- Over a decade, Weight Watchers (WTW) has grown market share from 18% to 43% of the US weight loss service industry. This time period has included the largest recession in history.
- Over a decade, Weight Watchers' ROIC and CFROI have exceeded cost of capital. The large sustained ROIC returns suggest that Weight Watchers has a high probability of sustaining higher returns compared to their peers.
- Weight Watchers' franchise purchases have been accretive to the tune of 3-4x carrying value.
- Weight Watchers has and continues to own the lion's share of industry profits.
- Weight Watchers has a differentiated service, enjoys scale advantages and owns a significant trust worthy brand.
In a previous Alpha-Rich article, I described...