Yahoo  Sep 4  Comment 
Weight Watchers International, Inc. (NYSE: WTW ) deserves credit for  turning around its core business , but the stock shouldn't be bought by investors at this time, according to Goldman Sachs. The Analyst ...
Benzinga  Aug 29  Comment 
Major changes are afoot at Weight Watchers International, Inc. (NYSE: WTW), and one Wall Street analyst believes Weight Watcher’s explosive 2018 growth is just the beginning of the long-term story. The Analyst Oppenheimer analyst Brian Nagel...
Market Intelligence Center  Aug 23  Comment 
Denis F Kelly, a member of the board of directors at Weight Watchers International (WTW), bought 4,000 shares of the... Read More > The post Weight Watchers International board member buys $286k in shares appeared first on InvestorsObserver.
Market Intelligence Center  Aug 21  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Weight Watchers (WTW). Look at the Sep 21, 2018 $70 covered call for a net debit in the $67.92 area. This trade has a duration of...
Motley Fool  Aug 12  Comment 
Shares have sold off almost 20% after reporting earnings -- is the Weight Watchers growth story over?
Motley Fool  Aug 7  Comment 
Find out which of these stocks had the biggest losses.
Motley Fool  Aug 7  Comment 
The weight-loss company boosted full-year guidance but lost subscribers in the second quarter.
guardian.co.uk  Aug 6  Comment 
Membership increases by 27% but share price dips as revenue growth falls short of forecast Weight Watchers International continued its impressive subscriber growth through the second quarter, growing 27.6%, or 1 million, to 4.5 million over the...
Market Intelligence Center  Aug 4  Comment 
Weight Watchers (WTW) has enjoyed a breakout year in 2018, with shares appreciating a massive 91.5% year to date. The company will report its second-quarter numbers of August 6, with... Read More > The post Weight Watchers reports Q2 results...


Weight Watchers International (NYSE: WTW) is a global company that offers a range of products and services related to dieting, weight loss, and weight maintenance. Weight Watchers' presence in over 25 countries worldwide has made it the top global provider of weight loss services, which include meeting services, food products, recipes, and publications. The obesity trend in the United States and the world at large has greatly expanded the weight loss industry as a whole. Around 1.3 million members attend around 50,000 Weight Watchers meeting and WeightWatchers.com has 763,000 subscribers.[1][2] The company generated $1.4 billion in revenue and $177 million in net income in 2009.[3]

Much of the company's success, however, is predicated on the willingness of consumers to spend on losing weight - a willingness which tends to decrease during weak economic environments. As a result of the sluggish economy, the company's net revenue fell 8.9% in 2009.[3] Furthermore, medical weight loss alternatives, fad diets, economic downturns, and competition from companies such as NutriSystem (NTRI) , Nestle (NSRGY) (who owns Jenny Craig and Lean Cuisine) and Kraft Foods (KFT) (who provide South Beach products) also pose a threat to Weight Watcher's success.

Company Overview

Weight Watchers is the number one international provider of weight management services with sales in over 25 countries. The growing trend of obesity , accompanied by greater health concerns and wealth consciousness, has enriched and expanded the weight management industry as a whole, which pulls in about $59 billion in the US alone.[4] The majority of Weight Watcher's revenues come from meeting fees.

Business Segments[5]

Weight Watchers' revenues come from four major sources: meeting fees through its officially licensed support groups, product sales (recipe books, Points calculators, pre-packaged meals, etc.), internet revenues, and licensing and franchise royalties.

Meeting Fees (58% of net sales): Weight Watcher's largest revenue source is its meeting fees, which members pay in order to attend weekly support and goal-setting meetings with other members and a "Leader." This fees vary according to the meeting location and financing options available; however, overall membership figures are the most obvious trend to look to when considering whether or not these revenues will continue to increase.[6]

Product Sales (20% of net sales): The company's second largest source of revenues is product sales. Weight Watchers sells products like pre-packaged meals, bars, snacks, cookbooks, and POINTS calculators and POINTS value guides (both related to the POINTS system that Weight Watchers members use to gauge food intake). The majority of these product sales are made to members of the company's weekly meeting system and its franchises. As a result, the success of the company's product sales is largely based on the success of its efforts to increase its meeting and franchise membership.

