     |   | $              | 4,484          |                  | $      | (12                                              | )  | $            | 629      |   | $ | 5,101 |   |
|     Accrued payroll and related expenses                                                       |   |           | 12,052         |                  |   | 3,992                                            |    |         | —  |   |   | 16,044 |   |
|     Accrued expenses                                                                           |   |           | 16,287         |                  |   | 5,365                                            |    |         | (206     | ) |   | 21,446 |   |
|     Deferred revenue                                                                           |   |           | —        |                  |   | 18,598                                           |    |         | (629     | ) |   | 17,969 |   |
|     Federal, state and local taxes (receivable) payable                                        |   |           | (14,234        | )                     |   | 24,693                                           |    |         | —  |   |   | 10,459 |   |
|     Current portion of long-term debt and capitalized lease    Obligations |   |           | 1,835          |                  |   | 144                                              |    |         | —  |   |   | 1,979 |   |
|          Total current liabilities                                    |   |           | 20,424         |                  |   | 52,780                                           |    |         | (206     | ) |   | 72,998 |   |
| Deferred income taxes                                                                                              |   |           | 1,386          |                  |   | —                                          |    |         | —  |   |   | 1,386 |   |
| Other liabilities                                                                                                  |   |           | 28,234         |                  |   | 20,499                                           |    |         | 100      |   |   | 48,833 |   |
| Long-term debt, less current portion                                                                               |   |           | 151,272        |                  |   | 528                                              |    |         | (23,679  | ) |   | 128,121 |   |
| Capitalized lease obligations, less current portion                                                                |   |           | 1,548          |                  |   | 250                                              |    |         | —  |   |   | 1,798 |   |
| Shareholders’ Equity (Deficit):                                                                              |   |           |           |                  |   |                                             |    |         |     |   |   |   |   |
|      Common stock                                                                         |   |           | 119,138        |                  |   | 343,431                                          |    |         | (301,055 | ) |   | 161,514 |   |
|      (Accumulated deficit) retained earnings                                              |   |           | (95,972        | )                     |   | 13,713                                           |    |         | 129,864  |   |   | 47,605 |   |
|           Total shareholders’ equity (deficit)             |   |           | 23,166         |                  |   | 357,144                                          |    |         | (171,191 | ) |   | 209,119 |   |
| Total Liabilities and Shareholders’ Equity (Deficit)                                                         |   | $              | 226,030        |                  | $      | 431,201                                          |    | $            | (194,976 | ) | $ | 462,255 |   |

----

|                                                                                                                                                        |           | Parent Company |    | Subsidiary Guarantors |   | Minor Subsidiaries and Consolidating  Adjustments |   | Consolidated |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|----------------|---------|-----------------------|--------|-------------------------------------------------------------|--------|--------------|---------|
|                                                                                                                                                        | (in thousands) |
| Revenues:                                                                                                                                                   |           |           |    |                  |   |                                                        |   |         |    |   |   |   |   |
|     Restaurant sales                                                                                                                    |           | $              | 472,718 |                  | $      | 342,587                                                     |   | $            | 13,677  |   | $ | 828,982 |   |
|     Franchise and other revenue                                                                                                         |           |           | 888     |                  |   | 239                                                         |   |         | — |   |   | 1,127 |   |
|                                                                                                                                                        |           |           | 473,606 |                  |   | 342,826                                                     |   |         | 13,677  |   |   | 830,109 |   |
| Costs and Expenses:                                                                                                                                         |           |           |    |                  |   |                                                        |   |         |    |   |   |   |   |
|     Cost of restaurant sales:                                                                                                           |           |           |    |                  |   |                                                        |   |         |    |   |   |   |   |
|         Cost of food and beverage                                                                                   |           |           | 141,243 |                  |   | 101,360                                                     |   |         | 4,955   |   |   | 247,558 |   |
|         Payroll and benefits                                                                                        |           |           | 177,019 |                  |   | 124,379                                                     |   |         | (7,769  | ) |   | 293,629 |   |
|         Restaurant operating costs                                                                                  |           |           | 94,317  |                  |   | 66,463                                                      |   |         | 14,245  |   |   | 175,025 |   |
|             Cost of restaurant sales, exclusive of                                              |           |           | 412,579 |                  |   | 292,202                                                     |   |         | 11,431  |   |   | 716,212 |   |
|                     depreciation and amortization shown |           |           |    |                  |   |                                                        |   |         |    |   |   |   |   |
|                     separately below                    |           |           |    |                  |   |                                                        |   |         |    |   |   |   |   |
|                                                                                                                                                        |           |           |    |                  |   |                                                        |   |         |    |   |   |   |   |
|     Advertising and marketing expenses                                                                                                  |           |           | — |                  |   | 34,523                                                      |   |         | 132     |   |   | 34,655 |   |
|     General and administrative expenses                                                                                                 |           |           | 5,953   |                  |   | 34,281                                                      |   |         | (760    | ) |   | 39,474 |   |
|     Depreciation and amortization of property and equipment                                                                             |           |           | 23,490  |                  |   | 18,109                                                      |   |         | 494     |   |   | 42,093 |   |
|     Impairment, disposal and restructuring charges, net                                                                                 |           |           | 10,084  |                  |   | 4,914                                                       |   |         | — |   |   | 14,998 |   |
|     Pre-opening costs                                                                                                                   |           |           | — |                  |   | 7                                                           |   |         | — |   |   | 7 |   |
|                                                                                                                                                        |           |           | 452,106 |                  |   | 384,036                                                     |   |         | 11,297  |   |   | 847,439 |   |
| Income (Loss) from Operations                                                                                                                          |           |           | 21,500  |                  |   | (41,210                                                     | )      |         | 2,380   |   |   | (17,330 | ) |
| Other  Expense (Income):                                                                                                                               |           |           |    |                  |   |                                                        |   |         |    |   |   |   |   |
|     Interest expense, net                                                                                                               |           |           | 13,513  |                  |   | (1,701                                                      | )      |         | — |   |   | 11,812 |   |
|     Other, net                                                                                                                          |           |           | 49,582  |                  |   | (49,590                                                     | )      |         | — |   |   | (8 | ) |
|                                                                                                                                                        |           |           | 63,095  |                  |   | (51,291                                                     | )      |         | — |   |   | 11,804 |   |
| (Loss) Earnings from Continuing Operations Before                                                                                                           |           |           |    |                  |   |                                                        |   |         |    |   |   |   |   |
|     Income Taxes                                                                                                                        |           |           | (41,595 | )                     |   | 10,081                                                      |   |         | 2,380   |   |   | (29,134 | ) |
| Income Tax Expense (Benefit)                                                                                                                                |           |           | (1,802  | )                     |   | (47                                                         | )      |         | — |   |   | (1,849 | ) |
|                                                                                                                                                        |           |           |    |                  |   |                                                        |   |         |    |   |   |   |   |
| (Loss) Earnings from Continuing Operations                                                                                                                  |           |           | (39,793 | )                     |   | 10,128                                                      |   |         | 2,380   |   |   | (27,285 | ) |
| (Loss) Earnings from Discontinued Operations, net                                                                                                           |           |           | (4,073  | )                     |   | (3,557                                                      | )      |         | — |   |   | (7,630 | ) |
| Net (Loss) Earnings                                                                                                                                         |           | $              | (43,866 | )                     | $      | 6,571                                                       |   | $            | 2,380   |   | $ | (34,915 | ) |
|                                                                                                                                                        |           |           |    |                  |   |                                                        |   |         |    |   |   |   |   |

