v3.26.1
INDEBTEDNESS
 9 Months Ended
Jul. 05, 2026
Debt Disclosure [Abstract]  
INDEBTEDNESS INDEBTEDNESS
Long-term debt obligations consist of the following (in thousands):
July 5,
2026		September 28,
2025
Series 2019-1 4.476% Fixed Rate Class A-2-II Notes
$— $262,625 
Series 2019-1 4.970% Fixed Rate Class A-2-III Notes
426,375 429,750 
Series 2022-1 3.445% Fixed Rate Class A-2-I Notes
23,356 511,500 
Series 2022-1 4.136% Fixed Rate Class A-2-II Notes
503,250 511,500 
Series 2026-1 7.624% Fixed Rate Class A-2 Notes
500,000 — 
Series 2026-1 Variable Funding Notes, variable interest rate of 6.946% at July 5, 2026
39,000 — 
Finance lease obligations and other debt3 208 
Total debt1,491,984 1,715,583 
Less current maturities of long-term debt(44,160)(29,458)
Less unamortized debt issuance costs(19,157)(11,890)
Long-term debt$1,428,667 $1,674,235 
On January 9, 2026, the Company prepaid $105.0 million of its Series 2019-1 Class A-2-II Notes using proceeds from the Del Taco Sale. On June 10, 2026, the Company prepaid an additional $110.0 million of its existing Series 2019-1 Class A-2-II Notes using proceeds from the withdrawal of excess COLI funding as well as cash on hand.
Securitization refinancing transaction — On June 23, 2026, Jack in the Box Funding, LLC (the “Master Issuer”), a limited-purpose, bankruptcy-remote, wholly owned indirect subsidiary of the Company, completed its financing transaction and issued $500.0 million of its 2026 Class A-2 Notes. In connection with the issuance of the 2026 Class A-2 Notes, the Master Issuer also entered into a revolving financing facility of Series 2026-1 Variable Funding Senior Secured Notes, Class A-1 (the “Variable Funding Notes”), which allows for the drawing of up to $150.0 million under the Variable Funding Notes, which include certain instruments, including a letter of credit facility. The 2026 Class A-2 Notes and the Variable Funding Notes are referred to collectively as the “2026 Notes.” The 2026 Notes were issued in a privately placed securitization transaction and are secured on substantially the same basis as the Company's existing securitized notes.
Net proceeds from the sale of the 2026 Class A-2 Notes were used to repay in full the remaining $46.1 million in aggregate outstanding principal amount of the Company’s Series 2019-1 Class A-2-II Notes, together with unpaid interest. The Company also paid $479.9 million of its Series 2022-1 Class A-2-I Notes, and a portion of its unpaid interest. As a result of the refinancing transaction, the Company recorded a loss on the early extinguishment of debt of $1.3 million during the quarter which was comprised of the write-off of certain deferred financing costs and is presented in “Interest expense, net” in the condensed consolidated statement of earnings (loss).
In connection with the 2026 Class A-2 Notes, the Company capitalized $11.7 million of debt issuance costs, which are being amortized as interest expense utilizing the effective interest rate method through the May 2031 Anticipated Repayment Date. There were also $1.4 million of debt issuance costs related to our Variable Funding Notes, which are presented within “Other assets, net” and are being amortized using the straight-line method through May 2031.
2026 Class A-2 Notes — Interest and principal payments on the 2026 Class A-2 Notes are payable on a quarterly basis. Similar to our 2019 and 2022 Notes, the requirement to make quarterly principal payments is subject to certain financial conditions set forth in the Indenture. Quarterly principal payments may be suspended when the HoldCo Leverage Ratio, which is a measure of outstanding debt to earnings before interest, taxes, depreciation, and amortization, adjusted for certain items (as defined in the Indenture), is less than or equal to 5.0x. Exceeding the leverage ratio of 5.0x does not violate any covenant related to the Notes. The Company has a leverage ratio of greater than 5.0x and, accordingly, is making the scheduled amortization payments on its 2019, 2022 and 2026 Notes. The final maturity date of the 2026 Class A-2 Notes is May 2056, but, unless earlier prepaid to the extent permitted under the Indenture, the Anticipated Repayment Date of the Class A-2 Notes is May 2031. The Anticipated Repayment Date of the 2019-1 Class A-2-III Notes is August 2029, and the 2022-1 Class A-2-I Notes and the 2022-1 Class
A-2-II Notes are February 2027 and February 2032, respectively. If the Master Issuer has not repaid or redeemed the Notes prior to their respective Anticipated Repayment Dates, additional interest will accrue pursuant to the Indenture.
The Company may also be required to make additional prepayments of principal on the 2026 Class A-2 Notes when the Senior ABS Leverage Ratio, as defined in the Indenture, is greater than 5.25x. As of July 5, 2026, the Senior ABS Leverage Ratio is greater than 5.25x and as a result, cash sweeping prepayments of $23.3 million are included in “Current maturities of long-term debt” in our condensed consolidated balance sheets.
Variable Funding Notes — In connection with the issuance of the Variable Funding Notes and its entry into the Variable Funding Note Purchase Agreement, the Master Issuer terminated the commitments with respect to its existing $150 million Series 2022-1 Variable Funding Notes. As of July 5, 2026, $56.4 million of letters of credit were outstanding against the Variable Funding Notes, which relate primarily to interest reserves required under the Indenture. During the third quarter of 2026, we borrowed $39.0 million under the Variable Funding Notes. As of July 5, 2026, unused borrowing capacity under our Variable Funding Notes was $54.6 million.
Maturities of long-term debt — Assuming repayment by the Anticipated Repayment Dates and based on an estimate of future leverage ratios as of July 5, 2026, principal payments on our long-term debt outstanding at July 5, 2026 for each of the next five fiscal years and thereafter are as follows (in thousands):
Remainder of 2026$6,030 
202773,728 
202835,500 
2029432,250 
203016,000 
Thereafter928,476 
$1,491,984 
The maturities table above assumes that the HoldCo Leverage Ratio will remain above 5.0x for the duration, and that the Senior ABS Leverage Ratio would remain above 5.25x but below 6.25x through February 2028.