Planet Fitness Shares Surge on Strong Membership Growth and Expansion
Planet Fitness experiences a significant stock boost driven by robust membership growth and an increase in store openings, surpassing profit and revenue expectations.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, leading teams of anchors, reporters, and editors in delivering impactful news coverage on major events.
Highlights
- Planet Fitness exceeded profit and revenue forecasts while expanding its member base and store locations.
- Interim CEO Craig Benson unveiled initiatives to enhance the profitability and appeal of store ownership and operations.
- Benson is actively supporting the board in recruiting a permanent CEO following Chris Rondeau's departure.
Shares of Planet Fitness (PLNT) soared after the fitness club operator reported stronger-than-anticipated quarterly results and raised its full-year outlook, fueled by increased membership and new store openings.
The company posted third-quarter fiscal earnings per share (EPS) of $0.59 and revenue of $277.6 million, marking a 13.6% increase year-over-year—both figures surpassing analyst expectations. Same-store sales rose by 8.4%, aligning with projections.
Planet Fitness reported a membership count exceeding 18.5 million at the end of September, up from 18.4 million in the previous quarter and 18.1 million earlier in the year. The chain expanded its footprint by adding 26 new locations during the quarter, bringing the global total to 2,498.
Interim CEO Craig Benson announced operational changes aimed at improving store-level returns amid evolving market conditions. These adjustments include lowering capital expenditures by extending timelines for equipment replacement and remodeling projects.
Benson also confirmed his role in aiding the board's search for a new permanent CEO after the unexpected mid-September exit of former CEO Chris Rondeau, who remains involved on the board to facilitate a smooth transition.
The company now projects full-year revenue growth of 14%, an increase from the prior estimate of 12%. Additionally, it anticipates EBITDA growth of 18%, up from the previously forecasted 17%.
Following the CEO transition, Planet Fitness shares dropped to their lowest point since the COVID-19 pandemic began but have since rebounded, though they still trail approximately 20% below their year-to-date highs.
Discover engaging topics and analytical content in Company News as of 12-11-2023. The article titled " Planet Fitness Shares Surge on Strong Membership Growth and Expansion " provides new insights and practical guidance in the Company News field. Each topic is meticulously analyzed to deliver actionable information to readers.
The topic " Planet Fitness Shares Surge on Strong Membership Growth and Expansion " helps you make smarter decisions within the Company News category. All topics on our website are unique and offer valuable content for our audience.