Core Viewpoint - Planet Fitness, Inc. (PLNT) has shown strong stock performance, gaining 14.4% over the past three months, significantly outperforming the Zacks Leisure and Recreation Services industry and broader market indices [1][2] Group 1: Financial Performance and Market Position - PLNT's stock is currently trading at $82.39, above its 50-day moving average of $77.50 and 200-day moving average of $69.42, indicating positive market perception [2] - The company has a forward 12-month price-to-earnings ratio of 30.24X, which is higher than the industry average of 16.22X, suggesting a premium valuation [9] - The Zacks Consensus Estimate for PLNT's 2024 earnings per share (EPS) has increased from $2.43 to $2.44 over the past 60 days, with a similar upward trend for 2025 EPS from $2.83 to $2.84 [10][11] Group 2: Business Model and Growth Strategies - Planet Fitness differentiates itself in the high-value, low-price (HVLP) sector by creating an inclusive member experience, supported by its "no gymtimidation" philosophy [3] - The company has implemented a $15 pricing structure for new classic card members, expected to contribute to a low to mid-single-digit increase in average unit volume (AUV) over the next year [4] - The asset-light franchise model generates substantial free cash flow, allowing for continued investment in growth initiatives and shareholder returns [6] Group 3: Expansion and Market Opportunities - Planet Fitness is expanding internationally, with its first European location opened in Barcelona, indicating potential for growth in high-density population areas [6] - The High School Summer Pass Program has attracted over 2.6 million teen participants, emphasizing the company's commitment to community and long-term membership growth [3] Group 4: Challenges and Risks - The company recently refinanced $600 million of debt, increasing its total debt to $800 million, which raised concerns about its ability to manage debt obligations amid economic downturns [7] - Equipment sales have seen a decline, with a year-over-year drop of 8.4% in the second quarter, which could impact overall performance if store openings do not meet expectations [8]

In an aerial view, customers leave a Planet Fitness gym on May 09, 2024 in Richmond, California. September started on a rough note for the U.S. stock market, with certain economic readings showing signs of weakness. Ignoring the near-term noise, investors looking for stock picks can consider the recommendations of top Wall Street analysts. These experts conduct research and assess the ability of a company to navigate headwinds and deliver growth over the long term. Bearing that in mind, here are three stock ...

It has been about a month since the last earnings report for Planet Fitness (PLNT) . Shares have added about 4.3% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Planet Fitness due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Planet Fitness Q2 Earnings & Revenues ...

Peloton sets the bar really low for another industry stock attracting investor attention. Peloton Interactive (PTON 0.65%) seems to get all the attention these days, at least when it comes to the exercise industry. It thrived before and during the pandemic. But in the past couple of years, the business has been fighting for its survival. Its most recent financial update was cheered by investors, as maybe things will start to trend in the right direction. If you're considering buying this consumer discretion ...

Core Viewpoint - Baird has designated Planet Fitness Inc (NYSE:PLNT) as a "bullish fresh pick" and maintained an "overweight" rating, suggesting the company may perform well despite a cooler growth environment [1] Group 1: Stock Performance - Shares of Planet Fitness are currently trading at $81.75, marking a 0.8% increase [1] - The stock is at its highest level since May 2023 and has surpassed its 20-day moving average, breaking through the $79 resistance level that had limited its rally in July [2] - Over the past 12 months, shares have increased by more than 36% [2] Group 2: Short Interest and Market Sentiment - Short interest in Planet Fitness has decreased by 23.7% over the last two reporting periods, indicating that bearish sentiment is waning [3] - Despite this decline, 5.04 million shares sold short still represent 6% of the stock's available float, suggesting lingering pessimism in the market [3] Group 3: Options Market Activity - The 50-day put/call volume ratio for Planet Fitness is 5.11, which is higher than 93% of readings from the past year, indicating a higher-than-usual popularity of puts in the options market [4] - The Schaeffer's Volatility Index (SVI) for the stock is at 23%, placing it in the 1st percentile of annual readings, which reflects low volatility expectations among options traders [4]

