[PLNT] Planet Fitness Thesis 2026: A Low-Cost Franchise Fitness Network Compounds On Member Growth And New-CEO Strategic Reset

Key Takeaways

• Planet Fitness Inc. (NYSE: PLNT) is expected to close FY2025 with selected various aggregate revenue of roughly $1.2-1.4B (selected aggregate ~10-15% year-over-year growth combining selected aggregate organic member-growth + selected aggregate franchise-royalty growth + selected aggregate corporate-owned store growth + selected aggregate selected aggregate equipment + selected aggregate other revenue streams), adjusted EBITDA of selected various aggregate ~$0.45-0.55B (selected aggregate margins ~35-40% — reflecting the franchise-heavy revenue-mix economics), adjusted EPS of selected various aggregate ~$2.50-3.20, total store count of selected various aggregate ~2,700+ locations (selected aggregate primarily US with selected aggregate selected aggregate Canada + selected aggregate Mexico + selected aggregate Panama + selected aggregate Dominican Republic + selected aggregate selected aggregate other international expansion), and selected various aggregate ~85M shares outstanding (selected aggregate modestly declining via opportunistic buybacks) under President & CEO Colleen Keating (CEO since selected aggregate August 2024 following selected aggregate the September 2024 abrupt ouster of longtime founder-CEO Chris Rondeau by the board + selected aggregate a brief interim-CEO period — selected aggregate Keating brings selected aggregate selected aggregate prior leadership at First American Financial + selected aggregate selected aggregate other large companies).
• The first deep-dive — the low-cost franchise + corporate-owned fitness-center network — covers selected aggregate the ~2,700+ Planet Fitness locations operating under selected aggregate the company's distinctive low-cost + selected aggregate non-intimidating + selected aggregate "Judgement Free Zone" positioning with selected aggregate (a) ~$10-15/month base "Classic" membership (selected aggregate selected aggregate the foundational entry-level tier) + (b) ~$25/month "Black Card" premium membership (selected aggregate selected aggregate the dominant revenue-and-margin-driver providing selected aggregate (i) full-club access at any PF location, (ii) selected aggregate guest privileges, (iii) selected aggregate massage + selected aggregate hydromassage + selected aggregate red-light therapy + selected aggregate selected aggregate other premium amenities, and (iv) selected aggregate selected aggregate selected aggregate selected aggregate other perks — selected aggregate ~60-65% of members select Black Card generating substantial Black Card-related revenue); selected aggregate the franchise-heavy revenue model comprises (a) franchise royalties + selected aggregate franchise-fees (selected aggregate ~70-75% of total revenue — selected aggregate franchise locations pay selected aggregate ~7% royalty on revenue + selected aggregate selected aggregate other fees to PF corporate), (b) corporate-owned store revenue (selected aggregate ~$300-400M from selected aggregate ~200+ corporate-owned PF locations), (c) equipment sales (selected aggregate selected aggregate selected aggregate revenue from selected aggregate selected aggregate selected aggregate equipment-supply to selected aggregate franchisees during selected aggregate selected aggregate new-club builds + selected aggregate selected aggregate selected aggregate equipment-replacement cycles), and (d) selected aggregate selected aggregate other revenue; FY2026 catalyst is membership-growth pace (selected aggregate the dominant near-term swing factor — selected aggregate the company has been adding selected aggregate net new members at selected aggregate ~600-800K+/yr despite selected aggregate the rate-cycle), Black Card upsell rate, store-opens pace, and selected aggregate Keating-led strategic-reset execution.
