Latest news with #PLNT
Yahoo
5 days ago
- Business
- Yahoo
PLNT Q1 Earnings Call: Brand Evolution and Pricing Drive Member Growth Amid Tariff Concerns
Inclusive gym franchise company (NYSE:PLNT) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 11.5% year on year to $276.7 million. Its non-GAAP EPS of $0.59 per share was 4.1% below analysts' consensus estimates. Is now the time to buy PLNT? Find out in our full research report (it's free). Revenue: $276.7 million (11.5% year-on-year growth) Adjusted EPS: $0.59 vs analyst expectations of $0.62 (4.1% miss) Operating Margin: 28.6%, up from 26.5% in the same quarter last year Same-Store Sales rose 6.1% year on year, in line with the same quarter last year Market Capitalization: $8.83 billion Planet Fitness' first quarter performance was shaped by increased member engagement, strategic marketing, and ongoing product enhancements. CEO Colleen Keating highlighted the successful rollout of a refreshed brand campaign, noting that member visits per month reached their highest level in five years. The company also saw continued growth in its higher-priced Black Card membership tier, supported by targeted promotions and a narrowed pricing gap with the Classic Card. Management attributed the quarter's results to a balanced approach of rate increases and net membership growth, with Gen Z emerging as the fastest-growing demographic. CFO Jay Stasz pointed to effective cost control and a continued focus on franchisee unit economics as key operational themes. Looking ahead, management expects its strategic imperatives—brand repositioning, enhanced club formats, and expanded strength equipment—to support steady growth despite macroeconomic uncertainty and potential tariff impacts. CEO Colleen Keating said, 'We remain steadfastly focused on unit economics,' emphasizing that tariff exposure is being managed through vendor negotiations and alternative sourcing. The rollout of click-to-cancel functionality, required by new regulations, is also expected to impact churn rates in the near term but could improve join conversion over time. With new club openings weighted toward the back half of the year and ongoing tests of premium amenities, Planet Fitness believes its value proposition remains resilient, particularly among younger consumers. Management attributed the quarter's results to targeted marketing, club format enhancements, and a mix of price-driven and membership-led growth, while flagging tariff uncertainty and a regulatory change as operational headwinds. Black Card Membership Penetration: The proportion of members in the higher-priced Black Card tier rose to 65%, driven by successful first-month-free promotions and a narrowed price gap versus the Classic Card. This shift boosted average revenue per member and reflects consumer willingness to pay for added value. Brand Campaign and Member Engagement: The refreshed 'We Are All Strong' campaign improved brand perception and increased purchase intent from both former and prospective members. Management reported a 30%+ rejoin rate and the highest member club utilization in five years, indicating stronger engagement and retention. Club Format and Equipment Mix: Nearly 1,800 clubs now feature a more balanced mix of strength and cardio equipment, a change made in response to member feedback. Franchisees have overwhelmingly opted for this new layout, and management expects the transition to be completed across all clubs by year-end. Tariff Mitigation Efforts: The company is working closely with vendors to offset the impact of new tariffs on equipment. CFO Jay Stasz detailed efforts to leverage scale, negotiate with manufacturers, and explore alternative sourcing to protect franchisee economics, stating that current tariff levels do not materially impact 2025 targets. Regulatory Change—Click-to-Cancel: The mandated rollout of online membership cancellation is underway. While expected to increase churn initially, early tests showed it can also lift join conversion rates, potentially offsetting negative effects over time. Planet Fitness expects growth to be driven by ongoing brand investment, expanded club amenities, and careful management of external risks such as tariffs and regulatory changes. Brand and Product Investments: Management is prioritizing data-driven marketing campaigns, new club layouts, and expanded strength offerings to attract new members and boost retention. The High School Summer Pass program is also set to drive seasonal member engagement and longer-term conversion. Tariff and Cost Management: The company is proactively addressing tariff-related cost pressures by negotiating with vendors, sourcing equipment from alternative markets, and leveraging its purchasing scale. While current tariffs are not expected to affect 2025 guidance, management remains vigilant about potential future increases. Regulatory and Churn Impact: The full implementation of click-to-cancel functionality is expected