Planet Fitness Announces Key Year-End Metrics

Rhea-AI Summary

Planet Fitness (NYSE: PLNT) has announced key operational metrics for year-end 2024. The company reached 19.7 million members and achieved a 5.0% increase in system-wide same club sales. Throughout 2024, Planet Fitness expanded its footprint by opening 150 new clubs, including 21 corporate-owned locations, bringing the total to 2,722 clubs across multiple countries.

The company highlighted several achievements in 2024, including refinancing partial debt, implementing an accelerated share repurchase program, introducing an enhanced economic model for club operations, increasing the Classic Card price for new members, and evolving their brand strategy. Planet Fitness also strengthened its leadership team with new Chief Development Officer and Chief Marketing Officer appointments. The company plans to release full fiscal year 2024 results and 2025 outlook on February 25, 2025.

Positive

• Membership growth to 19.7 million members
• 5.0% increase in system-wide same club sales
• 150 new club openings, expanding to 2,722 total locations
• Implementation of accelerated share repurchase program
• First Classic Card price increase in over 25 years

Negative

• None.

Insights

Financial Analyst

Planet Fitness's year-end metrics reveal a 5.0% system-wide same-store sales growth and membership expansion to 19.7 million, demonstrating resilient consumer demand in the fitness sector. The addition of 150 new clubs, including 21 corporate-owned locations, signals strong unit economics and execution of their expansion strategy.

The company's strategic moves in 2024, particularly the Classic Card price increase - the first in over 25 years - and debt refinancing, position them well for margin expansion. The implementation of an enhanced economic model for club operations suggests potential improvements in franchisee profitability, which is important for sustaining growth momentum.

Their total club count of 2,722 locations provides significant scale advantages in terms of brand recognition and operational efficiency. The international expansion across multiple countries indicates untapped growth potential beyond the saturated U.S. market.

Market Research Analyst

The fitness industry's post-pandemic recovery trajectory is evident in Planet Fitness's performance metrics. Their high-value, low-price model continues to resonate, with the 19.7 million membership base demonstrating strong market penetration. The strategic leadership additions of Chip Ohlsson and Brian Povinelli from consumer-facing brands suggest a renewed focus on expansion and brand evolution.

Their franchise-heavy business model (90% franchisee-owned) provides capital-light growth opportunities while maintaining steady revenue streams through equipment placements and royalties. The 124 new franchised locations equipped in 2024 indicate healthy franchisee demand and confidence in the business model.

The timing of the Classic Card price increase amid inflation pressures shows pricing power without sacrificing their value proposition, potentially setting the stage for improved unit economics in 2025.

Ended 2024 with total membership of approximately 19.7 million
Full year System-Wide Same Club Sales increase of 5.0%
Opened 150 new Planet Fitness clubs
Equipment placed in 124 new franchised clubs

Company to discuss operating metrics in fireside chat at the ICR Conference on Monday, January 13, 2025

HAMPTON, N.H., Jan. 13, 2025 /PRNewswire/ -- Planet Fitness, Inc. (NYSE: PLNT), one of the largest and fastest-growing franchisors and operators of fitness centers with more members than any other fitness brand, today provided an overview of key year-end operational metrics.

As of December 31, 2024, Planet Fitness grew its membership to approximately 19.7 million members and full year system-wide same club sales increased by 5.0 percent. Additionally, in 2024, the Company placed equipment in 124 new franchised locations and opened 150 new Planet Fitness clubs, including 21 corporate-owned locations, bringing system-wide total clubs to 2,722.

Colleen Keating, Chief Executive Officer, said, "We delivered solid results in 2024 and met the growth objectives we outlined at the start of the year. Key achievements included refinancing a portion of our debt, initiating an accelerated share repurchase program, introducing an enhanced economic model for opening and operating a Planet Fitness club, raising the new member Classic Card price for the first time in more than 25 years, and evolving our brand strategy which was deployed as part of our year-end marketing campaign."

Ms. Keating continued, "We have continued building on our momentum to start the year by strengthening our leadership team with the additions of Chip Ohlsson as Chief Development Officer and Brian Povinelli as Chief Marketing Officer. Chip and Brian are both highly experienced executives with proven track records leading consumer-facing brands through periods of expansion while collaborating with franchisees to drive profitable growth. We enter 2025 with a focus on continued execution of our strategic objectives – redefining our brand, enhancing member experience, refining our product, and accelerating club openings. We're confident that delivering on these initiatives will boost the economic value proposition for all stakeholders – franchisor, franchisees, and members – and ultimately deliver increasing value for shareholders."

Full Year Results

The Company plans to release its full fiscal year 2024 results and a 2025 outlook on February 25, 2025.

Live Webcast

Management's previously announced fireside chat presentation at the 2025 ICR Conference is scheduled for January 13, 2025, at 3:00 pm Eastern Time.

A live webcast of the presentation will be available at http://investor.planetfitness.com.

About Planet Fitness

Founded in 1992 in Dover, NH, Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness centers in the world by number of members and locations. As of December 31, 2024, Planet Fitness had approximately 19.7 million members and 2,722 clubs in 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia, and Spain. The Company's mission is to enhance people's lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which we call the Judgement Free Zone®. More than 90% of Planet Fitness stores are owned and operated by independent business men and women.

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SOURCE Planet Fitness, Inc.

FAQ

What was Planet Fitness's (PLNT) membership growth in 2024?

Planet Fitness reached approximately 19.7 million members by the end of 2024.

How many new clubs did Planet Fitness (PLNT) open in 2024?

Planet Fitness opened 150 new clubs in 2024, including 21 corporate-owned locations, bringing the total to 2,722 clubs.

What was Planet Fitness's (PLNT) same club sales growth in 2024?

Planet Fitness reported a 5.0% increase in system-wide same club sales for 2024.

When will Planet Fitness (PLNT) release its full fiscal year 2024 results?

Planet Fitness plans to release its full fiscal year 2024 results and 2025 outlook on February 25, 2025.

What major business changes did Planet Fitness (PLNT) implement in 2024?

Planet Fitness refinanced partial debt, initiated a share repurchase program, introduced an enhanced economic model for clubs, and increased the Classic Card price for new members for the first time in over 25 years.