Medifast’s Board of Directors has elected to
discontinue the company’s quarterly cash dividend, effective
immediately. The Board of Directors believes that discontinuing the
dividend at this time is in the best interest of the company and its
stockholders, as it allows the company to redirect capital to invest in
technology and growth initiatives. This is intended to improve customer
acquisition and customer experience, which the company expects will
generate higher long-term stockholder returns, as well as allow for
stock repurchases when management and the Board deem it appropriate. The
investments include a new marketing campaign designed to increase brand
awareness and drive customer adoption.
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