----

|                                                                                                                                                                                                                                                                                 |   | Parent Company |    |   | Subsidiary Guarantors |    | Minor Subsidiaries and Consolidating Adjustments |   |    | Consolidated |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-----------------------|---------|--------------------------------------------------|--------|---------|--------------|--------|
|                                                                                                                                                                                                                                                                                 |   |           |    |   |                  |    |                                             |   |    |         |   |   |   |
| Revenues:                                                                                                                                                                                                                                                                            |   |           |    |   |                  |    |                                             |   |    |         |   |   |   |
|                                                                                                                                                                                                                                                                                 |   |           |    |   |                  |    |                                             |   |    |         |   |   |   |
|     Restaurant sales                                                                                                                                                                                                                                             |   | $              | 493,362 |   | $                     | 352,514 |                                             | $      | 19,466  |         | $      | 865,342 |   |
|     Commissary sales                                                                                                                                                                                                                                             |   |           | — |   |                  | 50,854  |                                             |   | (50,854 | )            |   | — |   |
|     Franchise and other revenue                                                                                                                                                                                                                                  |   |           | 982     |   |                  | 167     |                                             |   | (218    | )            |   | 931 |   |
|                                                                                                                                                                                                                                                                                 |   |           | 494,344 |   |                  | 403,535 |                                             |   | (31,606 | )            |   | 866,273 |   |
| Costs and Expenses:                                                                                                                                                                                                                                                                  |   |           |    |   |                  |    |                                             |   |    |         |   |   |   |
|     Cost of restaurant sales:                                                                                                                                                                                                                                    |   |           |    |   |                  |    |                                             |   |    |         |   |   |   |
|         Cost of food and beverage                                                                                                                                                                                                            |   |           | 143,030 |   |                  | 103,193 |                                             |   | 5,984   |         |   | 252,207 |   |
|         Payroll and benefits                                                                                                                                                                                                                 |   |           | 183,158 |   |                  | 128,473 |                                             |   | (6,213  | )            |   | 305,418 |   |
|         Restaurant operating costs                                                                                                                                                                                                           |   |           | 89,954  |   |                  | 66,117  |                                             |   | 15,859  |         |   | 171,930 |   |
|             Cost of restaurant sales, exclusive of depreciation and                   amortization shown separately below |   |           | 416,142 |   |                  | 297,783 |                                             |   | 15,630  |         |   | 729,555 |   |
|                                                                                                                                                                                                                                                                                 |   |           |    |   |                  |    |                                             |   |    |         |   |   |   |
|     Cost of commissary sales                                                                                                                                                                                                                                     |   |           | — |   |                  | 49,795  |                                             |   | (49,795 | )            |   | — |   |
|     Advertising and marketing expenses                                                                                                                                                                                                                           |   |           | — |   |                  | 31,979  |                                             |   | 255     |         |   | 32,234 |   |
|     General and administrative expenses                                                                                                                                                                                                                          |   |           | 5,254   |   |                  | 34,455  |                                             |   | (1,366  | )            |   | 38,343 |   |
|     Depreciation and amortization of property and equipment                                                                                                                                                                                                      |   |           | 26,664  |   |                  | 19,051  |                                             |   | 745     |         |   | 46,460 |   |
|     Impairment, disposal and restructuring charges, net                                                                                                                                                                                                          |   |           | 3,504   |   |                  | 4,553   |                                             |   | 380     |         |   | 8,437 |   |
|     Pre-opening costs                                                                                                                                                                                                                                            |   |           | 1       |   |                  | 596     |                                             |   | — |         |   | 597 |   |
|                                                                                                                                                                                                                                                                                 |   |           | 451,565 |   |                  | 438,212 |                                             |   | (34,151 | )            |   | 855,626 |   |
| Income (Loss) from Operations                                                                                                                                                                                                                                                   |   |           | 42,779  |   |                  | (34,677 | )                                                |   | 2,545   |         |   | 10,647 |   |
| Other  Expense (Income):                                                                                                                                                                                                                                                        |   |           |    |   |                  |    |                                             |   |    |         |   |   |   |
|     Interest expense, net                                                                                                                                                                                                                                        |   |           | 12,882  |   |                  | (1,631  | )                                                |   | 377     |         |   | 11,628 |   |
|     Other, net                                                                                                                                                                                                                                                   |   |           | (68     | )      |                  | — |                                             |   | — |         |   | (68 | ) |
|                                                                                                                                                                                                                                                                                 |   |           | 12,814  |   |                  | (1,631  | )                                                |   | 377     |         |   | 11,560 |   |
| (Loss) Earnings from Continuing Operations Before                                                                                                                                                                                                                                    |   |           |    |   |                  |    |                                             |   |    |         |   |   |   |
|     Income Taxes                                                                                                                                                                                                                                                 |   |           | 29,965  |   |                  | (33,046 | )                                                |   | 2,168   |         |   | (913 | ) |
| Income Tax Expense (Benefit)                                                                                                                                                                                                                                                         |   |           | 2,197   |   |                  | 57      |                                             |   | — |         |   | 2,254 |   |
|                                                                                                                                                                                                                                                                                 |   |           |    |   |                  |    |                                             |   |    |         |   |   |   |
| (Loss) Earnings from Continuing Operations                                                                                                                                                                                                                                           |   |           | 27,768  |   |                  | (33,103 | )                                                |   | 2,168   |         |   | (3,167 | ) |
| (Loss) Earnings from Discontinued Operations, net                                                                                                                                                                                                                                    |   |           | (244    | )      |                  | (3,914  | )                                                |   | — |         |   | (4,158 | ) |
| Net Earnings (Loss)                                                                                                                                                                                                                                                             |   | $              | 27,524  |   | $                     | (37,017 | )                                                | $      | 2,168   |         | $      | (7,325 | ) |