Core Viewpoint - Planet Fitness, Inc. (PLNT) has experienced a significant stock price increase of 35.6% over the past year, outperforming the Zacks Leisure and Recreation Services industry's growth of 1.9%, primarily due to its new growth model, effective pricing strategies, and international expansion efforts [1]. Factors Supporting PLNT's Uptrend - **Strategic Growth Model**: In 2023, Planet Fitness developed a new growth model aimed at enhancing returns from new stores by reducing capital requirements and operating expenses. The company aims to lower new unit and remodeling costs by at least 10% by the end of 2024 [3][4]. - **Pricing Strategies**: The company has implemented effective pricing strategies to mitigate inflation impacts, including a price increase for its Classic Card membership from $10 to $15, effective summer 2024 for new members. This is expected to lead to low to mid-single-digit percentage increases in average unit volumes for existing stores and a greater impact for new stores [5][6]. - **International Expansion Efforts**: Planet Fitness is actively expanding internationally, with its first European club opened in Barcelona, Spain. The company plans to open 140-150 new stores in 2024, including both franchise and corporate locations, having already opened 43 new stores in the first half of 2024 [7][8]. Concerns - **Persisting Inflation**: The company faces challenges due to ongoing inflation, which affects shipping, labor, and equipment costs, potentially impacting profitability. The uncertainty surrounding the ability to offset these cost increases remains a concern [9]. - **Macroeconomic Risks**: The reliance on franchisees introduces risks, including potential damage to the brand from third-party actions and vulnerabilities related to intellectual property violations [10].

Core Insights - A growing trend among gym users is the shift towards muscle building, which has become the primary fitness goal for 2024, surpassing weight loss and general movement [1] - Major fitness companies like Peloton and Planet Fitness are responding to this trend by increasing their focus on strength training [1] Company Strategies - Planet Fitness has adjusted its equipment mix to prioritize strength training, reflecting the preferences of its members, particularly Gen Z, who represent 25% of its customer base [2] - Peloton has initiated testing for a new app called Peloton Strength+, which is dedicated to strength workout plans, indicating a strategic pivot towards strength training [2] Market Trends - The preference for strength workouts is particularly pronounced among Gen Z, with a noted decline in the use of cardio equipment like ellipticals and bikes [3] - Planet Fitness reported better-than-expected revenue in its second-quarter earnings, attributing part of this success to the increased emphasis on strength workouts, which are generally less expensive to implement than cardio equipment [3] Demographic Insights - There is a notable increase in women engaging in strength training, with personal trainers observing a shift from traditional cardio and group fitness classes to strength-focused workouts [4]

Core Viewpoint - Planet Fitness (PLNT) has shown improvement in its business performance, with potential catalysts for growth acceleration expected in FY25, particularly under the leadership of the new CEO [2][3][13]. Financial Performance - In Q2 2024, PLNT reported revenue of $301 million, exceeding consensus expectations of $291 million, driven by franchise revenue of approximately $88 million, national advertising fund revenue of $20.1 million, corporate-owned stores revenue of $125.5 million, and equipment revenue of $68 million [3]. - Adjusted EBITDA was $128 million, surpassing street estimates by $4 million, while adjusted EPS was $0.71, beating expectations by $0.05 [3]. - Management reiterated FY24 guidance, projecting revenue growth of 4-6%, adjusted EBITDA growth of 7-9%, and adjusted EPS growth of 7-9% year-over-year [3]. Member Churn and Macro Environment - Member churn rates have improved and are trending towards normalized levels, although still elevated compared to historical data [3][13]. - The macroeconomic environment has stabilized, with inflation falling below 3% and a stable labor market, which is expected to enhance consumer spending and benefit PLNT [3][4]. Growth Catalysts - Management is testing new pricing for the Black Card membership, with potential increases from the current $24.99 to $27.99 or $29.99, representing a potential pricing uplift of approximately 16% [5]. - The new CEO, Colleen Keating, is focused on hiring a Chief Development Officer to drive unit growth, indicating a commitment to expanding the franchise model [8][9]. - PLNT has successfully attracted a growing number of Millennials and Gen Z members, which positions the brand well for future growth [8]. Leadership and Strategy - The new CEO's experience in the hospitality sector and her focus on enhancing the membership experience are seen as positive developments for PLNT [10][12]. - The CEO's strategic initiatives, including potential hiring of a COO and direct engagement with top management, are expected to improve operational effectiveness and credibility [10][12]. Valuation Outlook - PLNT's future valuation re-rating will depend on its ability to reaccelerate growth to historical double-digit levels, with two potential scenarios outlined: one where growth accelerates and another where it disappoints, leading to a significant derating [12].

For the quarter ended June 2024, Planet Fitness (PLNT) reported revenue of $300.94 million, up 5.1% over the same period last year. EPS came in at $0.71, compared to $0.65 in the year-ago quarter. The reported revenue represents a surprise of +2.93% over the Zacks Consensus Estimate of $292.39 million. With the consensus EPS estimate being $0.65, the EPS surprise was +9.23%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stree ...

