KBRA Assigns Preliminary Ratings to Qdoba Funding LLC, Series 2026-1 Senior Secured Notes

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to Qdoba Funding LLC (the Issuer), Series 2026-1 (Qdoba 2026-1), Class A-1 LR, Class A-1 VFN, and Class A-2 notes, a whole business securitization (WBS). Qdoba 2026-1 represents the issuer’s second securitization in which Qdoba Restaurant Corporation (Qdoba, the Manager, or the Company) contributed substantially all of its revenue-generating assets to the Issuer as collateral for the offered notes. In conjunction with the issuance of the Series 2026-1 Notes, the Series 2023-1 A-1 VFN, A-1 LR Notes, and A-2 Notes are expected to be repaid, at which time KBRA expects to withdraw the ratings.

Founded in 1995, Qdoba is the largest franchisor and second-largest brand in the Mexican fast-casual restaurant category based on system-wide sales (SWS). The Company is known for its customizable menu offerings, including burritos, burrito bowls, nachos and quesadillas, with a variety of toppings included at no additional cost. As of the period ended January 18, 2026 (Fiscal Q1 2026), Qdoba’s system totaled 841 locations, of which 670 are franchised and 171 are Company-operated. The Company’s footprint spans 45 US States, Washington, DC, Puerto Rico, and has an international presence of 18 locations across Canada, Japan and South Korea. As of the last twelve-month (LTM) fiscal period ended Q1 2026, the Company generated approximately $1.3 billion in systemwide sales (SWS). The collateral includes existing and future franchise and development agreements and associated royalties and fees in the U.S. and Canada, existing and future Company-operated restaurant synthetic royalties and profits, and related revenues.

To access ratings and relevant documents, click here.

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Related Publications

• TSC SPV Funding, LLC Series 2024-1 New Issue Report
• TSC SPV Funding, LLC Surveillance Report

Methodologies

• ABS: Whole Business Securitization (WBS) ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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