The Unexpected Lure of Tennessee: Starbucks Stock (NASDAQ:SBUX) Slips as Reasons for Move Emerge

Just last week, we heard that coffee giant Starbucks SBUX -0.47% ▼ was making a move to Tennessee, pulling jobs out of Seattle—which was essentially the birthplace of coffee culture in the United States back in the 1990s—and sending those jobs east. It turns out Starbucks had several good reasons for such a move. It did not cut much ice with shareholders, though, who sent Starbucks shares down modestly in Monday afternoon’s trading.

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It turns out that Nashville is an “ideal location” for Starbucks to move some corporate functions, according to chief operating officer Mike Grams. It is set to be part of a larger beachhead for Starbucks to expand throughout the American Southeast. Grams pointed out that the Nashville area offers “…a deep, talented and growing workforce…” which makes it especially desirable.

Of course, Starbucks may also have been attracted to the likelihood of lower corporate taxes, as Tennessee runs on a “fiscally conservative approach.” This, according to Tennessee Governor Bill Lee, allows the state to offer a low-cost and low-risk policy.

Welcoming Cherry Blossoms

Meanwhile out in Japan, cherry blossom season is firing up, and typically runs late March through May. Starbucks, meanwhile, is poised to take full advantage with a special experience at the Reserve Roastery Tokyo near the Meguro River.

The area is home to some of the best cherry blossom viewing sites in Japan, reports note, and thus Starbucks set up two special deals for those interested in engaging in the annual event. The Daytime Picnic Plan and the Evening Bread and Drink Plan are both available. The Daytime Picnic Plan gives customers access to “picnic-style sandwich-based food” made at the roastery’s Princi Italian bakery. Meanwhile, the Evening Bread and Drink Plan focuses on “…antipasti and bakery snacks” with a view of cherry blossoms glowing in dusk.

Is Starbucks Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 14 Buys, 10 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 2.11% loss in its share price over the past year, the average SBUX price target of $100.68 per share implies 2.95% upside potential.

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