Back to top

Image: Bigstock

Planet Fitness (PLNT) Membership Increases in 2023, Stock Up

Read MoreHide Full Article

Planet Fitness, Inc. (PLNT - Free Report) presented a summary of crucial operational metrics at the end of 2023. Following the announcement, the company’s shares gained 1.7% on Jan 8.

As of Dec 31, 2023, Planet Fitness witnessed growth in its membership, reaching around 18.7 million members. This marked an increase of 1.7 million members since the close of 2022. It also reported an 8.7% rise in system-wide same-store sales for the entire year.

Furthermore, in 2023, it introduced equipment in 135 new franchised locations and inaugurated 165 new Planet Fitness stores, including 18 corporate-owned locations. This expansion brought the total number of system-wide stores to 2,575.

The company’s New Growth Model, designed to minimize the capital needed for opening and running a Planet Fitness location, emphasizes its commitment to employing a disciplined, data-driven approach to enhance store-level returns.

Zacks Investment Research
Image Source: Zacks Investment Research

Solid Brand to Drive Growth

Planet Fitness is one of the largest and fastest-growing franchisors as well as operators of fitness centers in the United States. To boost its presence in Mexico, it announced a joint venture with a prominent local retail services company and one of its largest U.S. developers. This agreement is set for the development of a minimum of 80 new stores over the next five years.

During the third quarter of 2023, PLNT reported 26 new store openings. Given growth potential on the back of changing market dynamics along with tailwinds related to health and wellness, the company remains optimistic for a 4,000-plus domestic store opportunity over the long term, with 600 new stores by the end of 2025.

Planet Fitness presently carries a Zacks Rank #3 (Hold). In the past six months, shares of the company have gained 6.6%, against the industry’s decline of 7.1%.

Key Picks

Here are some better-ranked stocks from the Zacks Consumer Discretionary sector.

Virco Mfg. Corporation (VIRC - Free Report) presently sports a Zacks Rank #1 (Strong Buy). VIRC has a trailing four-quarter earnings surprise of 188.6%, on average. VIRC’s shares have surged 161.3% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for VIRC’s 2024 sales and earnings per share (EPS) indicates a rise of 15.7% and 32.4%, respectively, from the year-ago  levels.

Stride, Inc. (LRN - Free Report) currently flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 44.3%, on average. Shares of LRN have surged 77% in the past year.

The Zacks Consensus Estimate for LRN’s 2024 sales and EPS suggests 10.8% and 34.7% growth, respectively, from the year-earlier actuals.

Bluegreen Vacations Holding Corporation presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 29.4%, on average. Shares of BVH have soared 187.6% in the past year.

The Zacks Consensus Estimate for BVH’s 2024 sales and EPS implies 1.5% and 22.6% improvement, respectively, from the prior-year figures.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Virco Manufacturing Corporation (VIRC) - free report >>

Stride, Inc. (LRN) - free report >>

Planet Fitness, Inc. (PLNT) - free report >>

Published in