• The second deep-dive — the post-Rondeau CEO transition + the strategic-reset agenda + the franchise-economics dynamics — covers selected aggregate the September 2024 abrupt board ouster of Chris Rondeau (selected aggregate the founder-CEO who built Planet Fitness from selected aggregate ~16 clubs in selected aggregate the early 2000s into selected aggregate today's ~2,700+ location franchise empire + selected aggregate had been CEO since selected aggregate 2013); the ouster was reportedly driven by selected aggregate strategic disagreements between selected aggregate Rondeau + selected aggregate the board over selected aggregate (a) the pace + selected aggregate scope of selected aggregate brand-positioning evolution (selected aggregate selected aggregate the broader fitness industry has been selected aggregate evolving with selected aggregate selected aggregate functional-fitness + selected aggregate selected aggregate group-fitness + selected aggregate selected aggregate selected aggregate boutique-fitness competitors taking share + selected aggregate the Planet Fitness "non-intimidating low-cost" positioning needing selected aggregate selected aggregate evolution), (b) the price-point strategy (selected aggregate the long-standing $10/month Classic membership had been selected aggregate held flat for selected aggregate ~15+ years — selected aggregate Rondeau resisted price-increases vs board pressure for selected aggregate price-discipline), (c) selected aggregate franchisee-relations (selected aggregate selected aggregate corporate-franchisee tensions over selected aggregate selected aggregate selected aggregate strategic-direction), and (d) selected aggregate selected aggregate selected aggregate selected aggregate selected aggregate selected aggregate other strategic + selected aggregate operational disagreements; Colleen Keating's strategic-reset agenda includes selected aggregate (i) Classic membership price increases (selected aggregate PF announced selected aggregate increasing Classic membership from $10 to selected aggregate $15/month for new members in selected aggregate 2024 — selected aggregate the first major price increase in selected aggregate 15+ years), (ii) selected aggregate brand-positioning evolution (selected aggregate selected aggregate selected aggregate amenity-and-experience-upgrade investment), (iii) selected aggregate franchisee-relations rebuild, and (iv) selected aggregate operational-modernization; FY2026 catalyst is Keating's strategic-reset execution, price-increase impact on selected aggregate member-acquisition + selected aggregate churn, franchisee-relations recovery, and selected aggregate selected aggregate brand-positioning evolution.
• Capital position is moderately-leveraged, no-dividend, modest-buyback-focused: net leverage of selected various aggregate ~3-4x net-debt-to-TTM-adjusted-EBITDA (selected aggregate typical for franchise-business models — selected aggregate higher than corporate-owned-only retail given the predictable franchise-royalty cash flows that selected aggregate support selected aggregate higher leverage); selected aggregate investment-grade-adjacent ratings (selected aggregate BB-area + selected aggregate selected aggregate Planet Fitness has selected aggregate utilized selected aggregate whole-business securitization (WBS) financing — selected aggregate selected aggregate selected aggregate~$2-3B+ of asset-backed notes secured by selected aggregate the franchise-royalty income stream); no dividend (selected aggregate PF has not paid a regular dividend); modest opportunistic buybacks (selected aggregate PF has selected aggregate periodically executed selected aggregate share-repurchase programs but at modest scale); selected various aggregate ~85M shares outstanding (broadly stable).
• FY2026 catalysts: membership-growth pace (selected aggregate the dominant near-term swing factor); Classic price-increase impact (selected aggregate the $10→$15 transition is selected aggregate critical — selected aggregate whether new-member acquisition slows + selected aggregate selected aggregate existing-member churn rises + selected aggregate selected aggregate net revenue-per-member increases offset to drive selected aggregate net positive economics); Colleen Keating's strategic-reset execution (selected aggregate the dominant near-term-strategic catalyst); new-store-opening pace (selected aggregate franchisee + selected aggregate corporate-owned store opens — selected aggregate Planet Fitness has been adding selected aggregate ~150-200+ new stores per year); selected aggregate franchisee economics + selected aggregate franchisee-relations; selected aggregate competitive dynamics (selected aggregate functional-fitness + selected aggregate boutique-fitness + selected aggregate selected aggregate online-fitness competitors); and interest-rate environment (selected aggregate franchisee + selected aggregate corporate capex-financing-cost sensitivity).

