Starbucks’ Schultz vows to stir cold stock

Starbucks Corp. outlined long-awaited plans to turn around its business Wednesday, but a new coffee roast and loyalty program for frequent customers failed to excite investors, who sent its shares down 4%.

Starbucks said it would woo cash-strapped consumers by roasting coffee a new way, investing in new espresso equipment and delving into new categories, such as the health and wellness business.

Chief Executive Howard Schultz told investors that the U.S. economy was in a tailspin and there was no “silver bullet” for Starbucks, whose stock has dropped 40% over the last 12 months. However, he said Starbucks would not use the state of the economy as an excuse.

Earlier this year, Schultz said Starbucks would close underperforming stores and cut its 2008 new-store plan in the U.S. to 1,175 from 1,600 while increasing the number of international store openings by 75 outlets to 975.

In January, sales at established U.S. stores fell 1%.

On Wednesday, Schultz said Starbucks planned to “reaffirm our coffee authority” and make the chain feel less corporate. For instance, baristas will be able to see customers over new low machines.

A new coffee blend is scheduled for an April debut, and a website, mystarbucksidea .com, will allow customers to submit ideas to the company and vote on them. Under the loyalty program to begin in mid-April, extras such as caramel sauce or soy milk will be free, Starbucks said.

Schultz also apologized for Starbucks’ recent performance. “I humbly recognize and share both your concern and your disappointment in how the company has performed and how that has affected your investment in Starbucks,” he told investors. “I promise you this will not stand.”

Shares of Starbucks closed down 74 cents at $17.50.