Core Insights - The S&P 500 index has generated a total return of 13% over the past 12 months, with significant volatility due to trade policy and economic uncertainty [1] - Planet Fitness has outperformed the broader index, with a 61% increase in stock price over the past year [1] Financial Performance - Planet Fitness reported Q1 2025 revenue of $277 million, an increase of 11.5% driven by the opening of 19 new locations, totaling 2,741 [3] - Same-store sales (SSS) grew by 6.1%, indicating increased productivity from existing locations [4] - Management expects SSS to rise between 5% and 6% in 2025, with revenue projected to increase by 10% [4] Membership Growth - Planet Fitness added 900,000 new members in Q1, bringing the total membership to 20.6 million [6] - The company believes it can expand to 5,000 fitness clubs in the U.S., significantly increasing revenue and earnings [7] Business Model - The franchise model allows Planet Fitness to operate with only 10% of locations owned directly, reducing capital requirements and fueling growth [8] - The company has maintained an average operating margin of 26% over the past decade, indicating strong profitability [9] Valuation and Investment Considerations - Shares of Planet Fitness have performed well, but the forward price-to-earnings (P/E) ratio is 35.6, which may be considered expensive [10][11] - Consensus forecasts suggest earnings per share will rise at an annualized pace of about 15% from 2024 to 2027 [11] - While the stock may not be a straightforward buy due to valuation concerns, it could be a viable option for exposure to the fitness industry [12]

Core Insights - Planet Fitness reported revenue of $276.66 million for the quarter ended March 2025, marking an 11.6% year-over-year increase, with EPS of $0.59 compared to $0.53 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $281.54 million, resulting in a surprise of -1.73%, while the EPS also missed the consensus estimate of $0.62 by -4.84% [1] Financial Performance Metrics - Total stores at the end of the period were 2,741, slightly below the estimated 2,746 [4] - Same-store sales increased by 6.1%, exceeding the estimated 5.4% [4] - Franchisee-owned same-store sales were reported at 6.2%, also above the estimated 5.4% [4] - Corporate-owned same-store sales were 5.1%, slightly above the 5% average estimate [4] - The company opened 19 new stores, below the average estimate of 23 [4] Revenue Breakdown - National advertising fund revenue was $21.94 million, surpassing the average estimate of $21.55 million, reflecting a year-over-year change of +10.9% [4] - Franchise revenue reached $93.24 million, slightly below the average estimate of $93.54 million, with a year-over-year increase of +10.7% [4] - Equipment segment revenue was $27.81 million, exceeding the average estimate of $27.36 million, with a significant year-over-year increase of +28.7% [4] - Corporate-owned stores segment revenue was $133.67 million, below the average estimate of $136.20 million, showing a year-over-year change of +9.2% [4] - Franchise segment revenue was $115.18 million, slightly above the estimated $115.09 million, with a year-over-year increase of +10.7% [4] Stock Performance - Planet Fitness shares have returned +7.6% over the past month, compared to the Zacks S&P 500 composite's +11.3% 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]