Qdoba completes $435 million whole business securitization

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The capital will be used to support the fast-casual Mexican chain’s continued expansion

June 1, 2026

Qdoba has closed a $435 million whole business securitization that was secured to fund the chain’s continued expansion. It follows a $527 million continuation fund raised in 2025 by Butterfly Equity, which acquired the Mexican fast-casual chain in 2022. 

It also builds on Qdoba’s inaugural $305 million securitization fund in late 2023 from Butterfly.

Qdoba is targeting approximately 2,000 restaurants, with more than 650 new restaurant commitments currently signed. In 2025, its domestic system finished with 827 units and $1.3 billion in sales, according to Technomic, marking a 6.4% and 8% year-over-year increase. These numbers outpaced the rest of the fast-casual Mexican category, including Chipotle, which grew sales by 5.5% last year. 

The $435 million whole business securitization consists of $360 million of Senior Notes and a $75 million Variable Funding Note, through Qdoba Funding LLC. Proceeds from the transaction will be used primarily to refinance existing debt at a reduced cost of capital and enhance overall liquidity. The additional liquidity will support continued investment in growth initiatives, including restaurant remodels, digital makelines, and other technology initiatives.

“This transaction reflects the transformative growth QDOBA has experienced since its 2023 inaugural issuance,” CEO John Cywinski said in a statement. “It positions us to invest with confidence as we scale in the most attractive category in the restaurant industry.”

Francesco D’Arcangelo, managing director at Butterfly Equity, said the transaction marks an “exciting milestone” while also providing additional flexibility to accelerate growth. 

Whole business securitization funding has become more common in the restaurant industry of late, but it also comes with higher risks as they enable companies to take on a lot of debt. This risk is evidenced by recent bankruptcies from Hooters, TGI Fridays and Fat Brands, which all leveraged the funding strategy.  

Contact Alicia Kelso at [email protected]

Follow her on TikTok: @aliciakelso 

About the Author

Alicia Kelso

Executive Editor, Nation's Restaurant News

Alicia Kelso is the executive editor of Nation's Restaurant News. She began covering the restaurant industry in 2010 for QSRweb.com, FastCasual.com, and PizzaMarketplace.com. When her son was born, she left the industry to pursue a role in higher education, but swiftly returned after realizing how much she missed the space. In filling that void, Alicia added a contributor role at Restaurant Dive and a senior contributor role at Forbes.
Her work has appeared in publications around the world, including Forbes Asia, NPR, Bloomberg, The Seattle Times, Crain's Chicago, Good Morning America, and Franchise Asia Magazine.
Alicia holds a degree in journalism from Bowling Green State University, where she competed on the women's swim team. In addition to cheering for the BGSU Falcons, Alicia is a rabid Michigan fan and will talk about college football with anyone willing to engage. She lives in Louisville, Kentucky, with her wife and son.

Follow her on TikTok @aliciakelso

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