Weight Watchers: Dollars from diets
Helping customers slim down adds profits to this company's bottom line.
More than two-thirds of adult Americans are overweight. By 2015, the number of overweight and obese people in the world is estimated to reach 3 billion.
A growing number of them are doing something about it -- as well as exercising more, dieting and eating better. That’s where Weight Watchers International (WTW), the world’s leading provider of weight-management services, comes into play.
It operates through a global network of company-owned and franchise operations. Weight Watchers already does business in 11 countries and it is expanding internationally.
U.S. News & World Report recently published its first-ever Best Diets rankings and Weight Watchers was ranked first among 20 different diet programs.
Many competitors are struggling, but not Weight Watchers, which emphasizes healthy eating, physical activity, behavior change and a support network.
Earnings are rising sharply, up 57% in the past year on a 25% increase in revenue. Over the last 12 months, customers have spent more than $1.8 billion on Weight Watchers’ branded products and services.
With more than four decades of weight management experience, Weight Watchers is among the most recognized and trusted brand names in the business.
The company recently has launched a powerful new marketing campaign and started an extensive public relations initiative to highlight new program innovations.
And, despite being around for almost 50 years, Weight Watchers is only just beginning to specifically market to men. As a spokesman, it is using former NBA great Charles Barkley. Barkley may do for Weight Watchers what William Shatner did for Priceline.
Enrollment is rising and now is the time to get aboard, before the next earnings report comes out next month. Typically, the first three months compose the biggest diet quarter of the year.
Weight Watchers probably will blow away the projected earnings numbers, just like the company did last April. Let’s buy WTW.
- Triple play in personalized medicine
- UnitedHealth: Baby-boomer buy
- Johnson & Johnson: Still a triple-A buy
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The solid report comes a month after the retailer closed all of its Canadian operations.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.