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Planet Fitness, Inc. (0KJD.L)

LSE - LSE Delayed price. Currency in USD
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82.68+3.28 (+4.12%)
At close: 03:54PM BST

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  • S
    Stanley
    PE 97 in this economy? Look for PE's under 5 to be safe.
  • S
    Stanley
    PE 108 even at today's stock drop in price. Wake up people.
  • A
    Ace
    Please take a look at ticker ILUS as well - ILUS INTERNATIONAL - EVs, Drones, UAVs, Urban Mining, and patented firefighting / safety technology. ILUS is profitable in their first year and uplisting, Every quarter that they have reported since inception has posted higher profits and revenues. ILUS has completed 8 acquisitions in the last 18 months. One of the more notable is that of Vira Drones, with an estimated billion dollar valuation. They have also recentlyt acquired Wikisoft, ticker WSFT. Please see Yahoo Finance for more details and news. They are undervalued and worth a look.
  • S
    Salubrix
    Free memberships to HS kids to all summer? I don't need that kind of chaos when I go to work out. Will probably end my membership as a result.
  • J
    JT_kirk20
    Bought gyms at the top of the market
    those buys will be upside down by 2023
  • T
    Tom
    Can anyone explain how this can sell with a p/e of 140 in an industry that has to have shrinkage as people look to cut their expenses? Fitness clubs seem to be one of the first to go.
  • g
    gary
    Planet Fitness Earnings
    Revenue for the chain rose 30.1% to $174.4 million. The results just beat Wall Street's forecast for $173.69 million. Wall Street expected Planet Fitness earnings per share to jump 33% to 32 cents. But the earnings came in higher, at 34 cents.

    Same-store sales rose 10.1%, marking the company's 48th straight quarter of positive same-stores sales gains.

    For the full year, Planet Fitness forecast a roughly 15% revenue gain. Analysts currently expect $637.15 million in revenue for 2019. That would mark an 11% gain from the $572.9 million Planet Fitness logged for all of last year.

    Planet Fitness also said it expected a 25% jump in adjusted earnings per share. Wall Street forecast EPS of $1.43 for 2019, which would be a 17% gain from the $1.22 per share Planet Fitness earned in 2018.

    The company said it expected same-store sales to increase "in the high single digits." That's a slight deceleration from the 10.2% posted last year.

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    Planet Fitness Stock
    Planet Fitness stock jumped 2.5% to 58.30 after hours in the stock market today. The IBD 50 stock on Friday briefly topped a 59.62 flat-base entry, touching a record 61.51 before drifting lower. Shares continued falling Monday.

    Planet Fitness stock on Tuesday was finding support at its 50-day line. The 50-day line is a key test of investors' support in a stock. Planet Fitness stock traded tightly for much of this year.

    'Amazonian' Business Model?
    The attempted breakout by Planet Fitness stock on Friday came after a Jefferies analyst said the company had an "Amazonian business model" that protected it from competition.

    The analyst, Randal Konik, likened the company to a "platform," along the lines of Netflix (NFLX) and Amazon, that could drive sales and consumer commitment.

    That platform, he said, consisted of digital services like an app that makes for smoother service. More "premium memberships," advertising, and a broader array of gym equipment could help create more loyal customers. The company's Black Card perks program has room to grow. Franchising should keep expansion brisk and lighten the company's costs.

    And in some ways, Amazon (AMZN), which has forced physical retailers to clear out of stores over the years, has also helped companies like Planet Fitness grow.

    "From our group of experienced franchisees who are eager to expand their footprints to increasingly favorable real estate trends, our growing national and local advertising budgets and our initiatives aimed at enhancing the member experience, we believe there are tremendous opportunities to build on our recent accomplishments," Planet Fitness CEO Chris Rondeau said in a statement on Tuesday.

    'Robust' Fitness Industry
    Planet Fitness last year said it would "work to build upon our current momentum as brick-and-mortar retail continues to be under pressure from online businesses." Management added that "landlords are increasingly looking to Planet Fitness to drive traffic in their centers."

    Konik said that the fitness industry remains "robust," as rival high-value, low-price gyms expand as well.

    But the discount fitness center market remains fairly scattered. Only a handful have more than 100 stores to their name, compared to Planet Fitness' 1,650. Konik said Planet Fitness' "marketing engine allows it to pull away from the pack."

