In the last year, the S&P 500 has climbed 17%. That's a better-than-average gain, historically. But some businesses have fared much better, and investors should take notice of them. In particular, one consumer-facing company has well outperformed the broader index: Its shares have soared by 42% just in the past 12 months (as of Feb. 25). Should you buy this growth stock with $1,000 right now, which would give you about 11 shares at the current price?On solid footingThe growth stock in question is Planet Fit ...

Core Viewpoint - Planet Fitness, Inc. reported strong fourth-quarter 2024 results, with adjusted earnings and revenues exceeding expectations, but faced negative investor sentiment due to a cautious 2025 outlook [1][2]. Financial Performance - Adjusted earnings per share (EPS) for the fourth quarter were 70 cents, surpassing the Zacks Consensus Estimate of 62 cents by 12.9%, and up from 60 cents in the prior-year quarter [3]. - Quarterly revenues reached $340.5 million, exceeding the consensus mark of $327 million by 4.2%, and improved 19.4% year over year, driven by a 5.5% increase in same-club sales [3]. - Adjusted EBITDA for the quarter was $130.8 million, an increase from $114.3 million reported in the year-ago quarter [4]. Segment Performance - Franchise segment revenues rose 11% year over year to $109 million, driven by increased royalty revenues and new club openings [5]. - Corporate-owned clubs generated revenues of $126.3 million, up 8.5% year over year, attributed to new clubs opened and acquired [6]. - Equipment segment revenues totaled $105.1 million, a significant increase of 49.2% year over year, due to higher sales to franchisee-owned clubs [7]. 2024 Highlights - Total revenues for 2024 were $1.18 billion, compared to $1.07 billion in 2023 [10]. - Adjusted EBITDA for 2024 was $487.7 million, up from $435.4 million in 2023 [10]. - Adjusted net income per share (diluted) for 2024 was $2.59, compared to $2.24 in the previous year [10]. 2025 Outlook - For 2025, the company expects revenue growth of approximately 10% over 2024 levels, with same-club sales growth projected in the 5-6% range [11]. - Adjusted EBITDA for 2025 is estimated to grow by approximately 10%, while adjusted net income is expected to increase in the 8-9% range [12]. - Capital expenditures are projected to rise by 25% in 2025, driven by investments in new corporate-owned clubs [13].

Group 1 - The article discusses the performance of Planet Fitness, Inc. (NYSE: PLNT), highlighting a previous short-term gain of approximately 30% from trading the stock [1] - The company is positioned as a house position, indicating a strong belief in its potential for future returns [1] - The article promotes a blended trading and income approach to enhance savings and retirement timelines for investors [1] Group 2 - The content encourages potential investors to try the service with a money-back guarantee, emphasizing a proven track record of high conviction ideas [2]

