NEW YORK (TheStreet) --Shares of Keurig Green Mountain Inc. (GMCR) are climbing higher by 7.88% to $127.03 in early morning trading on Friday, after the company announced it has entered into a licensing agreement with Kraft Foods Group Inc. (KRFT) .
The multi-year licensing agreement is for Kraft's coffee to be manufactured and distributed in Keurig's one cup brewing packs.
Financial terms of the deal were not disclosed.
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The Kraft coffee packs are scheduled to begin selling this fall.
Shares of Kraft are up 0.31% to $57.44 this morning.
Separately, TheStreet Ratings team rates KEURIG GREEN MOUNTAIN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate KEURIG GREEN MOUNTAIN INC (GMCR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: