PLNT

Planet Fitness Inc - Ordinary Shares - Class A

Consumer


Presented:03/21/2024
Price:$58.86
Cap:$5.03B
Current Price:$82.77
Cap:$7.00B

Presented

Date03/21/2024
Price$58.86
Market Cap$5.03B
Ent Value$8.29B
P/E Ratio36.26x
Book ValueN/A
Div Yield0%
Shares O/S85.44M
Ave Daily Vol1,523,751
Short IntN/A

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: Anheuser-Busch InBev SA/NV (BUD), Kroger Co/The (KR), Planet Fitness Inc (PLNT), Target Corp (TGT), Walmart Inc (WMT)

Highlights

The presenter is long shares of Planet Fitness Inc (PLNT) based on the view that pretty much everything that could go wrong for the business has gone wrong in recent years, but several upcoming catalysts should allow PLNT’s EBITDA multiple to normalize. PLNT had historically garnered a premium multiple to other franchise businesses due to its strong unit growth until several headwinds led to a major deceleration in unit growth, which in turn has caused the stock’s multiple to compress from its premium (~25x EBITDA) to the current ~13x 2025 EBITDA. He notes that the current multiple is lower than the average franchise concept’s mid- to high-teen forward EBITDA valuation despite the expectation that unit growth will accelerate in 2025 and PLNT guiding to solid 2024 EBITDA growth (10% – 11%) in the context of new store growth bottoming. The stock could trade up on several catalysts throughout the year (data on March trends, new CEO, details on pricing tests), and should rerate to at least the mid- to high-teen 2025 EBITDA range on the Q4’24 print assuming management guides to stronger unit growth in 2025.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.