Store Growth and Franchise Operations - As of December 31, 2023, the company had 2,575 stores, reflecting a compound annual growth rate (CAGR) of 6.5% since 2019[15] - The company reported 18.7 million members as of December 31, 2023, with a CAGR of 6.8% since 2019[15] - Franchisees have contractual obligations to open approximately 1,000 additional stores, including more than 500 over the next three years[19] - The company aims to grow its store base to over 5,000 stores in the U.S. alone, leveraging its brand awareness and low per capita penetration[19] - As of December 31, 2023, there were 2,319 franchised Planet Fitness stores operated by 103 franchisee groups, with approximately 98% of these stores owned by multi-unit operators[30][31] - The growth strategy is dependent on new store development by franchisees, which faces challenges such as financing availability and competition for store locations[122] - If franchisees are unable to open new stores as anticipated, the company may not achieve expected revenue growth[125] Financial Performance and Revenue Streams - The average unit volume (AUV) for corporate-owned stores was approximately $1.9 million, with a segment EBITDA margin of 38.2%[14] - Approximately 90% of both corporate-owned and franchise revenues in 2023 consisted of recurring revenue streams, including royalties and monthly dues[18] - The average royalty rate increased to 6.5% in 2023, up from 6.1% in 2019[20] - The company’s revenues are largely dependent on royalties from franchisees, which are based on a percentage of gross monthly membership dues and annual fees[131] - Negative economic conditions, such as recession and inflation, could materially harm franchisees' financial conditions, adversely affecting the company's royalty revenues[131] Marketing and Brand Strategy - The company spent $78.5 million on national marketing campaigns in 2023, with franchisees required to contribute 2% of their monthly membership dues to the National Advertising Fund[19] - The percentage of PF Black Card members increased from 61% in 2019 to 62% in 2023, with average monthly dues per member rising from $16.91 to $18.29[19] - Planet Fitness aims to compete based on membership value proposition, high-quality fitness experience, and superior customer service[53] - The company must effectively market its brand in new markets to ensure the success of new stores; lack of brand awareness could delay growth[124] Employee Engagement and Diversity Initiatives - The company has implemented a human capital management strategy focusing on Employee Engagement, Health and Safety, and Diversity, Equity, and Inclusion[57] - The company aims to increase female representation to at least 50% at headquarters across manager and above levels by 2025[68] - The company has committed to increasing BIPOC representation across its workforce at headquarters by 2025[68] - The company has implemented a comprehensive employee assistance program and offers a free Black Card membership to all team members[67] Cybersecurity and Data Privacy - Failure to maintain data confidentiality and integrity could materially harm the company's reputation and business operations[17] - The company faces risks from cyber security incidents, particularly due to geopolitical events, which could disrupt operations and harm brand reputation[111] - The company has implemented processes to mitigate cyber risks, but these measures do not guarantee protection against incidents[119] - Compliance with evolving privacy and security laws may result in increased costs and operational constraints[117] Financial Obligations and Debt Management - The company has a substantial amount of outstanding debt, which requires significant cash to service and could adversely affect its financial condition[98] - The company expects to pay approximately $608.9 million in tax benefits over the remaining term of the tax receivable agreements, with $517.5 million payable to TRA Holders[187] - The company may face significant challenges in generating sufficient cash flow to meet debt obligations, which could necessitate asset sales or refinancing[181] - Financial covenants may limit the company's ability to incur additional indebtedness, increasing risks associated with existing debt[182] Regulatory and Compliance Challenges - The company is subject to various federal, state, and international laws and regulations affecting its business operations[76] - Compliance with various laws and regulations is critical; failure could lead to franchise agreement rescission and reduced royalty revenue[151] - The company is subject to evolving data privacy laws, which may increase operational costs and compliance risks[155] - Regulatory scrutiny on indoor tanning services could harm the company's reputation and profitability[156] Operational Risks and Challenges - The company faces significant competition in the health and fitness industry, which could adversely affect its ability to attract and retain members[17] - Rising costs related to construction and maintenance of stores, driven by inflation and supply chain disruptions, may impact the attractiveness of the franchise model[98] - The company is experiencing growth pressures that may strain management, employees, and internal controls, potentially impacting business operations[126] - The inability to secure suitable sites for new franchise stores may negatively impact revenue growth and profits[169]

Planet Fitness, Inc. (PLNT) reported fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Also, both metrics increased on a year-over-year basis.Following the results, the company’s shares fell 5.3% during trading hours on Feb 22. Negative investor sentiments were witnessed as the company cited concerns about continued macroeconomic uncertainty and a slowing down of sales (owing to a transition towards more strength equipment over cardio). The company anticipates 202 ...

