Playing the Business of Fitness
Obesity is a growing problem in the U.S., Cramer said Wednesday, with two-thirds of Americans overweight and one-third obese. More people are becoming concerned with getting in shape, the business of fitness is a money-making trend that’s not going away anytime soon.
To play it, the "Mad Money" host looked at Life Time Fitness . Although based in Chanhassen, Minn., the fitness club operator has 90 locations in 20 states. It is an upscale club, where people spend an average of up to $1,500 a year. Life Time is currently trying to grow its business by limiting attrition. By slowing down its new unit growth to three new centers a year, Cramer said the company is ready to start ramping up again. The company has also been cleaning up it's balance sheet while its leverage now at the lowest point in five years.
As the economy continues to improve, Cramer thinks Life Time's business could take off. To take a closer look at what this company is all about, Cramer welcomed CEO Bahram Akradi onto "Mad Money." Watch the videoto see the full interview.
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