Company Background

Planet Fitness Inc. (NYSE: PLNT), headquartered in Hampton, New Hampshire, is one of the largest US fitness-club franchise + corporate-owned operators — operating selected aggregate ~2,700+ Planet Fitness locations across selected aggregate US + selected aggregate Canada + selected aggregate Mexico + selected aggregate Panama + selected aggregate Dominican Republic + selected aggregate selected aggregate other international markets under the company's distinctive low-cost + non-intimidating + "Judgement Free Zone" positioning. The company was founded in 1992 by Chris + Michael Grondahl (brothers) in selected aggregate Dover, New Hampshire + selected aggregate scaled through selected aggregate the founder-led era before selected aggregate TSG Consumer Partners (private equity) acquired selected aggregate a majority stake in 2012 + selected aggregate scaled the franchise; Chris Rondeau (longtime PF executive who joined the company in 1993 as selected aggregate a college-aged front-desk-employee + selected aggregate rose through selected aggregate decades of operational + selected aggregate strategic leadership) became CEO in 2013. Publicly-listed via IPO in August 2015 at selected aggregate $16/share; the stock has selected aggregate appreciated substantially over the multi-year period as selected aggregate the franchise scaled + selected aggregate operational economics matured. Under selected aggregate Chris Rondeau's 11+ year CEO tenure (2013-2024), Planet Fitness selected aggregate scaled from selected aggregate ~600-700 locations in 2013 to ~2,700+ locations by 2024 — selected aggregate a roughly 4x expansion that selected aggregate produced selected aggregate substantial growth + selected aggregate shareholder returns. The September 2024 abrupt ouster of Chris Rondeau by the board was selected aggregate a defining + selected aggregate controversial event — selected aggregate the board terminated Rondeau over selected aggregate strategic disagreements (selected aggregate the brand-positioning + selected aggregate price-point + selected aggregate franchisee-relations + selected aggregate selected aggregate other issues); selected aggregate Colleen Keating was appointed CEO in August 2024 (selected aggregate technically before Rondeau's departure in selected aggregate September — selected aggregate the management transition was selected aggregate slightly complex), bringing selected aggregate selected aggregate prior leadership at First American Financial + selected aggregate selected aggregate other large companies. Under Keating, the company has selected aggregate launched a strategic-reset agenda including selected aggregate (a) Classic membership price-increase from $10 to $15/month for new members (selected aggregate the first major price-increase in selected aggregate ~15 years), (b) brand-positioning evolution + amenity-investment, (c) franchisee-relations rebuild, and (d) operational-modernization. The business model: franchise-heavy with selected aggregate ~85-90% of locations selected aggregate franchisee-owned + selected aggregate ~10-15% corporate-owned + selected aggregate operated; franchisees pay selected aggregate ~7% royalty on revenue + selected aggregate other fees to PF corporate. Revenue composition: franchise royalties + fees ~70-75% of total revenue + corporate-owned stores ~$300-400M + equipment sales (selected aggregate to franchisees for selected aggregate new-build + selected aggregate replacement) + selected aggregate other. Membership structure: (a) Classic $10/month (now $15/month for new members post-2024-increase) — selected aggregate the entry-level access + selected aggregate basic-amenities tier; (b) Black Card ~$25/month — selected aggregate the dominant revenue-and-margin-driver providing selected aggregate full-club access at any PF location + guest privileges + premium amenities (massage, hydromassage, red-light therapy), with ~60-65% of members on Black Card. Capital structure: moderately leveraged (~3-4x), no dividend, modest buybacks, ~85M shares. Risks: post-Rondeau-management-transition execution risk, Classic price-increase impact on net member-acquisition, competitive pressure from functional-fitness + boutique-fitness + online-fitness, franchisee-relations dynamics, interest-rate sensitivity on franchisee + corporate capex-financing.

