Traders hitting the gym this week may have noticed that it’s quite crowded. But that shouldn't come as a surprise—losing weight and staying fit are consistently at the top of New Year’s resolution lists. But fitness centers aren’t the only places catering to people planning for a healthier 2016.
“It is the busiest time of the year. The phones are ringing,” said Dawn Zier, CEO of Nutrisystem (NTRI). The weight loss company celebrated a stellar 2015. Revenue increased 13%, and profits nearly tripled. The company is also expanding with the acquisition of the South Beach Diet brand. “The stock is up 10% year-over-year for 2015, against a market that's been relatively flat or down,” noted Zier.
The head of Nutrisystem even welcomed its rival’s big get. Weight Watchers’ stock (WTW) has more than tripled since it partnered with Oprah Winfrey, who took a 10% stake in the company. “I was excited actually for the entire industry because Oprah's such a name out there and such an influencer. It's really great that she can bring attention to the American [obesity] epidemic that we have going on,” said Zier.
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Obesity is a serious problem in the United States, where more than one-third of adults are considered obese. But it’s also a big business opportunity, which the chief executive plans to seize. “We still see a lot of organic growth. We believe we're going to be able to grow through our retail … [With] home delivery products and then with our new acquisition of the South Beach Diet, we think we'll get additive growth as well,” said Zier.
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