to cause a short-term uptick in membership cancellations, but management believes improved member experience and transparency will help sustain growth. Early tests suggest increased join rates may counterbalance higher churn. In the coming quarters, the StockStory team will watch (1) the impact of the nationwide click-to-cancel rollout on both churn and join rates, (2) the pace and profitability of new club openings in the U.S. and international markets, and (3) the effectiveness of brand and product innovations—such as expanded strength equipment and premium Black Card amenities—in driving member growth and retention. Ongoing tariff developments and franchisee sentiment will also be important markers to monitor. Planet Fitness currently trades at a forward P/E ratio of 34.8×. At this valuation, is it a buy or sell post earnings? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
CNBC
03-06-2025
- Business
- CNBC
Here's why the Republican tax bill could give a jolt to gym stocks
The tax and spending bill winding its way through Congress could end up delivering a gift for exercise buffs and a boost to the stock price of their favorite gyms. The bill that passed the House of Representatives last month included a provision that would expand the allowable uses for health savings accounts to include "qualified sports and fitness expenses." HSAs work alongside high-deductible health insurance plans, and they allow savers to put away pre-tax dollars and have them accumulate free of taxes. The money can be withdrawn tax free to cover qualified medical expenses. The bill calls for allowing the HSA funds to pay up to $500 per year for an individual, and $1,000 for a joint return or head of household filing. At least for now, the tax benefit seems like it would only be a direct boost for gym stocks rather than equipment and apparel makers. "There's a distinction between kind of the online, at home versus in-person, live" said Ed Mills, Washington policy analyst at Raymond James. The gym stocks that could theoretically benefit include Planet Fitness , Life Time Group and their smaller rival Xponential Fitness , which has a market cap of less than $450 million. Of these, Planet Fitness seems to be the one that Wall Street analysts are identifying as a beneficiary, in part because its cheaper membership plans could be covered entirely by the tax-free allowance. "The impact would likely be particularly helpful for PLNT, as its monthly fee is only $15/month for the Classic Card and $24.99 for the Black Card (though it is conducting a test at $29.99), while the typical XPOF member pays > $100/month," Raymond James leisure products analyst Joseph Altobello said in a note. Similarly, Stifel analyst Chris O'Cull said in a recent note that PLNT should capture "at least its fair share" of the benefit from the policy change with the potential for even more benefits if the tax benefit makes customers more willing to accept price increases or trade up to the Black Card plan. "There are several potential questions to consider beyond the 'all else equal' scenario. First, incremental membership growth would increase the benefit of higher Classic membership pricing and any future Black Card pricing actions. Second, the ability to reimburse gym membership costs tax-free essentially equates to a price decrease for consumers, which could reduce churn rates. Finally, there could also be an impact on Black Card penetration rates if consumers prove more willing to trade up with the reimbursement," O'Cull wrote. The Stifel analyst upgraded Planet Fitness to buy from hold in that note. According to LSEG, 16 of the 18 Wall Street analysts covering the stock give it either a buy or strong buy rating. Life Time and Xponential also have buy ratings from the majority of their analysts but are covered by fewer firms. Timeline The tax bill still needs to pass the Senate and then likely another round of bicameral negotiations before it is sent to President Donald Trump for final approval. The fitness provision could fall out or change as a part of this process. Mills estimated that the bill could hit Trump's desk in August, with about 80% of the House legislation making the final cut. Given that the HSA expansion has not been controversial, Mills said the line item benefiting gyms has a "fairly high probability of staying in." Of course, the market may price in the expected benefits from the tax bill before it is signed by Trump. The gym stocks rose on Monday, and Planet Fitness is now up more than 6% over the past month. In a statement to CNBC, Life Time called the bill's provision a "low-cost, high-impact public health strategy." "As it considers the House version, we urge the U.S. Senate to retain this vital consumer health provision to promote the physical and mental wellbeing of millions of Americans," the statement said.
Yahoo
31-05-2025
- Business
- Yahoo
Is It Time To Consider Buying Planet Fitness, Inc. (NYSE:PLNT)?