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    BLOW OUT EARNINGS - Revenue for the chain rose 30.1% to $174.4 million. The results just beat Wall Street's forecast for $173.69 million. Wall Street expected Planet Fitness earnings per share to jump 33% to 32 cents. But the earnings came in higher, at 34 cents.
  • .
    .
    Planet Fitness reports bigger quarterly loss than expected..
  • J
    Jack
    Liabilities greater than assets is pretty scary. There will be some if not a lot of franchises that will not be able to keep it’s commitments to Corp-scary. How do they plan to pay 2 billion dollars in debt when net income for the quarter is a small 10 million and no income potentially for foreseeable future-scary. Stock price to me seems like it should be about $30 per share
  • R
    Robbie
    Planet only owns about 100 of the 2000 gyms, the other 1900 are franchised. Franchisee either lease from Planet or they lease the facility on their own. Planet also receives a 7% royalty as well as finances gym equipment for the franchisee.
    Folks thinking its just $10.00 a month and they wont cancel is a stretch. Most folks upgrade to the $25.00 pkg. So there will be some cancellations as well as little new memberships.
    Corporate Planet Fitness does have a lot of negatives coming at it.
  • S
    Sum Invest
    Opening a Planet Fitness on average for a Franchisee is between 1.5Million - 4 Million. Average Net Profits between $100K-$200K. Time to recoup initial investment 10-25 years. Franchise stores grew at a slow pace YOY for a 1st Q at 2,142 locations this year compared to 2021 locations last year. With a 6.6 Billion Market Cap, P/E Ratio of 142 and net income of 42 Million last year with stalled growth you would be better off buying a franchise then this stock. With slowing growth this should drop to a 10X-20X P/E not 142.
  • J
    Jack
    Has anyone invested in this look at the balance sheet? Where the liabilities are greater than the assets. It’s very risky to own this stock as revenue will be drastically reduced for a long time as well as many franchises likely not to honor commitments to Corporate
  • M
    M.D.
    Short at 65 cover at 50. No one is going to gyms anytime soon even if they open today.
  • j
    jimmy
    I don’t know why anyone would want to sell now, all stores are open generating cash, lots of cash. Much better to go to a large gym like PF than some small one right now where space may be a problem. In 2 months everyone that wants a vaccine shot will have one.
  • i
    isabel
    EPS target is being lowered significantly by firms recently. Another today.
  • A
    Andrew
    I just commented on this and now it was deleted. CAN SOMEONE EXPLAIN HOW THIS STOCK HAS RALLIED ALONGSIDE S&P when they’ve been closed for 2-3 months? Also, does anyone else feel that their reported new sign up figures are complete BS? HOW IN THE WORLD ARE THEY REPORTING NEW MEMBER SIGNUPS ON PAR WITH LAST YEAR? CALL ME CRAZY BUT DOESNT SEEM REMOTELY POSSIBLE
  • R
    Robbie
    Out of the 2000 locations only 100 are company owned. The rest are all franchised. That just means that there 1900 agreements that each one stands on its own.
    7% royalty could be a problem. Planet hold 100's of master leases that they sublet to the franchisee......lots of exposure. This company has so many moving pieces and the rapid growth can sometimes do more harm then good.
  • R
    RK
    Who are buying at this level the GYMS will be closed for another 3 /4 months it will go below $40 in next few weeks . It will take 6/9 months from now to get back to normal by the most of people will be used to some online work outs it will be a long how to see growth
  • B
    Bikerguy
    I’m good friends with the regional manager, We spoke at length about the growth that they are seeing store to store district district and region to region year over year today versus before Covid. They have a 3% increase in enrollment that’s it. The general problem that they’re experiencing like everybody else is labor and hiring managers for clubs Most of the people that are applying for a manager position have little to no qualifications. The person also went on to tell me that the region that she is in was acquired by a hedge fund they have 120 clubs in their region and the new matrix that the owners are looking at our black club memberships black club enrollments. The black card enrollments are flat there’s been no increase as virtually everybody that signs up is doing it for their basic low and one club membership the alleged suppose benefits for a black card outside of planet fitness with corporations for discounts are not an incentive enough for people to spend the extra $12 a month. I have to say as a shareholder I’m very disappointed in hearing only a 3% increase in enrollment I would’ve suspected 15 to 20% increase since the world is opening back up and we’re looking at other businesses that are Reliant upon consumers going into a location say restaurants movie theaters they are all up 15-20% or greater. And planet fitness needs to have an immediate corrective course of action because of my eyes 3% is Flat. We spoke for about an hour and a half total there’s other areas of concern that I voiced from what I see when going into the clubs where I work out as a primary club and the other clubs in the area that I also work out at we discussed their sales training program which is virtually nonexistent. Needless to say flat to 3% earnings growth is not going to provide any increase shareholder value in the near term.
  • D
    Debbi
    Also, perhaps most important to confirm brand strength, same store sales growth was over 11%. The street was expecting 9%. They beat on every metric. I wouldn't be surprised if it opens at new 52-week high and holds. It never should have tanked in January to begin with, when that one analyst downgraded it right after New Years while the broad market ripped 20% higher. Turns out he was dead wrong. Now all that selling has to be reversed just to bring it back to last year's reality. Then up another 10% based on the new earnings guidance. A slow drift to $40 is not out of the question if the market holds up.