UPDATE 1-Starbucks now says will keep breakfast sandwiches

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LOS ANGELES, July 25 (Reuters) - Starbucks Corp (SBUX.O: Quote, Profile, Research, Stock Buzz) said on Friday it would continue sales of hot breakfast sandwiches and that it changed the recipe to make their smell interfere less with the aroma of coffee.

Starbucks Chief Executive Howard Schultz had said in January that the company would pull hot breakfast sandwiches from stores later this year because customers complained about the overwhelming smell.

"...we are continuing to evolve our food offerings," Starbucks said in a statement.

"We have made ingredient changes to the current breakfast sandwich lineup. We have found small ingredient changes that address the aroma issues of our current breakfast sandwiches, and have implemented these already," the company said.

The changes reduce the amount of butter and eggs and replace the cheese on the sandwiches, which give a small sales boost to stores that offer them and keep customers from going elsewhere for food.

Nevertheless, sandwich sales yield less profit than coffee sales.

Starbucks, which has been grappling with higher costs, slower customer traffic and increasing competition, is closing 600 underperforming stores by early next year to boost sagging results.

The company is adding several new menu items in a bid to spur sales, including smoothies, energy drinks and healthy breakfast items.

Shares in Starbucks closed down 12 cents to $14.42 on the Nasdaq and have lost almost half of their value in the last 12 months. (Reporting by Lisa Baertlein; editing by Carol Bishopric)