Wall Street has rediscovered its appetite for Weight Watchers shares after the company’s most famous customer and investor, Oprah Winfrey, revealed the results of her new diet.
Shares in Weight Watchers jumped by almost a fifth on Thursday following the news that the broadcasting titan had lost 18kg (40lb) by following the company’s latest guidance.
A new advertising campaign showed Winfrey urging viewers to “take the leap”, as she clinked wine glasses with friends over spaghetti and salad.
“Since I started Weight Watchers, I’ve lost over 40lb. I can honestly tell you I struggle no more,” declared Winfrey, who bought 10% of the company in October 2015. “I’ve eaten everything I love, tacos, pasta. I’ve never felt deprived.”
In a second advert, Winfrey insists people can lose weight without giving up the foods they love. “Weight Watchers is easier than any other programme I’ve ever been on,” she says.
Investors lapped up the message and sent Weight Watchers shares soaring by 18% to $12.35, their biggest move in 10 months.
The ads are due to air on US television and social media from 26 December, a time when potential customers will be looking to burn off their Christmas calories.
Weight Watchers has suffered in recent years as consumers have moved away from diet programmes, in favour of healthier eating, calorie-counting apps and activity trackers such as FitBit.
Shares hit a one-year low of below $10 in September after the chief executive, James Chambers, resigned. They soared to $26 after Winfrey bought her stake in the firm 14 months ago.
