Activist Client Engaged Capital Discloses 5.7% Medifast Stake
The Wall Street Journal, Bloomberg and other media outlets reported on Engaged Capital’s public disclosure of a 5.7% stake in Medifast Inc., the weight loss program provider. Engaged Capital stated its belief that Medifast is undervalued, trading at roughly 40% discount to its peers in the weight-loss sector such as Nutrisystem Inc. and Weight Watchers International Inc. Engaged Capital revealed it has had discussions with Medifast’s management regarding improving the profitability of Medifast’s operations, accelerating growth in its core business, and the adoption of a disciplined approach to capital allocation with a focus on return on invested capital. Engaged Capital said it may make proposals in the future concerning the company's capitalization, ownership structure, board structure or operations. Steve Wolosky and Ryan Nebel represent Engaged Capital in connection with its investment in Medifast.