Keto Craze: Weight Watchers Stock Takes A Hit

The popularity of the keto diet has had a negative impact on Weight Watchers, now known as WW. In 2019, WW's stock plummeted by more than 30% after the company reported lower-than-expected earnings. CEO Mindy Grossman attributed this poor performance to the rise of the keto diet, calling it a meme and a surge. The keto diet is a trendy, low-carb diet with a celebrity following that has been described as Atkins on steroids. In contrast, WW is a long-standing, balanced diet program that uses a points system to help users make healthy food choices and lose weight. While keto may offer quick weight loss results, it is very restrictive and can be hard to follow long-term. WW, on the other hand, provides a more gradual and sustainable approach to weight loss and is backed by scientific research and expert recommendations.

The keto diet's impact on Weight Watchers' stock price

The popularity of the keto diet has negatively impacted Weight Watchers' stock price. In February 2019, Weight Watchers' (now known as WW) stock plunged more than 30% after the company reported lower-than-expected earnings. CEO Mindy Grossman attributed this poor performance to the rise of the keto diet, calling it a "keto surge".

The keto diet is a low-carb, high-fat diet that has gained a cult-like following, including among celebrities. In contrast, WW is a commercial diet focused on weight loss and healthy eating and lifestyle habits. It uses a points system, based on an individual's sex, weight, height, and age, to assign point values to foods based on their nutritional content. While WW does not forbid any foods, it encourages an eating pattern higher in healthy fats, lean proteins, and fibre, and lower in calories, saturated fat, and added sugar.

The appeal of the keto diet as a quick fix for weight loss has likely drawn customers away from WW. However, the keto diet is challenging to stick to in the long term due to its restrictive nature. In comparison, WW offers ongoing support and a more flexible approach to weight loss.

While WW has faced competition from the keto diet, it remains the number one doctor-recommended weight-loss program. It has also brought in celebrities like Oprah Winfrey, DJ Khaled, and Kate Hudson to raise its profile. Despite the impact of the keto diet, WW maintains that it will not change its strategy and is committed to being a science-informed and sustainable program.

The science behind keto and Weight Watchers

Keto

The ketogenic (keto) diet is a high-fat, low-carbohydrate diet that has been used in medicine for almost 100 years to treat drug-resistant epilepsy. In the 1970s, Dr Atkins popularised a very low-carbohydrate diet for weight loss that began with a strict two-week ketogenic phase.

The keto diet is based on the principle that by depleting the body of carbohydrates, its primary source of energy, you can force the body to burn fat for fuel, maximising weight loss. On a keto diet, the goal is to restrict carbohydrate intake so that the body must break down fat for energy. This process is called ketosis.

Generally, if you plan to follow a ketogenic diet, you should aim to consume less than 10% of your total calories from carbohydrates per day, with the remaining calories coming from 20-30% protein and 60-80% fat.

Weight Watchers

Weight Watchers is a commercial weight-loss diet that has been consistently and independently proven effective over the past four and a half decades. It is backed by expert recommendations and proven by science. Over 145 studies on Weight Watchers have been published, and it has been proven effective in general and clinical populations, over the long term, and across the globe.

The Weight Watchers program is based on overall diet quality, not particular foods, and no food or drink is off-limits. Members are encouraged to choose foods higher in fibre, protein, and unsaturated fats and lower in added sugar and saturated fat. The program simplifies nutritional information by boiling it down to a single number – a Points value – that members can track.

The popularity of keto

The ketogenic diet, or keto, is a trendy diet with celebrity followers and a cult-like appeal. It is a very low-carb, high-fat diet that has been around for nearly a century, originally developed to treat epilepsy.

The appeal of keto lies in the perception that it is a quick fix for weight loss. The diet allows for the consumption of foods that are usually restricted, such as burgers, bacon, butter, and cheese, while still achieving weight loss. This combination of eating "forbidden" foods and seeing quick results on the scale can be very enticing to those looking for a simple solution to their weight struggles.

Additionally, the keto diet is often promoted by celebrities and has a strong online presence, with many informal connections and communities forming around it. This social aspect adds to its popularity, as people can easily find support and follow the trend together.

However, despite its popularity, keto has been criticised for being extremely restrictive and difficult to follow long-term. It eliminates or severely limits entire food groups, such as grains, milk, yogurt, fruit, legumes, and starchy vegetables. This restriction can lead to nutrient deficiencies and an imbalanced diet, as well as potential side effects like "keto flu," which includes symptoms such as headaches, nausea, and fatigue.

