NEW YORK, July 9 (Reuters) - Drive-through coffee chain

Scooter's Coffee is exploring a sale that could value the

privately owned company at close to $1 billion, according to

four sources familiar with the matter.

Omaha, Nebraska-headquartered Scooter's is working with

investment bankers at Bank of America and R. W. Baird on the

process, the sources said, requesting anonymity to discuss

private deliberations.

The chain, still owned by founders Don and Linda Eckles,

generates nearly $500 million of annual revenue, one of the

sources said.

Bank of America declined to comment. Scooter's, Baird and

McCarthy Capital, which owns a stake in the company, did not

immediately respond to requests for comment.

Founded in 1998 in Bellevue, Nebraska, Scooter's now has

more than 850 stores in around 30 states. The chain uses a

franchise model, and the coffee is roasted by its affiliated

company Harvest Roasting.

Private equity firms have bought up several franchised

restaurants in recent years, finding their steady royalty fees

and less expensive operating costs attractive. Last year,

Blackstone Growth invested in drive-through coffee chain 7 Brew

while Blackstone's flagship private equity fund bought Jersey

Mike's Subs. Roark Capital acquired Dave's Hot Chicken earlier

this year and completed its acquisition of Subway last year.

Omaha, Nebraska-based middle market investment firm McCarthy

Capital bought its stake in Scooter's in 2018 to help it expand,

particularly through franchising. The chain is known for its

slogan, "Amazing People, Amazing Drinks... Amazingly Fast!"

Another drive-through coffee concept, Dutch Bros Inc. ( BROS )

, went public in 2021 at an over $5 billion valuation

after being owned by private equity firm TSG Consumer. It now

has a market capitalization of nearly $11 billion.