Key Issues
- Eroding Core: Revenue down ~13% annually as digital competitors replicate WW’s offerings at lower prices, undermining differentiation.
- Franchise Pressure: In-person workshops face declining participation and thin margins; fixed local infrastructure limits flexibility.
- Questionable Acquisitions: Franchise and Sequence purchases add cost and integration risk without addressing core demand erosion; 2022 net loss $251M.
- Overhyped GLP-1 Strategy: Sequence pivot faces affordability limits; drugs largely not covered by insurers.
- Financial Risk: $1.4B debt vs. $1.0B assets, high intangibles (~40%) heighten covenant and impairment risks; downside ~$3/share.