In conclusion, the popularity of keto can be attributed to its promise of quick weight loss, the freedom to consume high-fat foods, and its trendy status, often propelled by celebrities and online communities. However, the challenge of sustaining such a restrictive diet over the long term and the potential health risks associated with it are important considerations for those considering this approach.

Criticisms of the keto diet

The keto diet has been criticised for various reasons, including its potential negative impact on health, the environment, and its sustainability as a long-term weight loss solution. Here are some of the common criticisms of the keto diet:

• Nutritional deficiencies and restrictive nature: The keto diet is often criticised for being highly restrictive and difficult to adhere to in the long term. It involves significantly reducing carbohydrate intake, which can lead to nutrient deficiencies. Critics argue that this restriction can result in a lack of essential vitamins, minerals, and fibre. The diet is predominantly fat, with very low carbohydrate intake, which goes against conventional nutritional advice.
• Potential health risks: Critics argue that the keto diet may have negative impacts on heart health, with some studies suggesting it can increase the risk of heart disease. It has also been associated with an increased risk of diabetes, strokes, and other cardiovascular issues. The diet has been criticised for potentially causing muscle loss and fatigue, and there are concerns about its safety for people with underlying kidney or liver issues.
• Weight loss concerns: Some experts argue that the initial weight loss associated with keto is mostly water weight and that long-term weight loss maintenance is challenging. They claim that extreme diets like keto can lead to weight cycling, which can impair glucose tolerance and increase the risk of chronic inflammation and cardiovascular disease.
• Lack of long-term evidence: Critics point out that there is a lack of comprehensive long-term studies on the keto diet. While it may be effective for short-term weight loss, the potential risks and benefits over a longer period are not yet fully understood.
• Not suitable for everyone: The keto diet may not be suitable for everyone, especially those with certain medical conditions. For example, it can be risky for people with type 2 diabetes if not properly managed, and it may not be optimal for athletes or individuals trying to gain muscle.
• Environmental impact: Some critics are concerned about the environmental sustainability of the keto diet, particularly the impact of meat consumption and the potential contribution to climate change.
• Social and practical challenges: The keto diet can be socially isolating due to its restrictive nature, making it challenging to eat out or share meals with others. It also requires discipline and vigilance, as every food choice must be carefully considered to maintain ketosis.

While the keto diet has its supporters, these criticisms highlight the need for further research and a cautious approach when considering this diet as a weight loss or health solution.

Weight Watchers' response to the keto diet

Weight Watchers, now known as WW, is a commercial diet program that has been around for decades. It is a balanced diet that focuses on weight loss, healthy eating, and lifestyle habits. The program uses a points-based system called SmartPoints to encourage healthier food choices.

In response to the rising popularity of the keto diet, WW has emphasized that their program takes a very inclusive approach to food. Michelle Cardel, director of global clinical research and nutrition for WW, states that "each member has their own zero-points food list to ensure that they reach their goals while eating food they truly love. And importantly, no foods are off-limits."

This sets WW apart from the keto diet, which is highly restrictive. The keto diet is a low-carb, high-fat, moderate-protein diet that restricts carbohydrates, including healthy foods like grains, fruits, vegetables, and legumes. In contrast, WW encourages a balanced approach to nutrition, allowing all types of food in moderation.

WW also provides a strong support network for its members, offering in-person workshops, online chat, and phone support. This can be especially beneficial for those who find it challenging to stick to a diet and need ongoing encouragement and accountability.

While the keto diet may lead to rapid weight loss in the short term, it is difficult to sustain and may not be safe for everyone. On the other hand, WW has a proven track record of success and is considered a sustainable, long-term lifestyle change.

Some people have found success by combining aspects of both diets. For example, a lower-carb version of the WW program can be created by focusing on the zero-point food options, which include fruits, vegetables, lean proteins, and whole grains. This approach allows individuals to experience the benefits of reduced carbohydrate intake while still enjoying the flexibility and support offered by WW.

Ultimately, the decision between WW and keto depends on individual needs and preferences. WW may be preferable for those who value flexibility, built-in structure, and ongoing support. In contrast, keto may be a better fit for those seeking rapid weight loss, willing to make drastic dietary changes, and comfortable with a more restrictive diet.

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