----

|                                                                                                                                                                                                                                                                                 |           | Parent Company |    | Subsidiary Guarantors |   | Minor Subsidiaries and Consolidating Adjustments |   | Consolidated |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|----------------|---------|-----------------------|--------|--------------------------------------------------|--------|--------------|---------|
|                                                                                                                                                                                                                                                                                 | (in thousands) |
| Revenues:                                                                                                                                                                                                                                                                            |           |           |    |                  |   |                                             |   |         |    |   |   |   |   |
|                                                                                                                                                                                                                                                                                 |           |           |    |                  |   |                                             |   |         |    |   |   |   |   |
|     Restaurant sales                                                                                                                                                                                                                                             |           | $              | 515,083 |                  | $      | 374,312                                          |   | $            | 24,493  |   | $ | 913,888 |   |
|     Commissary sales                                                                                                                                                                                                                                             |           |           | — |                  |   | 85,234                                           |   |         | (85,234 | ) |   | — |   |
|     Franchise and other revenue                                                                                                                                                                                                                                  |           |           | 996     |                  |   | 157                                              |   |         | (310    | ) |   | 843 |   |
|                                                                                                                                                                                                                                                                                 |           |           | 516,079 |                  |   | 459,703                                          |   |         | (61,051 | ) |   | 914,731 |   |
| Costs and Expenses:                                                                                                                                                                                                                                                                  |           |           |    |                  |   |                                             |   |         |    |   |   |   |   |
|     Cost of restaurant sales:                                                                                                                                                                                                                                    |           |           |    |                  |   |                                             |   |         |    |   |   |   |   |
|         Cost of food and beverage                                                                                                                                                                                                            |           |           | 151,080 |                  |   | 110,989                                          |   |         | 8,801   |   |   | 270,870 |   |
|         Payroll and benefits                                                                                                                                                                                                                 |           |           | 189,079 |                  |   | 135,815                                          |   |         | (5,642  | ) |   | 319,252 |   |
|         Restaurant operating costs                                                                                                                                                                                                           |           |           | 96,025  |                  |   | 70,336                                           |   |         | 18,017  |   |   | 184,378 |   |
|             Cost of restaurant sales, exclusive of depreciation and                   amortization shown separately below |           |           | 436,184 |                  |   | 317,140                                          |   |         | 21,176  |   |   | 774,500 |   |
|                                                                                                                                                                                                                                                                                 |           |           |    |                  |   |                                             |   |         |    |   |   |   |   |
|     Cost of commissary sales                                                                                                                                                                                                                                     |           |           | — |                  |   | 85,047                                           |   |         | (85,047 | ) |   | — |   |
|     Advertising and marketing expenses                                                                                                                                                                                                                           |           |           | — |                  |   | 33,385                                           |   |         | 368     |   |   | 33,753 |   |
|     General and administrative expenses                                                                                                                                                                                                                          |           |           | 6,554   |                  |   | 38,902                                           |   |         | (1,164  | ) |   | 44,292 |   |
|     Depreciation and amortization of property and equipment                                                                                                                                                                                                      |           |           | 28,809  |                  |   | 19,820                                           |   |         | 914     |   |   | 49,543 |   |
|     Impairment, disposal and restructuring charges, net                                                                                                                                                                                                          |           |           | 3,772   |                  |   | 6,619                                            |   |         | 2,385   |   |   | 12,776 |   |
|     Goodwill impairment                                                                                                                                                                                                                                          |           |           | — |                  |   | 93,656                                           |   |         | — |   |   | 93,656 |   |
|     Pre-opening costs                                                                                                                                                                                                                                            |           |           | 2,181   |                  |   | 1,474                                            |   |         | — |   |   | 3,655 |   |
|                                                                                                                                                                                                                                                                                 |           |           | 477,500 |                  |   | 596,043                                          |   |         | (61,368 | ) |   | 1,012,175 |   |
| Income (Loss) from Operations                                                                                                                                                                                                                                                   |           |           | 38,579  |                  |   | (136,340                                         | )      |         | 317     |   |   | (97,444 | ) |
| Other  Expense (Income):                                                                                                                                                                                                                                                        |           |           |    |                  |   |                                             |   |         |    |   |   |   |   |
|     Interest expense, net                                                                                                                                                                                                                                        |           |           | 18,258  |                  |   | (3,965                                           | )      |         | 673     |   |   | 14,966 |   |
|     Other, net                                                                                                                                                                                                                                                   |           |           | 10      |                  |   | —                                          |   |         | — |   |   | 10 |   |
|                                                                                                                                                                                                                                                                                 |           |           | 18,268  |                  |   | (3,965                                           | )      |         | 673     |   |   | 14,976 |   |
| (Loss) Earnings from Continuing Operations Before                                                                                                                                                                                                                                    |           |           |    |                  |   |                                             |   |         |    |   |   |   |   |
|      Income Taxes                                                                                                                                                                                                                                           |           |           | 20,311  |                  |   | (132,375                                         | )      |         | (356    | ) |   | (112,420 | ) |
| Income Tax Expense (Benefit)                                                                                                                                                                                                                                                         |           |           | 15,464  |                  |   | (349                                             | )      |         | — |   |   | 15,115 |   |
|                                                                                                                                                                                                                                                                                 |           |           |    |                  |   |                                             |   |         |    |   |   |   |   |
| (Loss) Earnings from Continuing Operations                                                                                                                                                                                                                                           |           |           | 4,847   |                  |   | (132,026                                         | )      |         | (356    | ) |   | (127,535 | ) |
| (Loss) Earnings from Discontinued Operations, net                                                                                                                                                                                                                                    |           |           | (945    | )                     |   | (4,017                                           | )      |         | — |   |   | (4,962 | ) |
| Net Earnings (Loss)                                                                                                                                                                                                                                                             |           | $              | 3,902   |                  | $      | (136,043                                         | )      | $            | (356    | ) | $ | (132,497 | ) |

