Weight Watchers International [NYSE:WTW] are gaining some heavy kilos in the stock market.
Their shares have risen 17.35% this morning and are sitting on a market value cap of $4.773 billion dollars.
Since yesterday, their shares have drastically risen after maintaining a stagnant stock value all throughout most of last year. This recent surge has changed the overall dynamic of Weight Watchers shares.
Today marks their largest single day gain in six months. Their stocks have been sitting steadily since rising 42% this year.
Although they didn’t see a major increase last year, they were never struggling to earn a profit. However, they did have a low increase in membership rates.
How did their shares add more to the scales?
Since 2015, Weight Watchers have taken steps to increase their brand recognition.
Celebrity Oprah Winfrey joined their board around that time, as she became a part of their program. Weight Watchers had reached out to her in an attempt to gain celebrity endorsement.
Recently, she has become the new face of their weight loss program, taking the extra step in order to increase brand recognition. The company’s attempt to stay relevant has carried on into 2018.
An entire segment featured on the Weight Watchers website outlines her diet and journey progress in a step by step chart.
Joe Ciolli from Business Insider stated Oprah’s investment in Weight Watchers has earned her $300 million. And that as soon as she invested in Weight Watchers their membership draught came to an end, increasing their share price and shedding a positive light onto the brand.
The stock price has surged greatly since then, vastly increasing over time.
What is the next step for Weight Watchers?
For the future, Weight Watchers seeks to maintain a steady membership increase while continuing to focus on their marketing campaigns in order to stay relevant.
Craig Giammona from Bloomberg has stated that the brand will be introducing new dietary recommendations and elevating their portfolio of food products.
They plan to release meal kits titled ‘WW Fresh’ in coming months. These kits are focused on low artificial flavours in food.
Weight Watchers isn’t just settling with Oprah either. They’re also reaching out to male celebrities such a DJ Khaled to make him a social media ambassador.
Weight Watchers is set to expand their profile over the course of 2018. The brand is focused both on losing weight and emphasising healthy lifestyle choices, and this could open up new doors for the business as a whole.
Publisher, Money Morning
PS: Weight Watchers aren’t the only source of advice you should absorb. Matt Hibbard has put together an article titled ‘5 Things You Can Do To Boost Your Retirement Pot’. Which provides useful advice for those nearing retirement.