Planet Fitness exceeds expectations with new Chief Executive at the helm

Global fitness franchise, Planet Fitness, has posted strong results for the second quarter of 2024 with its share prices having risen by more than 11%. Revenue rose by 5.1% on the previous year, to US$300.9 million, beating the forecasted US$290.18 million.

During the second quarter, Planet Fitness - which now has almost 19.7 million members - completed a US$800 million refinancing and executed a US$280 million share repurchase.

Colleen Keating, appointed new Chief Executive for Planet Fitness in June noted "as we enter our next chapter, we're committed to further defining our growth ambition and capitalising on the meaningful opportunities across the industry, both in the US and internationally.

“This includes maintaining a steadfast focus on delivering an unparalleled member experience, evolving our brand messaging and operating under the principle that when our franchisees win, we win. By doing so, I'm confident in our potential for long-term sustainable growth of stores and members and our ability to deliver significant value for shareholders.”

Planet Fitness is aiming for between 140 and 150 new locations by the end of 2024 and commissions from new equipment placements at 120-130 in franchisee-owned locations. This will mean opening a further 98 - 108 locations in the second half of this year against the 42 in the first half, marking a significant increase in opening rates.

Image. Credit: Planet Fitness