Membership and Club Operations - As of December 31, 2024, Planet Fitness had approximately 19.7 million members, with 82% of membership fee payments collected via ACH direct debit[22]. - The company operated 2,722 clubs system-wide as of December 31, 2024, including 2,445 franchised and 277 corporate-owned locations[23]. - PF Black Card membership penetration increased from 61% as of December 31, 2020, to 64% as of December 31, 2024, with average monthly dues per member rising from $17.01 to $19.01[1]. - Monthly membership dues start at $15 for the standard Classic Card and $24.99 for the PF Black Card, with current standard annual fees at $49[24]. - As of December 31, 2024, the company had 96 franchisee groups operating 2,445 clubs, indicating a substantial franchise network[115]. Marketing and Brand Strategy - Planet Fitness spent $88.6 million in 2024 on national marketing campaigns and local advertising, with franchisees required to contribute 2% of their gross monthly membership dues to the National Advertising Fund[1]. - The company plans to enhance its free fitness training program and provide over 500 workouts via its mobile application to attract new members[1]. - Planet Fitness aims to increase brand investment to drive awareness and growth, leveraging significant marketing expenditures from both franchisees and corporate[1]. - Franchisees in the U.S. and Canada are required to spend 7% of their monthly dues on local marketing to support branding efforts[47]. - The company has aligned with high-profile media partners, reaching over one billion TV viewers annually through sponsorships[48]. Financial Performance and Royalties - The average royalty rate for Planet Fitness was 6.6% in 2024, up from 6.3% in 2020, with only 57% of clubs paying royalties at the current franchise agreement rate[1]. - The company's financial results are heavily reliant on royalties from franchisees, which are based on a percentage of gross monthly membership dues and annual fees[115]. - Economic conditions such as recession, inflation, and decreased consumer confidence could materially harm franchisees' financial conditions, adversely affecting the company's revenues[115]. Challenges and Risks - The health club industry is highly competitive, with various fitness and non-fitness alternatives vying for consumer discretionary spending[51]. - The company and its franchisees face challenges in attracting and retaining members, which could adversely impact business operations and financial condition[91]. - The company is exposed to risks related to cybersecurity, which could disrupt operations and damage reputation if data integrity is compromised[15]. - The company must effectively respond to changing consumer preferences in health and fitness to avoid adverse impacts on business[89]. - The company faces increased risks of cybersecurity incidents due to geopolitical events, which could disrupt operations and affect member services[97]. Debt and Financial Obligations - As of December 31, 2024, the Master Issuer had approximately $2.2 billion of outstanding debt[173]. - The Master Issuer issued $575 million in Series 2018-1 Fixed Rate Senior Secured Notes and $625 million in Series 2018-1 Fixed Rate Senior Secured Notes on August 1, 2018[165]. - The company expects substantial payments under tax receivable agreements, which may affect future cash flow and operational decisions[180]. - The financial covenants may limit the ability to incur additional indebtedness in the future, intensifying existing risks[177]. - The company has significant outstanding debt, which could affect financial condition and operational results[84]. Employee and Operational Management - The company employed 3,806 employees at corporate-owned clubs and 367 employees across Corporate Support Centers as of December 31, 2024[55]. - The company emphasizes a competitive pay and benefits structure to support team members' financial, physical, and mental well-being[62]. - Competition for qualified employees is intense, and the inability to attract and retain key personnel could hinder the company's strategic objectives[112]. - The company must effectively manage growth to avoid strains on management, employees, and internal controls, which could adversely impact business operations[110]. Regulatory and Compliance Issues - Compliance with numerous laws and regulations is required, and failure to do so may result in fines, damages, and reduced royalty revenue[136]. - The company is subject to extensive regulations regarding indoor tanning services, which could harm reputation and profitability due to negative public perception[143]. - Changes in data privacy laws could impose additional costs and operational constraints, adversely affecting business models and revenue[141]. - The handling of personally identifiable information is regulated at multiple levels, and noncompliance could lead to material adverse effects on business and financial condition[103]. Strategic Growth and Expansion - The company is expanding internationally, which presents risks including inadequate brand infrastructure and political instability in foreign markets[113]. - The growth strategy is dependent on franchisees' ability to access funds for new club development, which could be adversely affected if financing is not available[107]. - The company must effectively market and promote its brand in new markets to ensure the success of new clubs, or growth may be significantly delayed[108]. - Failure to open new clubs as anticipated could hinder revenue growth and adversely affect operating income[109]. Technology and Innovation - The company utilizes a computerized club management system to track and analyze sales, membership statistics, and demographic profiles[66]. - Since 2019, the company has developed a new customized mobile application and rolled out a new in-club media solution to enhance digital experiences[96]. - The adoption of artificial intelligence technologies may require substantial resources and could impact financial performance if not managed properly[163]. Financial Volatility and Market Risks - The stock price of Class A common stock has fluctuated between $13.23 and $102.01 since the IPO, indicating potential volatility[205]. - The company’s financial forecasting may differ materially from actual results, potentially causing a decline in stock price[212]. - The company faces potential litigation costs and management distraction due to securities class action litigation following stock price volatility[209]. - Inflationary conditions may lead to increased shipping, labor, and equipment costs, impacting profitability, particularly due to minimum wage increases affecting labor costs[337].

Core Insights - Planet Fitness shares declined due to 2025 projections overshadowing a strong fourth quarter performance [1][4] - The company reported an adjusted earnings per share (EPS) of $0.70 for Q4 2024, with revenue of $340.45 million, both showing year-over-year growth and exceeding analyst expectations [1][4] Financial Performance - For Q4 2024, Planet Fitness achieved a same club sales growth of 5.5%, surpassing the anticipated 4.84% [1] - The company forecasts approximately 10% revenue growth for 2025, projecting revenue to reach about $1.3 billion, slightly above analyst consensus [2] - Adjusted EPS is expected to grow by 11% to 12%, while same club sales are projected to increase by 5% to 6% in 2025, both slightly below current analyst projections [2] Market Reaction - Following the unexpected departure of its CEO in September 2023, Planet Fitness shares have rebounded, hitting a record high in late January 2024 [3] - Despite the recent decline of over 8% in share price, it remains more than 40% higher than a year ago [3]

