KBRA Assigns Preliminary Ratings for GoTo Foods and Jamba Juice Series 2026-1 Securitizations
KBRA has assigned preliminary credit ratings to the Class A-1 Variable Funding Notes (VFN) and Class A-2 Notes issued by GoTo Foods Funding LLC and Jamba Juice Funding LLC under the Series 2026-1 transaction. The issuance represents the latest financing activity within the company’s whole business securitization (WBS) platform and reflects the continued strength of the franchised restaurant system that supports the securitized assets.
The preliminary ratings were assigned following a comprehensive review of the transaction structure, financial performance, franchise network stability, and projected cash flows. According to KBRA’s analysis, the existing credit enhancement mechanisms and anticipated cash flow generation remain sufficient to support the assigned ratings after the completion of the Series 2026-1 issuance.
The transaction forms part of GoTo Foods’ ongoing capital management strategy and demonstrates the company’s ability to access the securitization market through a diversified portfolio of restaurant brands. Whole business securitization structures have become a popular financing tool within the restaurant industry because they allow companies to leverage franchise-generated revenues and intellectual property assets while maintaining operational flexibility.
Refinancing Existing Debt Obligations
As part of the Series 2026-1 transaction, several previously issued notes are expected to be repaid in full. Specifically, the Series 2017-1 Class A-2-II Notes, Series 2022-1 Class A-1 Notes, and Series 2023-1 Class A-1 Notes are anticipated to be retired following the closing of the new issuance.
Once these obligations have been repaid, KBRA expects to withdraw the ratings associated with those securities, reflecting their redemption and removal from the outstanding debt portfolio.
At the same time, KBRA indicated that it expects to affirm the ratings of several remaining outstanding notes within the securitization structure. These include the Series 2022-1 Class A-2 Notes, Series 2023-2 Class A-2 Notes, and Series 2024-1 Class A-2 Notes. The anticipated affirmations highlight the agency’s view that the underlying business continues to generate sufficient revenue and cash flow to support existing debt obligations.
Strength of the GoTo Foods Platform
GoTo Foods has evolved into one of the largest multi-brand restaurant franchising platforms in North America and internationally. The company operates a portfolio of seven well-established restaurant and foodservice brands that serve a broad range of consumer preferences and dining occasions.
The portfolio includes:
- Auntie Anne’s
- Carvel
- Cinnabon
- Jamba
- McAlister’s Deli
- Moe’s Southwest Grill
- Schlotzsky’s
These brands collectively provide a highly diversified mix of food and beverage offerings, spanning multiple restaurant categories. The system includes snack foods, bakery products, frozen desserts, smoothies and juices, deli-style meals, sandwiches, and Mexican-inspired cuisine.
This diversification is considered a significant strength within the securitization framework because it reduces reliance on any single concept, menu category, or customer segment. Different brands serve different dayparts and consumer occasions, helping stabilize overall system sales during varying economic conditions.
Extensive Global Footprint
The securitized restaurant system supporting the transaction includes approximately 7,200 locations operating across all 50 U.S. states and 71 countries and territories worldwide.
The broad geographic footprint provides an additional layer of diversification, reducing exposure to regional economic downturns and localized market disruptions. The system benefits from both domestic and international growth opportunities while maintaining a substantial presence in high-traffic venues such as shopping malls, airports, universities, travel centers, and urban retail districts.
A major strength of the platform is its franchise-focused operating model. As of the last twelve months (LTM) ended March 29, 2026, approximately 98% of all locations within the system were franchised based on unit count.
Highly franchised systems are often viewed favorably in securitization structures because they generate predictable royalty and franchise fee income while requiring less capital investment than company-operated restaurant models. This asset-light strategy can support more stable cash flows and stronger debt service coverage metrics.
Strong System-Wide Sales Performance
For the twelve-month period ending March 29, 2026, the GoTo Foods restaurant network generated approximately $4.1 billion in system-wide sales (SWS).
System-wide sales represent the total revenue generated by franchised and company-operated restaurants across the network and serve as a key indicator of brand health, consumer demand, and franchisee performance.
The substantial sales volume demonstrates the scale of the platform and highlights the continued relevance of its brands within the competitive quick-service and fast-casual restaurant sectors. Strong sales performance also supports royalty revenue generation, which ultimately serves as a primary source of repayment for securitized debt holders.
KBRA’s analysis considered both historical performance and future expectations for system sales growth, franchise development, brand strength, and operational stability. The agency concluded that projected cash flows remain sufficient to support the obligations associated with the new notes and the existing debt structure.
Credit Analysis and Methodologies
In assigning the preliminary ratings, KBRA applied its established analytical frameworks for structured finance transactions. The review included an evaluation of cash flow durability, franchise network performance, operational risks, brand strength, and debt servicing capacity.
Among the methodologies utilized were:
- ABS: Whole Business Securitization (WBS) Global Rating Methodology
- Structured Finance: Global Structured Finance Counterparty Methodology
These methodologies provide a framework for assessing the creditworthiness of securitized restaurant systems and other franchise-based businesses that rely on recurring royalty streams and intellectual property assets.
KBRA also evaluated the effectiveness of credit enhancement features embedded within the transaction structure. Such enhancements are designed to provide protection for investors by mitigating potential declines in cash flow or operational performance.
Additional Disclosures and Rating Considerations
The rating agency noted that additional information regarding key credit considerations, sensitivity analyses, and environmental, social, and governance (ESG) factors is available in the detailed rating report accompanying the transaction.
Sensitivity analyses examine how various factors could influence future ratings and identify conditions that may lead to rating upgrades or downgrades. These analyses help investors understand potential risks associated with changes in business performance, economic conditions, or industry dynamics.
KBRA further stated that comprehensive information regarding data sources, rating assumptions, analytical models, and methodologies used in determining the ratings is available through its official disclosure documentation.
The preliminary ratings assigned to the GoTo Foods Funding LLC and Jamba Juice Funding LLC Series 2026-1 notes reflect confidence in the strength of the company’s diversified restaurant portfolio, extensive franchise network, and ability to generate stable recurring cash flows. With billions of dollars in annual system-wide sales, a highly franchised operating structure, and a broad international presence, GoTo Foods remains well-positioned to support its securitization platform and meet its financial obligations while continuing to pursue long-term growth opportunities.
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