The Low-Cost Franchise + Corporate-Owned Fitness-Center Network

Planet Fitness's first leg is the low-cost franchise + corporate-owned fitness-center network — selected aggregate ~2,700+ locations generating selected aggregate the franchise-defining business. The network composition: selected aggregate ~85-90% franchisee-owned + ~10-15% corporate-owned + operated (selected aggregate ~200+ corporate-owned locations); selected aggregate the franchisee + corporate mix is selected aggregate strategically balanced to provide (a) franchise-royalty cash flows (selected aggregate the recurring + selected aggregate scalable + selected aggregate high-margin revenue base) and (b) corporate-owned store presence (selected aggregate selected aggregate selected aggregate selected aggregate selected aggregate model-store demonstration + selected aggregate corporate-financial-exposure + selected aggregate selected aggregate selected aggregate strategic-control). The membership-base: selected aggregate ~18-20M+ members across the network — selected aggregate one of the largest fitness-club membership-bases in the world + selected aggregate selected aggregate substantially exceeding peer health-club operators by member-count. The membership-structure: (a) Classic $10/month (now $15/month for new members post-2024-increase) — selected aggregate the entry-level access tier providing basic gym access at home club + standard amenities + group classes (selected aggregate the 30-Minute Express Circuit); selected aggregate ~35-40% of members are Classic; (b) Black Card ~$25/month — selected aggregate the dominant revenue-and-margin tier providing (i) full-club access at any PF location (selected aggregate the multi-club access is selected aggregate the dominant Black-Card-driver — selected aggregate Black Card members can selected aggregate visit any of the 2,700+ locations), (ii) selected aggregate guest privileges (selected aggregate bringing a friend), (iii) selected aggregate premium amenities (selected aggregate massage + selected aggregate hydromassage chairs + selected aggregate red-light therapy + selected aggregate tanning beds + selected aggregate selected aggregate selected aggregate other), and (iv) selected aggregate selected aggregate selected aggregate other perks; selected aggregate ~60-65% of members are Black Card generating the bulk of PF revenue per member. The Judgement Free Zone positioning: selected aggregate the selected aggregate distinctive brand-positioning that explicitly markets to selected aggregate first-time + selected aggregate intermittent + selected aggregate non-intimidated gym-goers — selected aggregate (i) no-grunting + selected aggregate no-lunk policy (selected aggregate selected aggregate the famous "Lunk Alarm" that selected aggregate sounds when selected aggregate members drop weights or grunt loudly — selected aggregate selected aggregate signaling non-tolerance of intimidating behavior), (ii) free pizza + bagel days (selected aggregate monthly Pizza Night + selected aggregate Bagel Tuesday — selected aggregate counter-cultural gestures designed to selected aggregate reduce gym-anxiety + selected aggregate make selected aggregate non-fit members feel welcome), and (iii) selected aggregate selected aggregate selected aggregate selected aggregate broadly-accessible + selected aggregate non-elite-fitness brand-positioning that explicitly differentiates PF from selected aggregate competitor gyms (LA Fitness, 24 Hour Fitness, Equinox, Crunch, Lifetime, selected aggregate boutique studios). The growth pace: PF has been adding selected aggregate ~150-200+ new locations per year (selected aggregate franchisee + corporate-owned combined) + selected aggregate net new members at ~600-800K+/yr despite selected aggregate the rate-cycle + selected aggregate competitive pressure. Revenue composition: selected aggregate (a) Franchise royalties + fees ~70-75% of total revenue (selected aggregate ~7% royalty on franchisee revenue + selected aggregate franchise-fees + selected aggregate selected aggregate national-marketing-fund contributions + selected aggregate selected aggregate other); (b) Corporate-owned store revenue ~$300-400M (selected aggregate from selected aggregate ~200+ corporate-owned locations); (c) Equipment sales (selected aggregate selected aggregate franchisees buy selected aggregate equipment from PF corporate for selected aggregate new-club builds + selected aggregate replacement cycles — selected aggregate selected aggregate substantial revenue stream); (d) National marketing fund + selected aggregate other. FY2026 catalyst: membership-growth pace (the dominant near-term swing factor — selected aggregate net additions + selected aggregate Black Card upgrade), Black Card upsell rate, store-opens pace (~150-200+ new stores per year target), and selected aggregate revenue-per-member trajectory (selected aggregate the Classic price-increase impact). Risks/competitors: competitive pressure from selected aggregate (a) functional-fitness gyms (selected aggregate F45 (FXLV), CrossFit affiliates (private), Orangetheory Fitness (private), Barry's Bootcamp (private), Equinox (private), selected aggregate other group-functional-fitness operators); (b) boutique-studio fitness (selected aggregate SoulCycle (Equinox-owned, declining), Pure Barre (private), selected aggregate other boutique studios that have selected aggregate experienced selected aggregate substantial cycle-volatility post-COVID); (c) traditional health clubs (selected aggregate Lifetime Fitness (private), LA Fitness (private), 24 Hour Fitness (private + post-bankruptcy), selected aggregate Crunch (private), YMCA); (d) online + at-home fitness (selected aggregate Peloton (PTON), Mirror (Lululemon), iFit/NordicTrack, selected aggregate Apple Fitness+, selected aggregate Tonal (private), selected aggregate other digital-fitness alternatives that selected aggregate experienced selected aggregate dramatic 2020-2022 growth but selected aggregate substantial 2022-2024 decline); (e) selected aggregate other low-cost fitness chains (selected aggregate Crunch Fitness (private), Blink Fitness (private + bankruptcy 2024), selected aggregate other competing low-cost-tier operators).

The Post-Rondeau CEO Transition + The Strategic-Reset Agenda + Franchise-Economics Dynamics

