Corporate Office Pivot Gives Starbucks Stock (NASDAQ:SBUX) a Boost

Coffee giant Starbucks SBUX +1.14% ▲ is making plenty of changes these days, and one more just arrived as Starbucks shifted corporate offices and sent several Seattle-area jobs out to perhaps the most unlikely destination yet: Tennessee. Oddly, this seemed to have a positive impact on investors, as evidenced by the fractional rise in Starbucks shares seen in Wednesday afternoon’s trading.

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Starbucks’ planned move to Tennessee seems to be limited in scope, as for now, only jobs connected to “…direct and indirect sourcing operations teams within the supply chain…” are getting moved. Seattle, for its part, will remain Starbucks’ North America and Global Support headquarters. All of this may change further later, as Starbucks noted that it would continue to evaluate which roles, if any, should also be moved to Nashville, where the new corporate facility is going in.

Interestingly, Starbucks is not taking this as an opportunity for a quiet reduction in force scheme. It is offering the option to move as well as relocation help for the employees who decide to move from Seattle to Nashville. And this may not be the only move, either, as Starbucks reports plans to “…grow even further across North America.”

Changing up the Chai

Chai has long been a welcome alternative for a lot of beverage enthusiasts. That combination of spice and gentle, almost creamy flavor tends to catch attention. But Starbucks is shaking up this drink of choice for so many, and offering more options beyond the Chai Latte.

Interestingly, the new chai calls for Starbucks to actually dial down the sweetness, reports note, with the new chai recipe offering cardamom, cinnamon, ginger, and just a bit of honey. Customers can now modify that sweetness by changing the standard number of pumps, or by adding different syrups like vanilla to underscore spicy flavors. The result is highly customizable, but should be well within the baristas’ collective wheelhouse to make and serve.

Is Starbucks Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 15 Buys, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 13.44% loss in its share price over the past year, the average SBUX price target of $100.59 per share implies 3.13% upside potential.

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