This story has been updated from 9:42 a.m. with share price movement and new information.
NEW YORK ( TheStreet) -- Starbucks (SBUX) shares regained positive ground at midday despite settling a dispute with Mondelez International (MDLZ), the former owner of Kraft Foods, by agreeing to pay $2.75 billion for terminating the companies' coffee-selling contract.
After tumbling in pre-market trading and stumbling at market open, at midday the stock seems to be in positive territory. Shares of Starbucks were up 0.07% to $80.68 at last check. Mondelez shares were rising 1.8% to $33.02, at last check.
"The stock could be down on the news as some investors may have been hoping for a settlement closer to $1 billion than $3 billion, and we would be buyers on any dip," Jefferies analysts Andy Barish writes in a note. Jefferies has a "buy" rating on the stock."SBUX remains our favorite pick in restaurants, given its strong category momentum, tangible sales drivers and visible
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