The two-year battle pitted Sara Lee's Ball Park and Kraft Foods' Oscar Mayer hot dogs. Both alleged the other exaggerated their claims about being No. 1.
The sides announced Thursday they settled out of court nearly a month after their civil trial began.
Sara Lee spokesman Mike Cummins says the terms are confidential. But he says neither side paid money to the other.
The legal beef began when Sara Lee filed a lawsuit in 2009, singling out Oscar Mayer ads bragging its dogs beat Ball Park franks in a national taste test. Kraft countersued, accusing Sara Lee of running ads for Ball Parks with the tagline, "America's Best Franks," based on a food-industry award.