Blue Apron Holdings Inc. (NYSE: APRN) shares popped this week following news of a new deal with Weight Watchers International Inc. (NASDAQ: WTW) that some believe could save this struggling meal kit delivery service.
While Blue Apron is down about 77% in the past 52 weeks, it has made some solid progress this week. Since last Friday’s close, shares are up about 53%.
The company originally came public in June 2017, when it went out around $10 per share. However, shares have been on a steady decline since then.
This new partnership could give Blue Apron some hope. Ultimately the deal with Weight Watchers will feature a weekly rotating selection of recipes inspired by the WW Freestyle program and available for home delivery. The Blue Apron culinary team designed the recipes, which emphasize diverse cuisines, high-quality ingredients and unique flavors, in close collaboration with Weight Watchers nutrition and wellness experts. The meals became available for all to order exclusively through Blue Apron’s digital platform beginning December 26.
Stacey Mowbray, President of North America at Weight Watchers, commented:
This partnership is all about bringing delicious, inspiring meals directly to your home. The recipes – based on WW Freestyle, our most effective and livable program to date – make cooking at home simpler, convenient and enjoyable.
Brad Dickerson, CEO of Blue Apron, added:
The passion, engagement, and enthusiasm of WW members closely mirrors the attributes of our community of home cooks. Our new WW Freestyle menu is designed to bring discovery and achievement to the home cooking experience, introducing consumers––including WW members and Blue Apron customers––to ingredients, techniques, and delicious meals that empower them to develop a wellness-inspired home cooking routine.
Shares of Blue Apron were last seen up about 10% at $1.01, in a 52-week range of $0.65 to $4.30. The stock has a consensus analyst price target of $1.59.
Weight Watchers was down 4% at $41.75 a share. The 52-week range is $38.16 to $105.73, and the consensus price target is $90.92.