----

|                                                                                                      |   | Parent Company |   |   | Subsidiary Guarantors |   |   | Minor Subsidiaries and Consolidating Adjustments |   |   | Consolidated |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-----------------------|--------|--------|--------------------------------------------------|--------|--------|--------------|--------|
|                                                                                                      |   | (in thousands) |   |
| Cash Flows from Operating Activities:                                                                     |   |           |   |   |                  |   |   |                                             |   |   |         |   |
| Net earnings (loss)                                                                                  | $      | (43,869        | )      | $      | 6,573                 |   | $      | 2,381                                            |   | $      | (34,915      | )      |
| Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:      |   |           |   |   |                  |   |   |                                             |   |   |         |   |
|     Depreciation and amortization of property and equipment                           |   | 23,667         |   |   | 18,334                |   |   | 494                                              |   |   | 42,495       |   |
|     Amortization of debt issuance costs, net                                          |   | 728            |   |   | —               |   |   | —                                          |   |   | 728          |   |
|     Deferred income taxes and other income tax related items                          |   | 2,484          |   |   | —               |   |   | —                                          |   |   | 2,484        |   |
|     Share-based compensation                                                          |   | 3,584          |   |   | —               |   |   | —                                          |   |   | 3,584        |   |
|     Loss on early extinguishment of debt                                              |   | 198            |   |   | —               |   |   | —                                          |   |   | 198          |   |
|     Amortization of deferred gain on sale-leasebacks                                  |   | (1,056         | )      |   | —               |   |   | —                                          |   |   | (1,056       | )      |
|     Loss on the sale of assets                                                        |   | 114            |   |   | 68                    |   |   | —                                          |   |   | 182          |   |
|     Non-cash impairment, disposal and restructuring charges, net                      |   | 13,264         |   |   | 7,283                 |   |   | —                                          |   |   | 20,547       |   |
|     Changes in assets and liabilities:                                                |   |           |   |   |                  |   |   |                                             |   |   |         |   |
|          Trade accounts and other receivables                |   | 1,970          |   |   | 649                   |   |   | 8                                                |   |   | 2,627        |   |
|          Inventories                                         |   | 524            |   |   | 794                   |   |   | —                                          |   |   | 1,318        |   |
|          Other current assets                                |   | 217            |   |   | (15                   | )      |   | 10                                               |   |   | 212          |   |
|          Trade accounts payable                              |   | 3,018          |   |   | 92                    |   |   | —                                          |   |   | 3,110        |   |
|          Deferred revenue                                    |   | —        |   |   | (385                  | )      |   | —                                          |   |   | (385         | )      |
|         Accrued payroll, accrued expenses, and federal, state,    |   |           |   |   |                  |   |   |                                             |   |   |         |   |
|                and local taxes |   | (3,129         | )      |   | 1,162                 |   |   | (11                                              | )      |   | (1,978       | )      |
|          Other long-term assets and liabilities              |   | (5,211         | )      |   | 799                   |   |   | 976                                              |   |   | (3,436       | )      |
| Net cash provided by (used in) operating activities                                                       |   | (3,497         | )      |   | 35,354                |   |   | 3,858                                            |   |   | 35,715       |   |
| Cash Flows from Investing Activities:                                                                     |   |           |   |   |                  |   |   |                                             |   |   |         |   |
| Additions to property and equipment                                                                       |   | (9,395         | )      |   | (5,975                | )      |   | (75                                              | )      |   | (15,445      | )      |
| Proceeds from the sale of assets                                                                          |   | 7              |   |   | 1,130                 |   |   | —                                          |   |   | 1,137        |   |
| Other, net                                                                                                |   | (13            | )      |   | —               |   |   | —                                          |   |   | (13          | )      |
| Net cash (used in) provided by investing activities                                                       |   | (9,401         | )      |   | (4,845                | )      |   | (75                                              | )      |   | (14,321      | )      |
| Cash Flows from Financing Activities:                                                                     |   |           |   |   |                  |   |   |                                             |   |   |         |   |
| Payments on long-term debt and capitalized lease obligations                                              |   | (2,352         | )      |   | —               |   |   | —                                          |   |   | (2,352       | )      |
| Repurchase of senior notes                                                                                |   | (9,993         | )      |   | —               |   |   | —                                          |   |   | (9,993       | )      |
| Dividends paid                                                                                            |   | (3             | )      |   | —               |   |   | —                                          |   |   | (3           | )      |
| Proceeds from the exercise of stock options and issuances under                                           |   |           |   |   |                  |   |   |                                             |   |   |         |   |
|        stock purchase plan                                             |   | 745            |   |   | —               |   |   | —                                          |   |   | 745          |   |
| Excess tax benefit from share-based payments                                                              |   | 11             |   |   | —               |   |   | —                                          |   |   | 11           |   |
| Shares tendered and retired for minimum tax withholding                                                   |   | (307           | )      |   | —               |   |   | —                                          |   |   | (307         | )      |
| Debt issuance costs                                                                                       |   | (1,682         | )      |   | —               |   |   | —                                          |   |   | (1,682       | )      |
| Net cash used in financing activities                                                                     |   | (13,581        | )      |   | —               |   |   | —                                          |   |   | (13,581      | )      |
| (Decrease) increase in cash and cash equivalents                                                          |   | (26,479        | )      |   | 30,509                |   |   | 3,783                                            |   |   | 7,813        |   |
| Cash and cash equivalents at beginning of the year                                                        |   | 2,127          |   |   | 19,753                |   |   | —                                          |   |   | 21,880       |   |
| Cash and cash equivalents at end of the year                                                              | $      | (24,352        | )      | $      | 50,262                |   | $      | 3,783                                            |   | $      | 29,693       |   |

