KBRA assigns preliminary ratings to Jack in the Box Funding 2026 notes
Jack in the Box is moving ahead with a new whole business securitization tied to its restaurant franchise system and company-operated stores in the western and southern U.S. The proposed Series 2026-1 issuance is set to refinance part of the issuer's existing debt stack while leaving other outstanding notes in place.
Highlights
- KBRA assigns preliminary ratings to Jack in the Box Funding, LLC's Series 2026-1 Class A-1 and Class A-2 Notes in a whole business securitization.
- Proceeds from new notes will be used to repay Series 2019-1 Class A-2-II and Series 2022-1 Class A-1 Notes, with KBRA planning to withdraw those ratings after repayment.
- Jack in the Box's 2,128-location system generated approximately $4.1 billion in annual system-wide sales as of April 12, 2026, with a 93% franchise concentration.
Preliminary ratings and refinancing plan
As reported by Kroll Bond Rating Agency, KBRA assigns preliminary ratings to Jack in the Box Funding, LLC Series 2026-1 Class A-1 and Class A-2 Notes in a whole business securitization transaction.The agency says its analysis indicates that existing credit enhancement for the notes and projected cash flows are sufficient to support the ratings after the Series 2026-1 issuance. In connection with the new notes, the Series 2019-1 Class A-2-II and Series 2022-1 Class A-1 Notes are expected to be repaid, and KBRA expects to withdraw those ratings at that point.
KBRA also says it anticipates affirming the ratings on the issuer's outstanding Series 2019-1 Class A-2-III Notes, Series 2022-1 Class A-2-I Notes and Series 2022-1 Class A-2-II Notes once the repayment takes place.
Restaurant system scale supports securitization
Jack in the Box operates as a franchisor and restaurant operator under its main brand, providing the operating base behind the securitization structure. As of the period ended April 12, 2026, the system comprises 2,128 locations generating about $4.1 billion in annual system-wide sales.Of those restaurants, 1,979 are franchised and 149 are company operated, equivalent to about 93% and 7% of total locations, respectively. The portfolio's concentration in the western and southern U.S. remains a defining feature for investors assessing geographic exposure and cash flow stability.
Our earlier article on KBRA’s rating actions for the Aventura Mall Trust 2018-AVM CMBS transaction outlined how stronger mall performance supported multiple class upgrades and an affirmation. We noted that rising occupancy and higher base rent improved key credit metrics such as KLTV and cash flow, alongside the quality of the collateral and sponsor strength.
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