KBRA assigns ratings to Qdoba Funding's Series 2026-1 secured notes

Traders Union
All News
Financial News
Qdoba 2026-1 notes ratings

Highlights

KBRA assigned ratings to Qdoba Funding LLC’s Series 2026-1 A-1 LR, A-1 VFN, and A-2 Notes in a whole business securitization.
Proceeds from the new issuance will fully repay outstanding Series 2023-1 A-1 VFN, A-1 LR, and A-2 Notes, with KBRA withdrawing those ratings.
Qdoba’s securitization is backed by $1.3 billion in trailing 12-month system-wide sales from 841 locations as of January 18, 2026.

Securitization structure and ratings

As reported by Kroll Bond Rating Agency, KBRA assigns ratings to Qdoba Funding LLC’s Series 2026-1 transaction, including the Class A-1 LR, Class A-1 VFN and Class A-2 Notes, in a whole business securitization backed by the restaurant chain’s operating assets.

The deal marks Qdoba’s second securitization under this structure. In connection with the new issuance, the outstanding Series 2023-1 A-1 VFN, A-1 LR and A-2 Notes will be repaid in full, and KBRA is withdrawing those ratings.

The collateral package includes existing and future franchise and development agreements and related royalties and fees in the U.S. and Canada, as well as synthetic royalties, profits and related revenue from company-operated restaurants.

Brand scale and sector implications

Founded in 1995, Qdoba operates as the largest franchisor and the second-largest brand in the Mexican fast-casual restaurant category by system-wide sales. The company says its menu centers on customizable items such as burritos, burrito bowls, nachos and quesadillas, with toppings included at no additional cost.

As of the period ended Jan. 18, 2026, Qdoba’s system totals 841 locations, including 670 franchised units and 171 company-operated restaurants. Its footprint covers 45 U.S. states, Washington, DC, Puerto Rico, and 18 international locations across Canada, Japan and South Korea.

For the last 12-month fiscal period ended in the first quarter of 2026, the company generates about $1.3 billion in system-wide sales. That operating scale underpins the securitization model, which allows restaurant brands to raise financing against recurring franchise, royalty and operating income.

Our earlier coverage of the Greenhouse Apartments mortgage rating focused on an investment-grade assessment for a long-dated multifamily loan backed by a 140-unit property in Fullerton, California, supported by high occupancy and steady cash flow. We outlined key credit metrics such as loan-to-value, debt service coverage, and debt yield, and noted how property fundamentals and qualitative adjustments factored into the final rating outcome.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.