----

|                                                                                                         |   | Parent Company |   |   | Subsidiary Guarantors |   |   | Minor Subsidiaries and Consolidating Adjustments |   |   | Consolidated |   |
|--------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-----------------------|--------|--------|--------------------------------------------------|--------|--------|--------------|--------|
|                                                                                                         |   | (in thousands) |   |
| Cash Flows from Operating Activities:                                                                        |   |           |   |   |                  |   |   |                                             |   |   |         |   |
| Net earnings (loss)                                                                                     | $      | 27,524         |   | $      | (37,015               | )      | $      | 2,166                                            |   | $      |  (7,325 | )      |
| Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:         |   |           |   |   |                  |   |   |                                             |   |   |         |   |
|     Depreciation and amortization of property and equipment                              |   | 27,030         |   |   | 19,508                |   |   | 745                                              |   |   | 47,283       |   |
|     Amortization of debt issuance costs and swap termination                             |   | 282            |   |   | —               |   |   | —                                          |   |   | 282          |   |
|          payments, net                                          |   |           |   |   |                  |   |   |                                             |   |   |         |   |
|     Deferred income taxes and other income tax related items                             |   | (638           | )      |   | —               |   |   | —                                          |   |   | (638         | )      |
|     Share-based compensation                                                             |   | 4,489          |   |   | —               |   |   | —                                          |   |   | 4,489        |   |
|     Amortization of deferred gain on sale-leasebacks                                     |   | (1,056         | )      |   | —               |   |   | —                                          |   |   | (1,056       | )      |
|     Loss on the sale of assets                                                           |   | 83             |   |   | 46                    |   |   | —                                          |   |   | 129          |   |
|     Non-cash impairment, disposal and restructuring charges,                             |   | 3,506          |   |   | 7,469                 |   |   | —                                          |   |   | 10,975       |   |
|      Net                                                                            |   |           |   |   |                  |   |   |                                             |   |   |         |   |
| Noncontrolling interests                                                                                     |   | —        |   |   | —               |   |   | (83                                              | )      |   | (83          | )      |
|     Changes in assets and liabilities:                                                   |   |           |   |   |                  |   |   |                                             |   |   |         |   |
|          Trade accounts and other receivables                   |   | 3,464          |   |   | (1,314                | )      |   | 11                                               |   |   | 2,161        |   |
|          Inventories                                            |   | (127           | )      |   | 6,897                 |   |   | 66                                               |   |   | 6,836        |   |
|          Other current assets                                   |   | 11             |   |   | 2,501                 |   |   | 32                                               |   |   | 2,544        |   |
|          Trade accounts payable                                 |   | (3,069         | )      |   | (3,217                | )      |   | (5,079                                           | )      |   | (11,365      | )      |
|          Deferred revenue                                       |   | —        |   |   | (93                   | )      |   | (51                                              | )      |   | (144         | )      |
|          Accrued payroll, accrued expenses, and federal, state, |   | (2,655         | )      |   | (3,690                | )      |   | (78                                              | )      |   | (6,423       | )      |
|               and local taxes          |   |           |   |   |                  |   |   |                                             |   |   |         |   |
|          Other long-term assets and liabilities                 |   | 5,846          |   |   | 575                   |   |   | (5,694                                           | )      |   | 727          |   |
| Net cash provided by (used in) operating activities                                                          |   | 64,690         |   |   | (8,333                | )      |   | (7,965                                           | )      |   | 48,392       |   |
| Cash Flows from Investing Activities:                                                                        |   |           |   |   |                  |   |   |                                             |   |   |         |   |
| Additions to property and equipment                                                                          |   | (10,181        | )      |   | (6,714                | )      |   | 2,231                                            |   |   | (14,664      | )      |
| Proceeds from the sale of assets                                                                             |   | 68             |   |   | 7,903                 |   |   | —                                          |   |   | 7,971        |   |
| Other, net                                                                                                   |   | (28,692        | )      |   | 29,536                |   |   | (799                                             | )      |   | 45           |   |
| Net cash (used in) provided by investing activities                                                          |   | (38,805        | )      |   | 30,725                |   |   | 1,432                                            |   |   | (6,648       | )      |
| Cash Flows from Financing Activities:                                                                        |   |           |   |   |                  |   |   |                                             |   |   |         |   |
| Payments on long-term debt and capitalized lease obligations                                                 |   | (30,452        | )      |   | —               |   |   | —                                          |   |   | (30,452      | )      |
| Payments to noncontrolling interests                                                                         |   | (300           | )      |   | —               |   |   | —                                          |   |   | (300         | )      |
| Proceeds from the exercise of stock options and issuances                                                    |   | 799            |   |   | —               |   |   | —                                          |   |   | 799          |   |
|     under stock purchase plan                                                            |   |           |   |   |                  |   |   |                                             |   |   |         |   |
| Proceeds from swap cancellation                                                                              |   | 3,510          |   |   | —               |   |   | —                                          |   |   | 3,510        |   |
| Shares tendered and retired for minimum tax withholding                                                      |   | (220           | )      |   | —               |   |   | —                                          |   |   | (220         | )      |
| Debt issuance costs                                                                                          |   | (19            | )      |   | —               |   |   | —                                          |   |   | (19          | )      |
| Net cash used in financing activities                                                                        |   | (26,682        | )      |   | —               |   |   | —                                          |   |   | (26,682      | )      |
| (Decrease) increase in cash and cash equivalents                                                             |   | (797           | )      |   | 22,392                |   |   | (6,533                                           | )      |   | 15,062       |   |
| Cash and cash equivalents at beginning of the year                                                           |   | 2,924          |   |   | (2,639                | )      |   | 6,533                                            |   |   | 6,818        |   |
| Cash and cash equivalents at end of the year                                                                 | $      | 2,127          |   | $      | 19,753                |   | $      | —                                          |   | $      | 21,880       |   |

