PLNT

Planet Fitness Inc - Ordinary Shares - Class A

Consumer


Presented:05/23/2023
Price:$66.47
Cap:$5.65B
Current Price:$82.77
Cap:$7.00B

Presented

Date05/23/2023
Price$66.47
Market Cap$5.65B
Ent Value$8.42B
P/E Ratio53.17x
Book ValueN/A
Div Yield0%
Shares O/S84.96M
Ave Daily Vol924,646
Short Int4.24%

Current

Price$82.77
Market Cap$7.00B
Planet Fitness, Inc. engages in the operation and franchising of fitness centers. It operates through the following segments: Franchise, Corporate-Owned Stores, and Equipment. The Franchise segment includes operations related to the company's franchising business in the United States, Puerto Rico, Canada, the Dominican Republic, Panama, Mexico, and Australia. The Corporate-Owned Stores segment comprises operations with respect to all Corporate-owned stores throughout the United States and Canada. The Equipment segment involves the sale of equipment to franchisee-owned stores. The company was founded by Michael Grondahl and Marc Grondahl in 1992 and is headquartered in Hampton, NH.

Publicly traded companies mentioned herein: Planet Fitness Inc (PLNT), Topgolf Callaway Brands Corp (MODG)

Highlights

The presenter is short shares of Planet Fitness Inc (PLNT), which he considers a broken growth story. PLNT is a franchise model with a 90/10 store split in favor of franchisee-owned locations. Roughly 1/3 of gyms went out of business during the pandemic, so investors took PLNT’s multiple higher given the lessened competition and a general consumer focus on health & wellness. Management is guiding to 175 new units this year and an average of 200 per year from 2023 – 2025, but he thinks PLNT will miss on 2023 unit growth and revise the 3-year guidance based on the current pace and persistent headwinds. He is below consensus EBITDA in 2023 and 2024, and a 14x 2024 EBITDA multiple on his $460MM estimate implies 18% downside to $55 per share from the current $67.

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Idea Discussion

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