The weight-management industry generates $59 billion in revenue annually in the U.S. alone. You might say that the potential loss of pounds by customers of Weight Watchers International (WTW), NutriSystem (NTRI) and Nestle (NSRGY) (which owns Jenny Craig and Lean Cuisine) could translate into healthy gains for investors.
Weight Watchers has focused on group support, sustainable food plans and behavior modification for 50 years. In 2012, consumers spent $5 billion on Weight Watchers’ branded products and services. As you would expect, an economic slowdown in 2009 saw net revenue fall 8.9%. However, from fiscal 2008-2012, revenues compounded at an annual growth rate of 4.4% and shareholder equity rose 30%. Weight Watchers will likely remain one of the go-to companies for people needing to shed pounds.