----

|                                                                                                         |   |           |   |   |       |   |   | Minor Subsidiaries |   |   |           |   |
|--------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|------------|--------|--------|--------------------|--------|--------|----------------|--------|
|                                                                                                         |   | Parent         |   |   | Subdisiary |   |   | And Consolidating  |   |   |           |   |
|                                                                                                         |   | Company        |   |   | Guarantors |   |   | Adjustments        |   |   | Consolidated   |   |
|                                                                                                         |   | (in thousands) |   |
|                                                                                                         |   |           |   |   |       |   |   |               |   |   |           |   |
| Cash Flows from Operating Activities:                                                                        |   |           |   |   |       |   |   |               |   |   |           |   |
| Net earnings (loss)                                                                                     | $      | 3,904          |   | $      | (136,044   | )      | $      | (357               | )      | $      |  (132,497 | )      |
| Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:    |   |           |   |   |       |   |   |               |   |   |           |   |
|     Depreciation and amortization of property and equipment                              |   | 29,322         |   |   | 20,540     |   |   | 914                |   |   | 50,776         |   |
|     Amortization of debt issuance costs and swap termination                             |   | 1,326          |   |   | —    |   |   | —            |   |   | 1,326          |   |
|          payments, net                                          |   |           |   |   |       |   |   |               |   |   |           |   |
|     Deferred income taxes and other income tax related items                             |   | 22,666         |   |   | —    |   |   | —            |   |   | 22,666         |   |
|     Share-based compensation                                                             |   | 5,917          |   |   | —    |   |   | —            |   |   | 5,917          |   |
|     Amortization of deferred gain on sale-leasebacks                                     |   | (1,056         | )      |   | —    |   |   | —            |   |   | (1,056         | )      |
|     Loss on the sale of assets                                                           |   | 59             |   |   | —    |   |   | —            |   |   | 59             |   |
|     Goodwill impairment                                                                  |   | —        |   |   | 93,656     |   |   | —            |   |   | 93,656         |   |
|     Non-cash impairment, disposal and restructuring charges,                             |   | 46             |   |   | 14,208     |   |   | 2,634              |   |   | 16,888         |   |
|          Net                                                    |   |           |   |   |       |   |   |               |   |   |           |   |
|     Changes in assets and liabilities:                                                   |   |           |   |   |       |   |   |               |   |   |           |   |
|          Trade accounts and other receivables                   |   | (3,217         | )      |   | 1,260      |   |   | (83                | )      |   | (2,040         | )      |
|          Inventories                                            |   | (430           | )      |   | (4,967     | )      |   | (9                 | )      |   | (5,406         | )      |
|          Other current assets                                   |   | (2             | )      |   | (3,386     | )      |   | 10                 |   |   | (3,378         | )      |
|          Trade accounts payable                                 |   | (1,777         | )      |   | 707        |   |   | 6,728              |   |   | 5,658          |   |
|          Deferred revenue                                       |   | —        |   |   | 420        |   |   | (116               | )      |   | 304            |   |
|          Accrued payroll, accrued expenses, and federal, state, |   | 4,075          |   |   | 119        |   |   | 180                |   |   | 4,374          |   |
|               and local taxes          |   |           |   |   |       |   |   |               |   |   |           |   |
|          Other long-term assets and liabilities                 |   | (3,439         | )      |   | (1,035     | )      |   | 1,563              |   |   | (2,911         | )      |
| Net cash provided by (used in) operating activities                                                          |   | 57,394         |   |   | (14,522    | )      |   | 11,464             |   |   | 54,336         |   |
| Cash Flows from Investing Activities:                                                                        |   |           |   |   |       |   |   |               |   |   |           |   |
| Additions to property and equipment                                                                          |   | (20,582        | )      |   | (28,851    | )      |   | 2,033              |   |   | (47,400        | )      |
| Proceeds from the sale of assets                                                                             |   | 2,405          |   |   | —    |   |   | 1,779              |   |   | 4,184          |   |
| Other, net                                                                                                   |   | (26,735        | )      |   | 34,465     |   |   | (7,627             | )      |   | 103            |   |
| Net cash (used in) provided by investing activities                                                          |   | (44,912        | )      |   | 5,614      |   |   | (3,815             | )      |   | (43,113        | )      |
| Cash Flows from Financing Activities:                                                                        |   |           |   |   |       |   |   |               |   |   |           |   |
| Proceeds from long-term debt                                                                                 |   | 23,812         |   |   | —    |   |   | —            |   |   | 23,812         |   |
| Payments on long-term debt and capitalized lease obligations                                                 |   | (8,360         | )      |   | —    |   |   | (1,149             | )      |   | (9,509         | )      |
| Dividends Paid                                                                                               |   | (3,864         | )      |   | —    |   |   | —            |   |   | (3,864         | )      |
| Shares repurchased                                                                                           |   | (24,775        | )      |   | —    |   |   | —            |   |   | (24,775        | )      |
| Proceeds from the exercise of stock options and issuances                                                    |   | 1,109          |   |   | —    |   |   | —            |   |   | 1,109          |   |
|     under stock purchase plan                                                            |   |           |   |   |       |   |   |               |   |   |           |   |
| Excess tax benefit derived from share-based payments                                                         |   | 177            |   |   | —    |   |   | —            |   |   | 177            |   |
| Shares tendered and retired for minimum tax withholding                                                      |   | (583           | )      |   | —    |   |   | —            |   |   | (583           | )      |
| Debt issuance costs                                                                                          |   | (891           | )      |   | —    |   |   | —            |   |   | (891           | )      |
| Other financing activities                                                                                   |   | 137            |   |   | —    |   |   | —            |   |   | 137            |   |
| Net cash used in financing activities                                                                        |   | (13,238        | )      |   | —    |   |   | (1,149             | )      |   | (14,387        | )      |
| (Decrease) increase in cash and cash equivalents                                                             |   | (756           | )      |   | (8,908     | )      |   | 6,500              |   |   | (3,164         | )      |
| Cash and cash equivalents at beginning of the year                                                           |   | 3,680          |   |   | 6,269      |   |   | 33                 |   |   | 9,982          |   |
| Cash and cash equivalents at end of the year                                                                 | $      | 2,924          |   | $      | (2,639     | )      | $      | 6,533              |   | $      |  6,818    |   |

----

| Description                                 |   | Balance at Beginning of Period |   |   | Additions Charges to Costs and Expenses |   |   | Charged to Other Accounts |   |   | Deductions |   |   | Balance at End of Period |
|---------------------------------------------|--------|--------------------------------|--------|--------|-----------------------------------------|--------|--------|---------------------------|--------|--------|------------|--------|--------|--------------------------|
| Valuation allowance for deferred tax assets |   |                           |   |   |                                    |   |   |                      |   |   |       |   |   |                     |
| Year ended December 26, 2010                | $      | 72,263                         |   | $      | 18,624                                  |   | $      | —                   |   | $      | —    |   | $      | 90,887                   |
| Year ended December 27, 2009           | $      | 65,791                         |   | $      | 8,298                                   |   | $      | —                   |   | $      | 1,826      |   | $      | 72,263                   |
| Year ended December 28, 2008           | $      | 4,772                          |   | $      | 61,621                                  |   | $      | —                   |   | $      | 602        |   | $      | 65,791                   |
|                                        |   |                           |   |   |                                    |   |   |                      |   |   |       |   |   |                     |

Item 9.               Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure

Item 9A.                      
Controls and Procedures

|   | (i) | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

Report of Independent Registered Public Accounting Firm

----

Item 9B.               
Other Information

PART III

Item 10.               Directors, Executive Officers and Corporate Governance

Item 11.               Executive Compensation.

Item 12.               Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters

Item 13.               Certain Relationships and Related Transactions, and Director Independence.

Item 14.               Principal Accountant Fees and Services.

----

PART IV

Item 15.               Exhibits and Financial Statement Schedules

| (a) | 1. Financial Statements: See Item 8 |
|-----|-------------------------------------|

|   | 2. | Financial Statement Schedules: See Item 8 |
|--------|----|-------------------------------------------|

|   | 3. | Management Contracts and Compensatory Plans and Arrangements: See Item 8 |
|--------|----|--------------------------------------------------------------------------|

