Planet Fitness
Planet Fitness is hedging its bets.
What’s happening: The HVLP gym operator announced 2023 earnings, reporting positive gains with 18.7M members, 2,575 clubs, and a 14% revenue jump to $1.1B.
But, interim CEO Craig Benson will sacrifice near-term profit for ambitious growth, marked by new concepts and global expansion.
Across the planet. Entering an untapped market, PF plans to open 300 locations in Spain. At home, it upped its US gym ceiling from 4K to 5K after adding 165 posts in ‘23.
Scale model. Lowering costs for franchisees, it’s easing equipment repurchase deadlines and reducing capital expenditures.
It’ll also test a small-footprint gym for low-population suburban and rural areas, all while scaling its ad network to boost club revenue.
Price is right. A win, 40% of new members are first-time gym goers. But the brand had higher-than-expected churn after piloting price hikes of its base membership.
Meanwhile, price-sensitive Gen Zers now make up >25% of its member base, with PF converting more free Summer Pass teens to paying members than in prior years.
TBD. A “transition year,” the company tempered its FY24 outlook with modest same-store sales growth and fewer club openings — all without locking in a full-time CEO.
Experiencing growing pains, Ex-chief Chris Rondeau departed the board and the company cut 9% of its workforce this month.
Punchline: Facing high real estate costs and pressure from rivals Crunch and 24 Hour Fitness, Planet Fitness is looking toward the country and abroad for fresh turf.
