Starbucks Buys Its Freedom

By Chris Hill – Nov 13, 2013 at 4:46PM

NASDAQ: SBUX

Starbucks

Market Cap

$99B

Today's Change

(-1.02%) -$0.91

Current Price

$87.84

Price as of April 25, 2024, 4:00 p.m. ET

You can't just rip up a contract when it doesn't suit you, even if you're Starbucks.

The following video is from Wednesday's MarketFoolery podcast, in which host Chris Hill and Motley Fool analysts Matt Koppenheffer and David Meier take a deep dive into the biggest stories of the day for Foolish investors.

Starbucks (SBUX -1.02%) is paying $2.8 billion to settle a dispute dating to 2010, when the company offered $750 million to break its contract with Kraft Foods to distribute its coffee to retailers. In the lead story on today's MarketFoolery, the guys look at why the market shrugged off a settlement costing Starbucks more than a year's worth of earnings, and highlight who the real winners were in this case.

Chris Hill owns shares of Starbucks. David Meier and Matt Koppenheffer have no position in any stocks mentioned. The Motley Fool recommends and owns shares of Starbucks. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.