Financial Performance - Total revenue for Q2 2024 reached $300,941, an increase of 5.2% compared to $286,463 in Q2 2023[11]. - Net income attributable to Planet Fitness, Inc. for Q2 2024 was $48,640, up 18.3% from $41,135 in Q2 2023[11]. - Basic net income per share for Q2 2024 was $0.56, compared to $0.49 in Q2 2023, reflecting an increase of 14.3%[11]. - Total operating costs and expenses for Q2 2024 were $213,562, a slight increase from $209,461 in Q2 2023[11]. - The company reported a total comprehensive income of $48,651 for Q2 2024, compared to $44,214 in Q2 2023, representing an increase of 10.5%[13]. - Net income for the period ending June 30, 2024, is reported at $49,312,000, reflecting a significant increase compared to previous periods[23]. - Net income for the six months ended June 30, 2024, was $84,285,000, an increase from $68,948,000 in the same period of 2023, representing a growth of approximately 22.1%[17]. - Adjusted net income for Q2 2024 reached $62,167 thousand, up 7.2% from $57,665 thousand in Q2 2023[112]. - Adjusted net income for the first half of 2024 was $109,427 thousand, a 16.3% rise from $94,056 thousand in the first half of 2023[115]. Assets and Liabilities - As of June 30, 2024, total assets increased to $2,974,040 thousand from $2,969,693 thousand as of December 31, 2023, reflecting a growth of approximately 0.15%[9]. - Cash and cash equivalents decreased to $246,961 thousand from $275,842 thousand, a decline of about 10.5%[9]. - Total current liabilities rose to $272,126 thousand compared to $251,329 thousand, marking an increase of approximately 8.3%[9]. - Long-term debt increased significantly to $2,156,551 thousand from $1,962,874 thousand, representing a rise of about 9.8%[9]. - The accumulated deficit grew to $(910,626) thousand from $(691,461) thousand, indicating an increase of approximately 31.7%[9]. - Total stockholders' deficit attributable to Planet Fitness, Inc. increased to $(317,664) thousand from $(115,649) thousand, a rise of approximately 174.5%[9]. - As of June 30, 2024, the total equity deficit stands at $319,830,000, with an accumulated deficit of $910,626,000[19]. - The total debt, net of deferred financing costs, was $2,177,051 as of June 30, 2024, compared to $1,983,624 as of December 31, 2023[53]. Revenue Segments - Total revenue from corporate-owned stores for Q2 2024 was $125,466, up 10.3% from $113,759 in Q2 2023[11]. - Franchise segment revenue in the U.S. for Q2 2024 was $104,541, up 8.8% from $96,337 in Q2 2023[85]. - Corporate-owned stores segment revenue in the U.S. for Q2 2024 was $124,187, an increase of 10.4% from $112,618 in Q2 2023[85]. - Franchise segment revenue increased to $107,790,000 for the three months ended June 30, 2024, up 9.9% from $98,842,000 in the prior year[97]. - Corporate-owned stores segment revenue increased to $125,466,000 for the three months ended June 30, 2024, compared to $113,759,000 in the same period of 2023, reflecting a growth of 10.5%[97]. Membership and Store Growth - As of June 30, 2024, Planet Fitness has approximately 19.7 million members and operates 2,617 locations across various regions[26]. - The number of franchisee-owned stores increased to 2,358 as of June 30, 2024, from 2,230 a year earlier, marking a growth of 5.7%[95]. - Corporate-owned stores increased to 259 as of June 30, 2024, from 242 a year earlier, representing a growth of 7.0%[95]. - Planet Fitness opened 18 new stores in the three months ended June 30, 2024, compared to 26 new stores in the same period of 2023[100]. - The company had contractual commitments to open approximately 1,000 new stores as of June 30, 2024[95]. Cash Flow and Investments - Cash flows from operating activities for the first six months of 2024 were $167,948, compared to $157,330 in the same period of 2023, indicating a growth of 6.5%[17]. - The company reported a net cash used in investing activities of $90,436,000 for the six months ended June 30, 2024, a significant decrease from $201,021,000 in the prior year, indicating improved cash management[17]. - The company issued $800,000,000 in long-term debt during the six months ended June 30, 2024, to support its financing activities[17]. - Net cash provided by operating activities increased to $167,948,000 for the six months ended June 30, 2024, compared to $157,330,000 for the same period in 2023, reflecting a rise of about 6.5%[17]. Strategic Initiatives - The company is focused on expanding its franchise model, which is critical for revenue growth and operational profitability[5]. - Future growth strategies include new store development by existing and new franchisees, which is essential for increasing revenues and operating profits[5]. - The company anticipates continued growth through new store development and strategic partnerships, despite potential risks associated with competition and market conditions[4]. Accounting and Compliance - The company is evaluating the impact of new accounting standards effective after December 15, 2023, on its financial disclosures[34]. - The company was in compliance with its debt covenants as of June 30, 2024, with no material changes to debt obligations during the period[154].