Planet Fitness Inc. (NYSE:PLNT) Q4 2024 Earnings Conference Call February 25, 2025 8:00 AM ET Company Participants Colleen Keating - Chief Executive Officer Jay Stasz - Chief Financial Officer Stacey Caravella - Vice President, Investor Relations Conference Call Participants Simeon Siegel - BMO Capital Markets Randal Konik - Jefferies Sharon Zackfia - William Blair Joe Altobello - Raymond James Rahul Krotthapalli - JP Morgan John Heinbockel - Guggenheim Partners Max Rakhlenko - TD Cowen Jonathan Komp - Bair ...

Core Insights - Planet Fitness reported revenue of $340.45 million for the quarter ended December 2024, marking a year-over-year increase of 19.4% and exceeding the Zacks Consensus Estimate by 4.24% [1] - The earnings per share (EPS) for the same period was $0.70, up from $0.60 a year ago, representing a surprise of 12.90% over the consensus estimate of $0.62 [1] Financial Performance Metrics - Total stores at the end of the period reached 2,722, slightly above the average estimate of 2,720 [4] - Same-store sales increased by 5.5%, surpassing the estimated 4.8% [4] - Corporate-owned same-store sales were reported at 4.4%, below the estimated 4.8% [4] - New stores opened totaled 86, exceeding the estimate of 81 [4] - Franchisee-owned same-store sales grew by 5.7%, above the average estimate of 4.7% [4] Revenue Breakdown - Revenue from the national advertising fund was $19.49 million, slightly below the estimate of $19.58 million, but reflecting a year-over-year increase of 10.5% [4] - Franchise revenue was reported at $89.54 million, below the estimate of $90.60 million, with an 11.1% year-over-year increase [4] - Equipment segment revenue reached $105.12 million, significantly above the average estimate of $86.99 million, representing a 49.2% year-over-year increase [4] - Corporate-owned stores segment revenue was $126.31 million, below the estimate of $130.83 million, with an 8.5% year-over-year increase [4] - Franchise segment revenue was $109.02 million, slightly below the estimate of $109.70 million, with an 11% year-over-year increase [4] Stock Performance - Planet Fitness shares have returned -4.1% over the past month, compared to the Zacks S&P 500 composite's -1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Planet Fitness reported quarterly earnings of $0.70 per share, exceeding the Zacks Consensus Estimate of $0.62 per share, and showing an increase from $0.60 per share a year ago, resulting in an earnings surprise of 12.90% [1] - The company generated revenues of $340.45 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.24% and up from $285.09 million year-over-year [2] - Planet Fitness has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $288.35 million, while for the current fiscal year, the estimate is $2.94 on revenues of $1.29 billion [7] - The estimate revisions trend for Planet Fitness is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Leisure and Recreation Services industry, to which Planet Fitness belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Total revenue for the fiscal year increased by 10.3% to $1.2 billion from $1.1 billion[5] - Adjusted net income for the fiscal year rose by 12.4% to $223.8 million, or $2.59 per diluted share[11] - Net income attributable to Planet Fitness, Inc. for the year ended December 31, 2024, was $172.042 million, up 24.3% from $138.313 million in 2023[23] - Net income for the year ended December 31, 2024, increased to $174,243,000, up from $147,035,000 in 2023, representing an increase of 18.5%[27] - Adjusted EBITDA for the year ended December 31, 2024, was $487,710,000, compared to $435,376,000 in 2023, reflecting a growth of 12.0%[34] - Adjusted net income for the year 2024 was $223,754,000, up 12.5% from $199,009,000 in 2023[40] - Adjusted net income per share, diluted, increased to $2.59 in 2024 from $2.24 in 2023, representing a 15.6% growth[40] Membership and Club Growth - Net membership growth reached 1 million since the end of 2023, totaling 19.7 million members[4] - Membership count reached approximately 19.7 million as of December 31, 2024, with 2,722 clubs operating across various regions[20] - 150 new Planet Fitness clubs were opened in 2024, bringing the total to 2,722[5] - The company plans to open approximately 160 to 170 new locations in 2025[14] - System-wide same club sales growth is projected to be in the range of 5% to 6% for 2025[14] Sales Performance - Full-year system-wide same club sales increased by 5.0%[1] - Same club sales increased year-over-year, reflecting strong performance in both corporate-owned and franchisee-owned clubs[18] Cash Flow and Assets - Cash and cash equivalents increased to $293.150 million as of December 31, 2024, compared to $275.842 million in 2023[25] - Total assets grew to $3,069.708 million as of December 31, 2024, from $2,969.693 million in 2023[25] - Cash flows from operating activities for 2024 were $343,873,000, an increase from $330,254,000 in 2023, indicating a rise of 4.3%[27] - Cash, cash equivalents, and restricted cash at the end of the period increased to $349,674,000 from $322,121,000, a rise of 8.6%[27] Debt and Expenditures - Long-term debt increased to $2,148.029 million as of December 31, 2024, compared to $1,962.874 million in 2023[25] - The company issued $800,000,000 in long-term debt during 2024, compared to no issuance in 2023[27] - Capital expenditures are expected to increase by approximately 25% in 2025[12] Future Outlook - For 2025, the company expects revenue to increase by approximately 10% and adjusted EBITDA to also increase by approximately 10%[12] - The company plans to hold an investor conference call on February 25, 2025, to discuss future performance and strategies[19] - Forward-looking statements indicate expectations for continued membership and club growth, alongside potential risks in the fitness industry[21] Segment Performance - The franchise segment's Adjusted EBITDA for 2024 was $301,122,000, up from $273,008,000 in 2023, marking an increase of 10.3%[34] - The corporate-owned clubs segment reported Adjusted EBITDA of $188,751,000 for 2024, compared to $173,322,000 in 2023, a growth of 8.9%[34] - The equipment segment's Adjusted EBITDA surged to $71,778,000 in 2024, up from $56,362,000 in 2023, representing a significant increase of 27.4%[34] Stock and Shareholder Actions - The company repurchased and retired $300,205,000 of Class A common stock in 2024, compared to $125,030,000 in 2023, an increase of 140.0%[27] Tax and Other Financial Metrics - The company reported a provision for income taxes of $68,443,000 for the year 2024, up from $58,512,000 in 2023, indicating a 16.0% rise[38] - The company reported adjusted income taxes of $78,163,000 for the year 2024, compared to $69,559,000 in 2023, marking a 12.0% increase[40] - The company incurred $10,918,000 in purchase accounting amortization for Q4 2024, down from $12,955,000 in Q4 2023[38] - The loss on adjustment of allowance for credit losses on held-to-maturity investment was $297,000 in Q4 2024, significantly lower than $2,738,000 in Q4 2023[38]