|   | 4. | Exhibits: |
|--------|----|-----------|

| ExhibitNumber |    |  Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1           |         | Asset Purchase Agreement by and among O’Charley’s Inc., 99 Boston, Inc., 99 Boston of Vermont, Inc., Doe Family II LLC, and each of William A. Doe, III, Dana G. Doe and Charles F. Doe, Jr. (Pursuant to Item 601 (b)(2) of Regulation S-K, the schedules and exhibits to this agreement are omitted, but will be provided supplementally to the Commission upon request.) (incorporated herein by reference to Exhibit 2.1 of the Company’s Current Report on Form 8-K filed with the Commission on November 1, 2002) (File No. 0-18629)                                                              |
| 2.2           |         | Merger Agreement by and among O’Charley’s Inc., Volunteer Acquisition Corporation, 99 West, Inc., and each of William A. Doe, III, Dana G. Doe and Charles F. Doe, Jr. (Pursuant to Item 601(b)(2) of Regulation S-K, the schedules and exhibits to this agreement are omitted, but will be provided supplementally to the Commission upon request.) (incorporated herein by reference to Exhibit 2.2 of the Company’s Current Report on Form 8-K filed with the Commission on November 1, 2002) (File No. 0-18629)                                                                                     |
| 3.1           |         | Restated Charter of O’Charley’s Inc. (restated electronically for Commission filing purposes only) (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed with the Commission on May 13, 2009) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                  |
| 3.2           |         | Amended and Restated Bylaws of O’Charley’s Inc. (incorporated by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K filed with the Commission on May 13, 2009) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.1           |         | Form of Certificate for the Common Stock (incorporated by reference to Exhibit 4.1 of the Company’s Registration Statement on Form S-1, Registration No. 33-35170)                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.2           |         | Indenture, dated as of November 4, 2003, by and among O’Charley’s Inc., various direct and indirect subsidiaries of O’Charley’s Inc. and The Bank of New York (including Form of 144A Global Note and Form of Regulation S Temporary Global Note). (incorporated by reference to Exhibit 10.3 of the Company’s Quarterly Report on Form 10-Q for the quarter ended October 5, 2003) (File No. 0-18629)                                                                                                                                                                                      |
| 10.1          |         | CHUX Ownership Plan (incorporated by reference to Appendix B to the Company’s Definitive Proxy Statement for the 2009 Annual Meeting of Shareholders filed with the Commission on April 8, 2009) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.2          |         | Amendment to CHUX Ownership Plan (incorporated by reference to Exhibit 10.2 of the Company’s Annual Report on Form 10-K for the year ended December 27, 2009) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.3*         |         | O’Charley’s 2000 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended July 9, 2000) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.4*         |         | O’Charley’s Inc. Executive Incentive Plan (incorporated by reference to Exhibit A to the Company’s Definitive Proxy Statement for the 2007 Annual Meeting of Shareholders filed with the Commission on April 19, 2007) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                               |
| 10.5*         |         | O’Charley’s Inc. 2008 Equity and Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the Commission on May 28, 2008) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.6          |         | Master Lease, dated December 4, 2001, by and between Double 9 Property I LLC and Doe Family II LLC (incorporated by reference to Exhibit 10.33 of the Company’s Annual Report on Form 10-K for the year ended December 29, 2002) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                 |
| 10.7          |         | Assignment and Assumption of Lease and Acknowledgement of Master Lease Assignment and Subordination, Nondisturbance and Attornment Agreement, dated January 27, 2003, by and among Doe Family II LLC, 99 West, Inc., Double 9 Property I LLC, 99 Remainder I LLC and GE Capital Franchise Finance Corporation (incorporated by reference to Exhibit 10.34 of the Company’s Annual Report on Form 10-K for the year ended December 29, 2002) (File No. 0-18629)                                                                                                                                                      |
| 10.8          |         | Master Lease, dated December 4, 2001, by and between Double 9 Property II LLC and Doe Family II LLC (incorporated by reference to Exhibit 10.35 of the Company’s Annual Report on Form 10-K for the year ended December 29, 2002) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                |
| 10.9          |         | First Amendment to Master Lease, dated February 1, 2002, by and between Double 9 Property II LLC and Doe Family II LLC (incorporated by reference to Exhibit 10.36 of the Company’s Annual Report on Form 10-K for the year ended December 29, 2002) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                             |
| 10.10         |         | Assignment and Assumption of Lease and Acknowledgement of Master Lease Assignment and Subordination, Nondisturbance and Attornment Agreement, dated January 27, 2003, by and among Doe Family II LLC, 99 West, Inc., Double 9 Property II LLC, 99 Remainder II LLC and GE Capital Franchise Finance Corporation (incorporated by reference to Exhibit 10.37 of the Company’s Annual Report on Form 10-K for the year ended December 29, 2002) (File No. 0-18629)                                                                                                                                                    |
| 10.11         |         | Master Lease, dated December 4, 2001, by and between Double 9 Property III LLC and Doe Family II LLC (incorporated by reference to Exhibit 10.38 of the Company’s Annual Report on Form 10-K for the year ended December 29, 2002) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                               |
| 10.12         |         | Assignment and Assumption of Lease and Acknowledgement of Master Lease Assignment and Subordination, Nondisturbance and Attornment Agreement, dated January 27, 2003, by and among Doe Family II LLC, 99 West, Inc., Double 9 Property III LLC, 99 Remainder III LLC and GE Capital Franchise Finance Corporation (incorporated by reference to Exhibit 10.39 of the Company’s Annual Report on Form 10-K for the year ended December 29, 2002) (File No. 0-18629)                                                                                                                                                  |
| 10.13         |         | Master Lease, dated December 4, 2001, by and between Double 9 Property IV LLC and Doe Family II LLC (incorporated by reference to Exhibit 10.40 of the Company’s Annual Report on Form 10-K for the year ended December 29, 2002) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                |
| 10.14         |         | First Amendment to Master Lease, dated February 1, 2002, by and between Double 9 Property IV LLC and Doe Family II LLC (incorporated by reference to Exhibit 10.41 of the Company’s Annual Report on Form 10-K for the year ended December 29, 2002) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                             |
| 10.15         |         | Assignment and Assumption of Lease and Acknowledgement of Master Lease Assignment and Subordination, Nondisturbance and Attornment Agreement, dated January 27, 2003, by and among Doe Family II LLC, 99 West, Inc., Double 9 Property IV LLC, 99 Remainder IV LLC and GE Capital Franchise Finance Corporation (incorporated by reference to Exhibit 10.42 of the Company’s Annual Report on Form 10-K for the year ended December 29, 2002) (File No. 0-18629)                                                                                                                                                    |
| 10.16         |         | Third Amended and Restated Credit Agreement, dated as of January 26, 2010, by and among O’Charley’s Inc., as Borrower, the Lenders referred to therein, Wachovia Bank, National Association, as Administrative Agent, Bank of America, N.A. as Syndication Agent, Regions Bank, as Documentation Agent, Wells Fargo Securities, LLC, Regions Bank and Banc of America Securities LLC, as Joint Lead Arrangers and Joint Book Running Managers (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the Commission on January 27, 2010) (File No. 0-18629)  |
| 10.17         |         | Form of Lease Agreement by and between CNL Funding 2001-A, LP, as landlord, and O’Charley’s Inc., as tenant. In accordance with Rule 12b-31 under the Exchange Act, copies of other lease agreements, which are substantially identical to Exhibit 10.1 in all material respects, except as to the landlord, the tenant, the property involved and the rent due thereunder, are omitted. (incorporated by reference to Exhibit 10.39 of the Company’s Registration Statement on Form S-4, Registration No. 333-112429-03)                                                                               |
| 10.18*        |         | Form of Incentive Stock Option Agreement (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended October 3, 2004) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.19*        |         | Form of Non-Qualified Stock Option Agreement (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q for the quarter ended October 3, 2004) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.20*        |         | Form of Restricted Stock Agreement for Employees (Time-Based Vesting) (incorporated by reference to Exhibit 10.3 of the Company’s Quarterly Report on Form 10-Q for the quarter ended October 3, 2004) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.21*        |         | Form of Restricted Stock Agreement for Employees (Performance-Based Vesting) (incorporated by reference to Exhibit 10.4 of the Company’s Quarterly Report on Form 10-Q for the quarter ended October 3, 2004) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.22*        |         | Form of Restricted Stock Agreement for Employees (Performance-Based Vesting) (incorporated by reference to Exhibit 10.37 of the Company’s Annual Report on Form 10-K for the year ended December 30, 2007) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.23*        |         | Form of Restricted Stock Agreement for Employees (Time-Based Vesting) (incorporated by reference to Exhibit 10.38 of the Company’s Annual Report on Form 10-K for the year ended December 30, 2007) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.24*        |         | Form of Restricted Stock Agreement for Directors (incorporated by reference to Exhibit 10.5 of the Company’s Quarterly Report on Form 10-Q for the quarter ended October 3, 2004) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.25*        |         | Form of Non-Qualified Stock Option (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q for the quarter ended April 19, 2009) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.26         |         | Lease, dated as of December 17, 2004, between Bellingham Mechanic, LLC and 99 Commissary, LLC and related Guaranty. (incorporated by reference to Exhibit 10.63 of the Company’s Annual Report on Form 10-K for the year ended December 26, 2004) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                |
| 10.27*        |         | Summary of Director and Executive Officer Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.28*        |         | O’Charley’s Inc. Deferred Compensation Plan (restated) (incorporated by reference to Exhibit 10.28 of the Company’s Annual Report on Form 10-K for the year ended December 27, 2009) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.29*        |         | First Amendment to the O’Charley’s Inc. Deferred Compensation Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.30*        |         | Executive Employment Agreement dated July 30, 2010, by and between O’Charley’s Inc. and David Head (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q for the quarter ended July 11, 2010) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                    |
| 10.31*        |         | Form of Executive Employment Agreement, dated November 6, 2007, between O’Charley’s Inc. and each of R. Jeffrey Williams, John R. Grady and Lawrence D. Taylor (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the Commission on November 9, 2007) (File No. 0-18629)                                                                                                                                                                                                                                                                                      |
| 10.32*        |         | Form of First Amendment to O’Charley’s Inc. Executive Employment Agreement, dated January 12, 2009 (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the Commission on January 16, 2009) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                  |
| 10.33*        |         | Form of Second Amendment to O’Charley’s Inc. Executive Employment Agreement, dated March 11, 2009 (incorporated by reference to Exhibit 10.55 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2008) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                               |
| 10.34*        |         | Amended and Restated Executive Employment Agreement, dated June 3, 2009, between O’Charley’s Inc and Jeffrey D. Warne (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the Commission on June 4, 2009) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                              |
| 10.35*        |         | General Release Agreement, dated June 17, 2010, by and between Jeffrey D. Warne and O’Charley’s Inc. (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended July 11, 2010) (File No. 0-18629)                                                                                                                                                                                                                                                                                                                                                  |
| 21            |         | Subsidiaries of the Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 23            |         | Consent of KPMG LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 31.1          |         | Certification of David W. Head, Chief Executive Officer of O’Charley’s Inc., pursuant to Section 302 of the Sarbanes- Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 31.2          |         | Certification of R. Jeffrey Williams, Interim Chief Financial Officer of O’Charley’s Inc., pursuant to Section 302 of the Sarbanes- Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 32.1          |         | Certification of David W. Head, Chief Executive Officer of O’Charley’s Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 32.2          |         | Certification of R. Jeffrey Williams, Interim Chief Financial Officer of O’Charley’s Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                           |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| *             |         | Management contract or compensatory plan or arrangement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

