Starbucks CEO says company on track

Seattle Starbucks Corp. is on track to hit its target of $500 million in cost savings this fiscal year as it closes stores and sheds staff, chief executive Howard Schultz said at the company’s annual shareholder meeting.

Starbucks is also seeing signs of success in its attempts to adapt to the tough economy, according to Schultz. It has launched several initiatives to appeal to new frugal-minded customers, including rolling out more inexpensive breakfast food and drink combos and a new line of instant coffee.

“We are seeing the beginnings of things starting to gain traction on many of the initiatives we put in place," Schultz said.

Schultz promised shareholders the coffee company will succeed despite the global downturn by taking on its competitors and offering customers a better deal.