Weight Watchers is aiming to keep its Oprah Winfrey-fuelled momentum going into the next decade.
The company announced plans to top $2 billion in annual revenue by 2020, up more than 50% from its estimated sales last year.
Weight Watchers also is working to remove artificial ingredients from its products and will offer free memberships to teens this summer, part of a bid capitalise on growing demand for weight-loss services.
“Weight Watchers is more relevant and needed than ever,” Chief Executive Officer Mindy Grossman said at a company event on Wednesday, citing the rise of obesity across the globe.
The upbeat outlook helped send the stock rose as much as 10% to $69.65 on Wednesday, marking the biggest intraday gain in a month. Even before the jump, the stock was up 42% this year.
Winfrey, who joined Weight Watchers’ board in 2015 and became the face of the weight-loss programme, has helped lead a dramatic recovery in the company’s membership and share price. But the 54-year-old business still faces heavy competition from fitness apps and other emerging technology.
Nutrisystem Pressure
Longtime rival Nutrisystem also has mounted its own comeback, putting more pressure on Weight Watchers to stay ahead. Grossman, who took the helm last year after running HSN, is looking to put her stamp on Weight Watchers by setting ambitious new goals.
The New York-based company is expected to report annual sales growth for the first time since 2012 when it releases earnings later this month.
For years, the company struggled with declining membership and a heavy debt load. Winfrey, a media mogul and longtime talk-show host, helped turn things around when she acquired a 10% stake in 2015 and began endorsing the programme. The shares nearly quadrupled in value last year.
Weight Watchers also has made efforts to reach more men. At the start of this year, it added music producer DJ Khaled as a “social-media ambassador.”
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