The move is one of three strategic initiatives for the company,which also plans to obtain $1.25 billion in unsecured debt throughWachovia Securities to buy back up to $800 million of it stock.CBRL Group operates 536 Cracker Barrel Old Country Storerestaurants and gift shops in 41 states and 133 company-operatedand 24 franchised Logan's Roadhouse restaurants in 20 states.

The divestiture of Logan's is expected to be completed by theend of the fourth quarter of fiscal 2006 or during the firstquarter of fiscal 2007, according to a company statement. TheWachovia loan, which will include $800 million conventional bankterm loan, a $250 million bank revolving credit facility, and a$200 million delayed draw term loan, is expected to close by May15, 2006.

"By divesting Logan's, we're recognizing that a developinggrowth concept represents a different risk-reward opportunity thanCracker Barrel with its strong, established brand, more moderategrowth rate and strong cash generating capabilities," said CBRLGroup Chairman, President and CEO Michael Woodhouse during aninvestor conference call. "With the divestiture of Logan's, we'llbe in a position to focus on the considerable opportunities that wesee to improve the performance of the Cracker Barrel business as itis today, and at the same time, develop opportunities to capitalizeon the strength of the Cracker Barrel brand in the eyes of theconsumer."