Planet Fitness, Inc. (NYSE:PLNT), is not the largest company out there, but it saw a decent share price growth of 14% on the NYSE over the last few months. The company is inching closer to its yearly highs following the recent share price climb. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, what if the stock is still a bargain? Today we will analyse the most recent data on Planet Fitness's outlook and valuation to see if the opportunity still exists. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The stock seems fairly valued at the moment according to our valuation model. It's trading around 8.2% below our intrinsic value, which means if you buy Planet Fitness today, you'd be paying a reasonable price for it. And if you believe that the stock is really worth $112.02, then there isn't much room for the share price grow beyond what it's currently trading. Although, there may be an opportunity to buy in the future. This is because Planet Fitness's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. View our latest analysis for Planet Fitness Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Planet Fitness' earnings over the next few years are expected to increase by 58%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? PLNT's optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor? If you've been keeping an eye on PLNT, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. If you want to dive deeper into Planet Fitness, you'd also look into what risks it is currently facing. At Simply Wall St, we found 2 warning signs for Planet Fitness and we think they deserve your attention. If you are no longer interested in Planet Fitness, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
Planet Fitness, Inc. (PLNT): A Bull Case Theory
We came across a bullish thesis on Planet Fitness, Inc. (PLNT) on The Elevator Pitch's Substack. In this article, we will summarize the bulls' thesis on PLNT. Planet Fitness, Inc. (PLNT)'s share was trading at $104.8 as of 22nd May. PLNT's trailing and forward P/E were 49.67 and 35.97 respectively according to Yahoo Finance. A customer talking to a personal coach while working on their fitness goals in a modern gym. Planet Fitness (PLNT) is the leading US gym operator with about 20 million members, running an asset-light franchise model focused on the 'high-value low-price' (HVLP) segment. Its large, no-frills gyms offer clean, basic facilities at a low monthly fee of $15, attracting a broad customer base including beginners, students, and lower-income individuals. The company benefits from strong growth drivers like healthy aging, rising fitness awareness via social media, and GLP-1 weight-loss drugs encouraging exercise, which have increased gym membership penetration in the US. PLNT dominates the market, capturing roughly 90% of new members between 2011 and 2019 and holding a 30% share of total US gym-goers, far larger than competitors. With over 2,500 gyms, PLNT targets about 5% annual unit growth, carefully opening locations to avoid cannibalization. Pricing power is driven by its 'Black Card' membership, now 64% of members. Scale allows strong brand recognition and marketing, while recurring revenue from franchise royalties and equipment sales adds cash flow stability. Franchisees achieve EBITDA margins of 35-40%, like high-end hotels but with much lower startup costs. Despite recent CEO changes and a brief PR issue, Planet Fitness has shown resilience through recessions, delivering 18% revenue CAGR over the last decade. The asset-light model drives a group EBITDA margin near 40%, with improving free cash flow conversion and recovering ROIC expected to approach pre-pandemic levels above 25%. Though valuation is demanding at 20x EV/EBITDA, PLNT offers sticky revenue, growth potential, margin expansion, and international upside optionality. Planet Fitness, Inc. (PLNT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held PLNT at the end of the fourth quarter which was 34 in the previous quarter. While we acknowledge the risk and potential of PLNT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PLNT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
Stifel Upgrades Planet Fitness (PLNT) Stock to Buy, Raises PT
On May 22, Stifel analysts upped Planet Fitness, Inc. (NYSE:PLNT)'s stock from 'Hold' to 'Buy,' increasing the price objective to $120 from the prior target of $82. The upgrade comes after an evaluation of its recent performance and expected growth catalysts. The analysts have noted stabilized gross joins and numerous factors that can fuel comparable sales to mid-to-high-single-digit growth in the upcoming years. Planet Fitness, Inc. (NYSE:PLNT) continues to focus on improving marketing strategies, which analysts opine can be optimized to see better results. A smiling person in sports gear testing out a piece of new fitness equipment. Additionally, the firm expects that Planet Fitness, Inc. (NYSE:PLNT) will increase its Black Card pricing. This can result in a 3% - 4%-point benefit to its comparable sales (comps). Its efforts focused on enhancing the Black Card Spa experience have been regarded as a favourable move. Stifel upped its comp and unit growth estimates for Planet Fitness, Inc. (NYSE:PLNT) as it anticipates sustained member growth and a multi-year pricing tailwind to fuel performance. Because of the strength and durability of its model, the company delivered healthy growth in Q1 2025 despite higher volatility in the macroeconomic environment. Its total revenue went up by 11.5% YoY to $276.7 million. Planet Fitness, Inc. (NYSE:PLNT) is engaged in franchising and operating fitness centers under the Planet Fitness brand. While we acknowledge the potential of PLNT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLNT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
