KBRA assigns preliminary ratings to the Series 2023-1 Class A-1-VFN Notes, Series 2023-1 A-1-LR Notes and Series 2023-1 Class A-2 Notes.

Qdoba 2023-1 is the inaugural securitization in which Qdoba Restaurant Corporation (Qdoba or the Company) will contribute substantially all of its revenue-generating assets to the Issuer as collateral for the offered notes. Similar to other master trust WBS transactions, the Issuer can offer subsequent series of notes if certain requirements in the transaction documents are met. The Issuer is issuing three note classes totaling $330.9 million (the Series 2023-1 Notes). The collateral includes existing and future franchise and development agreements and associated royalties and fees in the US and Canada, existing and future company-operated restaurant synthetic royalties and profits, other fees and income, and intellectual property. The proceeds from the offered notes will be used to refinance existing debt, pay transaction expenses, repay a portion of the outstanding preferred stock of the parent and for general corporate purposes.

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 burritos, burrito bowls, nachos and quesadillas, and serves various toppings free on entrees. As of July 9, 2023, Qdoba had 727 locations, of which 531 are franchised and 196 are company-owned, with 12 international locations in Canada. As of the last twelve-month period ended July 9, 2023 (LTM Q3 2023), the company generated approximately $1.1 billion in systemwide sales.

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Related Publications

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

Disclosures

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