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SIGNATURES

|                     | Signature |                                            |   |                | Title |   |   |   | Date |   |
|--------------------------|-----------|-------------------------------------------------|--------|---------------------|-------|--------|--------|--------|------|--------|
| /s/DAVID W. HEAD         |      | Director, Chief Executive Officer and President |   | March 10, 2011 |
| David W. Head            |      | (Principal Executive Officer)                   |   |                |
| /s/ R. JEFFREY WILLIAMS  |      | Interim Chief Financial Officer and Treasurer   |   | March 10, 2011 |
| R. Jeffrey Williams      |      | (Principal Financial and Accounting Officer)    |   |                |
| /s/ PHILIP J. HICKEY, JR |      | Chairman of the Board                           |   | March 10, 2011 |
| Philip J. Hickey, Jr.    |      |                                            |   |                |
| /s/ ARNAUD AJDLER        |      | Director                                        |   | March 10, 2011 |
| Arnaud Ajdler            |      |                                            |   |                |
| /s/ WILLIAM F. ANDREWS   |      | Director                                        |   | March 10, 2011 |
| William F. Andrews       |      |                                            |   |                |
| /s/ DOUGLAS BENHAM       |      | Director                                        |   | March 10, 2011 |
| Douglas Benham           |      |                                            |   |                |
| /s/ GREGORY MONAHAN      |      | Director                                        |   | March 10, 2011 |
| Gregory Monahan          |      |                                            |   |                |
| /s/ DALE W. POLLEY       |      | Director                                        |   | March 10, 2011 |
| Dale W. Polley           |      |                                            |   |                |
| /s/ RICHARD REISS, JR    |      | Director                                        |   | March 10, 2011 |
| Richard Reiss, Jr.  |      |                                            |   |                |
| /s/ H. STEVE TIDWELL     |      | Director                                        |   | March 10, 2011 |
| H. Steve Tidwell         |      |                                            |   |                |
| /s/ ROBERT J. WALKER     |      | Director                                        |   | March 10, 2011 |
| Robert J. Walker         |      |                                            |   |                |
| /s/SHIRLEY A. ZEITLIN    |      | Director                                        |   | March 10, 2011 |
| Shirley A. Zeitlin       |      |                                            |   |                |

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