By Abigail Summerville

new york limo service 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. If you treasured this article and you also would like to obtain more info concerning JetBlack nicely visit the internet site. 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. , 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. (Reporting by Abigail Summerville in new york limo service York; Editing by Svea Herbst-Bayliss and Cynthia Osterman)