PLNT

Planet Fitness, Inc.

Consumer


Presented:03/02/2018
Price:$37.71
Cap:$3.71B
Current Price:$82.77
Cap:$7.00B

Presented

Date03/02/2018
Price$37.71
Market Cap$3.71B
Ent Value$3.56B
P/E Ratio85.7x
Book ValueN/A
Div Yield0%
Shares O/S98.38M
Ave Daily Vol1,191,357
Short Int16.15%

Current

Price$82.77
Market Cap$7.00B
Planet Fitness, Inc. operates and franchises 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 U. S., Puerto Rico, and Canada. The Corporate-Owned Stores segment deals with the operations with respect to all corporate-owned stores throughout the U. S. and Canada. The Equipment segment sells equipment to franchisee-owned stores. The company was founded by Michael Grondahl and Marc Grondahl in 1992 and is headquartered in Newington, NH.

Publicly traded companies mentioned herein: Planet Fitness Inc (PLNT)

Highlights

The presenter is long shares of Planet Fitness (PLNT) based on its solid unit economics, persistent comp growth at aging locations, and optionality around a potential leveraged recapitalization. Bears consider gyms bad businesses given recent failures (Gold’s and Bally’s) and see the “strange” tax receivables agreements as a negative. However, the presenter believes the accounting issue is a benefit and the business economics are very favorable, as evidenced by strong expansion demand from franchisees. While he is not planning on multiple expansion, he sees an EPS CAGR of mid- to high-20% and thinks the stock can reach the mid-$40s by the end of 2018.

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Idea Discussion

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