Core Insights - Planet Fitness reported a strong performance in 2024, achieving a net membership growth of 1 million, totaling 19.7 million members by year-end [4][18] - The company opened 150 new clubs in 2024, contributing to a total of 2,722 clubs as of December 31, 2024 [4][8] - Revenue growth exceeded 10%, with total revenue reaching $1.2 billion, a 10.3% increase from the previous year [8][10] Fourth Quarter Highlights - Total revenue for Q4 2024 increased by $55.4 million, or 19.4%, to $340.5 million compared to $285.1 million in Q4 2023 [5][8] - System-wide same club sales grew by 5.5% in Q4 2024 [5][8] - Net income attributable to Planet Fitness, Inc. was $47.1 million, or $0.56 per diluted share, compared to $35.3 million, or $0.41 per diluted share, in the prior year [8][21] Fiscal Year Highlights - For the fiscal year 2024, net income attributable to Planet Fitness, Inc. was $172.0 million, or $2.00 per diluted share, up from $138.3 million, or $1.62 per diluted share, in 2023 [10][21] - Adjusted net income increased by 12.4% to $223.8 million, or $2.59 per diluted share, compared to $199.0 million, or $2.24 per diluted share, in the prior year [10][21] - Adjusted EBITDA rose by $52.3 million to $487.7 million from $435.4 million in the previous year [10][21] Segment Performance - Franchise segment revenue increased by $10.8 million, or 11.0%, to $109.0 million in Q4 2024 [9][20] - Corporate-owned clubs segment revenue grew by $9.9 million, or 8.5%, to $126.3 million in Q4 2024 [9][20] - Equipment segment revenue surged by $34.7 million, or 49.2%, to $105.1 million in Q4 2024, driven by higher sales to existing franchisee-owned clubs [9][20] 2025 Outlook - The company anticipates continued growth in 2025, expecting revenue to increase by approximately 10% and adjusted EBITDA to rise by about 10% [11][14] - Projected same club sales growth is expected to be in the range of 5% to 6% [14] - The company plans to open approximately 160 to 170 new clubs in 2025 [14]