CARMEL, Ind.--(BUSINESS WIRE)--Mayfair Capital Partners (“Mayfair”), a division of Oxford Financial Group, Ltd.™ (“Oxford”), on behalf of its underlying investors, has acquired Baseline Fitness LLC, (“Baseline” or the “Company”). The investment closed on February 2, 2024, and terms were not disclosed. Fredrikson & Byron served as legal counsel for Mayfair. Founded in 2009 and headquartered in Fargo, North Dakota, Baseline Fitness is a leading franchisee in the Planet Fitness system with 100 locations und ...

Planet Fitness, Inc. (NYSE:PLNT) Q4 2023 Earnings Conference Call February 22, 2024 8:00 AM ET Company Participants Stacey Caravella – Vice President-Investor Relations Craig Benson – Interim Chief Executive Officer Tom Fitzgerald – Chief Financial Officer Conference Call Participants Simeon Siegel – BMO Capital Markets Megan Alexander – Morgan Stanley John Heinbockel – Guggenheim Jonathan Komp – Baird Max Rakhlenko – TD Cowen Rahul Krotthapalli – JPMorgan Joe Altobello – Raymond James Sharon Zackfia – Will ...

Planet Fitness (PLNT) reported $285.09 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 1.4%. EPS of $0.60 for the same period compares to $0.53 a year ago.The reported revenue represents a surprise of +0.98% over the Zacks Consensus Estimate of $282.31 million. With the consensus EPS estimate being $0.58, the EPS surprise was +3.45%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to de ...

Planet Fitness (PLNT) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.45%. A quarter ago, it was expected that this fitness center operator would post earnings of $0.55 per share when it actually produced earnings of $0.59, delivering a surprise of 7.27%.Over the last four quarters, ...

Shares of Planet Fitness Inc. seesawed around the flatline Thursday, after the fitness-center operator beat fourth-quarter earnings expectations but provided a downbeat growth outlook for this year.The company also said Chief Financial Officer Tom Fitzgerald plans to retire in August after about four years with the company. That means the company is now looking for two top executives, as Craig Benson remains interim chief executive until a permanent CEO is found.The stock PLNT, +0.56% edged up 0.2% ahead of ...

HAMPTON, N.H., Feb. 22, 2024 /PRNewswire/ -- Planet Fitness, Inc. (NYSE: PLNT) (the "Company"), today announced that Tom Fitzgerald, Chief Financial Officer, has informed the Company of his intention to retire at the end of August 2024. In connection with this transition, the Company will conduct a comprehensive search to identify a new CFO with the assistance of a leading executive search firm. "On behalf of the Board and everyone at Planet Fitness, I would like to thank Tom for his valued partnership and ...

Planet Fitness, Inc. (PLNT) is scheduled to report fourth-quarter 2023 results on Feb 22, before the opening bell. In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 7.3% and 3.7%, respectively. Also, both metrics increased on a year-over-year basis.It posted better-than-expected earnings in three of the trailing four quarters and missed on the other one occasion, the average surprise being 7.4%.Q4 EstimatesFor the quarter to be reported, the Zacks Consens ...

Exhibit 99.1 Planet Fitness, Inc. Announces Fourth Quarter and Year-End 2023 Results Full Year system-wide same store sales increase of 8.7% Membership Growth of 1.7 million since the end of 2022 Opened 165 new Planet Fitness stores in 2023 Hampton, NH, February 22, 2024 - Today, Planet Fitness, Inc. (NYSE:PLNT) reported financial results for its fourth quarter and year ended December 31, 2023. "In 2023, we proactively developed the New Growth Model to fuel long-term sustainable store growth and in recognit ...