After having breakfast with Ellie, she tells Chuck he should break up with Sarah if he's unsure where they're going. Chuck then goes to Sarah's "work" and breaks up with her. Casey grabs them and they're given their new assignment, to try and extract some information off an a sexy male agent that Chuck nicknames Beefcake. The newly single Sarah is assigned to get the information, which is on his belt, by any means possible.
Chuck, Casey and Sarah go to a bar where the beefcake, err Cole, is and Sarah manages to pick him up and head up to his room in a few minutes. After Chuck has to painfully listen in on Sarah flirting with Cole, he eventually flashes on two Fulcrum agents on the elevator and Casey follows them up. When Sarah is being tied up by Cole and uses the codeword, Casey is in disposed and Chuck heads to the rescue. By the time Chuck breaks down the door, Sarah already has him in handcuffs and the three of them make their way to the rooftop. They end up being surprised by a helicopter that isn't theirs that tries to kill them. Cole tells Chuck he's undercover MI6 and Chuck frees him and they take down the helicopter.
The gang brings Cole back and the general encourages them to work with him to figure out how to read the chip. While Chuck wants to try and hack the chip, the rest of the gang goes out on a mission with Cole to try and continue his undercover operation and meet with Fulcrum. While they're gone, Chuck manages to hack the chip and it sets of a homing device which makes the Fulcrum agents capture Sarah and Cole and eventually Chuck. The three of them are being tortured to figure out who the Intersect is. While Chuck keeps trying to say it's him, Cole tries to save him by saying it's him. Chuck also proves he's unwilling to handle any torture while Cole has no problem, clearly impressing Sarah.
Casey ends up coming in to save the day, and the torture woman ends up killing herself before she gives up any info. The night, Sarah ends up kissing Cole while Chuck watches on a hidden camera. On his way out of there, Cole ends up being captured and Sarah tells Chuck they're now on 24 hour surveillance and have to pretend to be together again.
Meanwhile, Morgan can no longer handle Big Mike dating his mother and has been crashing at Chuck's. However, when he sleeps in the buff, he pisses off Ellie and Morgan and gets kicked out. At the end of the episode, Chuck offers to become roommates with Morgan and get their own place.
Jeff and Lester take over hiring duties when Big Mike disappears to "help out around the house" with Morgan's mother. They end up trying to hire a swimsuit model as the new "green shirt." They end up being excessively sleazy including Jeff wearing nothing but a robe as they interview. Big Mike ends up getting a phone call that they're being sued for sexual harassment at the end of the episode.