WW chief points to 'keto' diet as stock drops

WW CEO Mindy Grossman called the keto diet a "meme" in response to shares of WW plummeting more than 30 percent after the company revealed lower than projected earnings.
3:08 | 02/28/19

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Transcript for WW chief points to 'keto' diet as stock drops
story. Weight watchers in trouble. The company's stock dropping. Its CEO believes the popular keto diet may be one of the reasons why. Kayna Whitworth in L.A. With that story for us. Good morning, kayna. Reporter: Hey, robin, good morning, seems it's like how people identify themselves now. Right, saying I'm keto and that food tribe mentality has more and more people swearing off carbs and leaving behind Oprah's weight watchers. I love bread. Reporter: This morning, weight watchers losing big but not in inches. Shares of the popular diet program plummeting more than 30%. One of the Biggers losers, weight watchers spokesperson herself Oprah who owns almost 10% of the company. Since I started weight watchers I've lost over 40 pounds. Reporter: So what's behind the plunge? The CEO herself pointing the finger at current diet crazes like the keto diet which emphasizes low carbs and high fats. Right now we have a keto surge. It's a meme. It's not like a company. People have keto doughnuts adding we have been through this before and we know we are the program that works. I think many of these diet trends like keto, Paleo, what they're doing for people is offering that promise and it's a trend and it's something that they can follow specifically and I think that's exactly what people are looking for. They're looking for a specific plan to follow with that promise. And I think there's always going to be a trend. If it's -- today it's going to be a keto. Tomorrow it's going to be something else. Reporter: Though there has been a decline, U.S. News & world report still ranks weight watchers number one as the best commercial diet plan and best weight loss diet. While the keto diet is among the lowest ranked diets overall, the publication calling it fundamentally at odds with everything we know AUT long-term health. As for weight watchers, the CEO says the company isn't going to back down from its core mission, we are not going to change our DNA. We lived through this for 57 years and we are not going to play a game. We never have. We are going to be science-informed and we are sustainable for the long term. I believe weight watchers is going to bounce back from this decline because people really love what weight watchers is about. They're about community. They're about sharing. They're -- they've been there forever. Reporter: So weight watchers uses a point system based on calorie, sugar, fats and protein and allows users to focus on portion control own eat whatever they want including bread as long as they stay within their point allotment and participants also attend these weekly meetings as part of their support system. You guys, I wasn't able to find any information on the pregnancy peanut butter and jelly diet which I seem to enjoy. Bless your heart. How are you doing? How is everything going? I feel so great. Robin. Thank you so much. And I'm all for the peanut butter and jelly diet. Thank you. There's nothing wrong with that. I need bread.

This transcript has been automatically generated and may not be 100% accurate.

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