Making Big Bucks on Heavy Weights

ByABC News
August 18, 2003, 1:41 PM

Aug. 19 -- Two out of three American adults are overweight. One in three Americans is obese. The adults of tomorrow aren't looking any better 15 percent of American children are obese. It's disheartening to be sure, but there is a way to benefit: Invest in companies that use such statistics in their earnings projections.

Diet and exercise are the most obvious ways to slim down.

Weight Watchers International, which offers its weight-loss services to people in 30 countries, just signed an agreement with Applebee's International, which will add a Weight Watchers section to its menus.

Nutri/System offers prefab diet food, support and a plan, but its revenue has been declining. Another option is eDiets.com, which allows folks to anonymously manage their weight online.

Buying stock in working out is tough to do.

Gold's Gym and 24 Hour Fitness are both privately held. Bally Total Fitness, with 400-plus gyms across the United States, can be bought for less than $10 per share, but analysts aren't expecting more than single-digit revenue growth next year.

There is another option: Buy up shares of companies that support overindulgent lifestyles.

Nestlé, the Swiss sweets giant, is spending $2.8 billion to gobble up Dreyer's Grand Ice Cream. McDonald's , the blue chip of fast food, is also finally growing again.

Those who can't be bothered with diet and exercise can pop pills to counteract the effects of their unhealthy habits.

The world's biggest drugmaker, Pfizer, sells Lipitor, a drug that helps to lower cholesterol. Amylin Pharmaceuticals is in phase III trials of Exenatide, a drug that promises to treat type 2 diabetes.

If you can't decide whether Americans will feast or famish, consider the Anglo-Dutch food conglomerate Unilever; it owns Ben & Jerry's ice cream and Slim-Fast diet drinks.

For more, go to Forbes.com..