Weight Watchers International, Inc. shares were down 29.73% on Friday with about 13.8 million shares traded. Shares plummeted after the company reported third quarter results. For the quarter revenue saw a growth of 13% year over year to $365.8 million and adjusted net income climbed over 50% to $0.94 per share. Analysts were expecting revenue of $365.8 million but $0.99 in adjusted earnings. Subscriber growth jumped almost 25% year over year to 4.2 million, including 2.7 million digital subscribers and 1.4 million meeting subscribers. This was however down from around 4.5 million subscribers three months ago. CEO Mindy Grossman said on the earnings call, "As we expand our mission from being the global leader in weight management to becoming the world's partner in wellness, we marked a major milestone with our rebranding as WW. We are also enhancing our digital experience in ways that are meaningful to our members' lives, including through the launch of WellnessWins , our first loyalty and rewards program. We have accomplished a great deal in 2018; however, I believe the true impact of our bold moves will be realized in 2019 and beyond."
McDonald's Corporation shares closed up a little over 1% on Friday with almost 4.2 million shares traded. The fast food giant is offering a $6 Classic Meal Deal for a limited time which started last Thursday. As part of the deal, patrons receive their choice of a McDonald's Quarter Pounder with cheese, Big Mac, 10-piece McNugget or Filet-O-Fish, a small order of French fries, a soft drink or sweet tea in any size, and a pie for dessert. It was also last week that the company announced the launch of its Where You Want To Be campaign. The campaign was launched to help "restaurant employees connect the skills they learn on the job with the education, tuition assistance and career tools available to take the next step in their professional journey – whether at McDonald’s or elsewhere." Paul LeBlanc, President of Southern New Hampshire University, an Archways to Opportunity partner remarked, "Our current workforce needs more innovative and flexible options for learning. In order to deliver on that need, employers and universities must be better aligned and more responsive to the needs of adult and working learners. I have huge admiration for the work McDonald’s is doing to develop the workforce, foster greater educational attainment and unlock opportunities for restaurant employees."
Our Actionable Research on Weight Watchers International, Inc. (NASDAQ: WTW) and McDonald's Corporation (NYSE: MCD) can be downloaded free of charge at Research Driven Investing.
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