Internet Revenues (14% of net sales): Weight Watchers has taken advantage of the obesity trend in the United States to focus on drawing in long-term customers as subscribers, with almost 80% of U.S. Internet content revenue coming from subscriptions versus individual sales. The company's website draws income from the sale of subscriptions and advertising space.

Licensing & Franchise Royalties (7% of net sales): Weight Watchers licenses its brand and other intellectual property for certain foods and products to franchises and cooperative companies. In addition, the company draws revenue from royalty fees paid by its franchises (typically 10% of their meeting fee revenues), while also earning income from magazines and third-party advertisements in its publications. Weight Watchers has established partnerships with a number of companies in related fields.

Business Growth

FY 2009 (ended January 2, 2010)[3]

  • Net revenue fell 8.9% to $1.4 billion.
  • Net income fell 13% to $177 million.

Trends and Forces

U.S. economic fluctuations exert an influence on consumers' discretionary spending on weight management

A sluggish US economy tends to have an adverse affect on the weight loss industry. As consumers lose discretionary funds, luxuries like weight loss programs and dieting products lose their priority. As Weight Watchers CEO David Kirchoff noted, "when consumers are facing a sudden crisis over their savings, livelihood, and standard of living, the natural inclination is to comfort eat, not to lose weight."[7] Due to the sluggish economy, the company's net revenues fell 8.9% in 2009.[3]

The obesity trend in the United States and abroad boosts demand for Weight Watchers' products

The obesity trend in the United States and the world at large has greatly expanded the weight loss industry as a whole. Worldwide, it is estimated that the number of overweight and obese people is around 1.6 billion. According to the Marketdata Enterprises, 68% of Americans over the age of 19 are considered overweight of which half are considered obese. As a result, the weight management industry generates $59 billion in revenue annually in the US alone.[4] In the US, the company generates $916 million in revenue.[8] World-wide, Weight Watchers has taken advantage of this trend and the internet to focus on drawing in longterm customers as subscribers. The company has 763,000 active subscribers.[2]

Fad diets, competing weight loss services companies, and medical offerings provide alternatives to Weight Watcher's services and hurt its sales growth

Weight Watchers faces a number of competitors in the weight loss field, which include: self-help weight management regimens and other self-help weight management products and publications such as books, tapes and magazines; commercial weight management programs; Internet weight management approaches; dietary supplements and meal replacement products; weight management services administered by doctors, nutritionists and dieticians; surgical procedures; the pharmaceutical industry; government agencies and non-profit groups that offer weight management services; and fitness centers. Medical developments, such as the weight loss drug Alli, have caused major dips in the weight loss market.


Weight Watchers is the world's largest provider of weight loss and weight management products, and the diversity of its products and services has brought it competition, both direct and indirect, from a variety of sources. Though the company faces indirect competition from trend diets and prescription/non-prescription weight loss supplements, its main competitors are Nestle (NSRGY), the company that owns the Jenny Craig and Lean Cuisine brands, NutriSystem (NTRI), and LA Weight Loss.

  • NutriSystem (NTRI): NutriSystem offers customers a home-delivery meal program that includes balanced, pre-prepared, portion-controlled (smaller) meals.
  • LA Weight Loss: LA Weight Loss offers a website similar to Weight Watchers' in that it seeks to draw in subscribers to the LA Weight Loss and dieting program, which operates out of centers around the country.
  • Slimming World: In Britain, Slimming World is bigger than Weight Watchers, with 7,000 groups run by 2,700 self-employed weight loss Consultants who have all lost weight following an eating plan based on the principles of satiety. The plan encourages members who attend group to choose healthy, filling foods without having to count, weigh or measure and was started by Margaret Miles-Bramwell in 1969.


  1. WTW 2009 10-K "Overview" pg. 1
  2. 2.0 2.1 WTW 2009 10-K "Weight Watchers eTools" pg. 4
  3. 3.0 3.1 3.2 3.3 WTW 2009 10-K "Selected Financial Data" pg. 26
  4. 4.0 4.1 2009 WTW 2009 10-K "The Global Weight Management Market" pg. 1-2
  5. WTW 2009 10-K "Overview" pg. 29-30
  6. | Weight Watchers.com, "How Weight Watchers Works - Meetings - What happens at a meeting?"
  7. | Seeking Alpha, "Weight Watchers International: Time for the Company to Go on a Debt Diet?" January 11, 2009
  8. WTW 2009 10-K "Global Operations" pg. 31
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki