Planet Fitness(PLNT) ZACKS·2024-12-24 15:05Core Viewpoint - Planet Fitness, Inc. has demonstrated exceptional performance in 2024, achieving a 37.3% growth year to date, significantly outperforming the S&P 500 and the industry average [1]. Group 1: Stock Performance - As of Monday, Planet Fitness stock closed at 10 to $15 after a disciplined pricing test, marking the first price change in 26 years [8]. - The company anticipates a low to mid-single-digit percentage increase in top-line revenue from existing clubs approximately one year after the new pricing implementation [9]. Group 5: Expansion Strategy - Planet Fitness is pursuing strategic partnerships and international expansion, including opening its first European club in Barcelona, Spain, and entering a joint venture in Mexico to develop new stores over the next five years [10]. - The company also plans to expand into New Zealand with new club locations over the coming years [10]. Group 6: Earnings and Revenue Growth - The Zacks Consensus Estimate for 2024 and 2025 has been revised upward by 2.9% and 3.5%, respectively, with expected earnings growth of 11.6% and 17% year over year [11]. - Sales are projected to increase by 8.9% in 2024 and 10.1% in 2025 [11]. Group 7: Overall Performance and Investment Potential - Planet Fitness's strong performance in 2024 is attributed to effective strategic initiatives, including the new growth model, cost management, and international expansion [12]. - The company's disciplined pricing adjustments and focus on delivering value position it for sustainable growth, making it an attractive investment opportunity for growth-oriented investors [12].