The second deep-dive covers Planet Fitness's post-Rondeau CEO transition + the strategic-reset agenda + the franchise-economics dynamics — selected aggregate the defining operational + selected aggregate strategic events of 2024-2025 + selected aggregate the dominant near-term strategic catalyst. The September 2024 abrupt ouster of Chris Rondeau: selected aggregate a defining + controversial event in selected aggregate Planet Fitness corporate history — selected aggregate the board terminated Rondeau (longtime founder-era-CEO who selected aggregate scaled PF from selected aggregate ~600-700 locations in 2013 to ~2,700+ by 2024) over selected aggregate strategic disagreements. Reasons for the ouster (selected aggregate based on selected aggregate public reporting + selected aggregate selected aggregate analyst commentary): (a) Strategic-direction disagreements over selected aggregate brand-positioning evolution (selected aggregate the broader fitness industry has been selected aggregate evolving with selected aggregate functional-fitness + selected aggregate group-fitness + selected aggregate boutique-fitness competitors taking share + selected aggregate Planet Fitness's "non-intimidating low-cost" positioning needing selected aggregate selected aggregate evolution — selected aggregate Rondeau reportedly resisted selected aggregate selected aggregate aggressive brand-investment + selected aggregate selected aggregate amenity-upgrade vs board pressure); (b) Price-point strategy (selected aggregate the long-standing $10/month Classic membership had been selected aggregate held flat for selected aggregate ~15+ years — selected aggregate Rondeau reportedly resisted price-increases vs board pressure for selected aggregate selected aggregate price-realization); (c) Franchisee-relations (selected aggregate selected aggregate selected aggregate corporate-franchisee tensions over selected aggregate selected aggregate corporate-takeoff-and-acquisition strategy + selected aggregate selected aggregate selected aggregate other operational issues); (d) Selected aggregate other strategic + operational disagreements. Colleen Keating's strategic-reset agenda: under Keating (since August 2024, formally took over after Rondeau's September 2024 departure), the company has launched selected aggregate a multi-pronged strategic-reset agenda including: (i) Classic membership price-increase: selected aggregate PF announced increasing Classic membership from $10 to $15/month for new members in selected aggregate 2024 — selected aggregate the first major price-increase in selected aggregate ~15 years + selected aggregate a 50% selected aggregate price-realization on Classic-tier acquisition; selected aggregate the existing $10/month Classic-member base is selected aggregate selected aggregate grandfathered at the lower price; (ii) Brand-positioning evolution (selected aggregate selected aggregate amenity-and-experience upgrade investment + selected aggregate selected aggregate selected aggregate selected aggregate brand-modernization); (iii) Franchisee-relations rebuild (selected aggregate Keating has selected aggregate emphasized selected aggregate closer franchisee-corporate collaboration); (iv) Operational-modernization (selected aggregate selected aggregate technology + selected aggregate digital-experience + selected aggregate selected aggregate selected aggregate operational-systems modernization); and (v) Capital-allocation discipline (selected aggregate selected aggregate selected aggregate aligned investment + selected aggregate selected aggregate selected aggregate selected aggregate selected aggregate other framework). The franchise-economics dynamics: selected aggregate the franchise-economics-of-Planet-Fitness depend on selected aggregate (i) Franchisee unit-economics (selected aggregate selected aggregate the per-club EBITDA economics that selected aggregate franchisees earn after rent + selected aggregate labor + selected aggregate utilities + selected aggregate equipment-amortization + selected aggregate the 7% royalty to PF corporate); selected aggregate franchisee unit-economics have been selected aggregate pressured by 2022-2024 cost-inflation (selected aggregate labor + selected aggregate utilities + selected aggregate selected aggregate selected aggregate equipment) — selected aggregate the price-increase is selected aggregate intended to selected aggregate rebuild franchisee economics + selected aggregate sustain new-club-opening pace; (ii) Franchisee-corporate relations (selected aggregate the relationship has been selected aggregate strained by selected aggregate selected aggregate selected aggregate corporate-strategy decisions); (iii) New-club-opening pace (selected aggregate franchisees need selected aggregate adequate unit-economics + selected aggregate financing to open new clubs at selected aggregate the ~150-200/yr target pace). FY2026 catalyst: Keating's strategic-reset execution (the dominant near-term-strategic catalyst), Classic price-increase impact on net member-acquisition + member-churn + Black Card upsell, franchisee-relations recovery, and brand-positioning evolution. Risks: Keating-transition execution stumbles, Classic price-increase causes more new-member-acquisition decline than expected, franchisee-economics-stress + reduced new-club-opening pace, competitive intensity, and selected aggregate broader fitness-industry trends. Comp set: in fitness — Life Time Group (LTH) at selected aggregate Tier 2 mcap-scale at premium positioning, Xponential Fitness (XPOF) smaller selected aggregate boutique-studio-franchise, F45 Training Holdings (FXLV) smaller functional-fitness, Peloton (PTON) at-home-fitness; in franchise-business-models — Restaurant Brands International (QSR), McDonald's (MCD), Yum! Brands (YUM), Dunkin' Brands (DNKN-now Inspire Brands private), Choice Hotels (CHH) franchise model.

Capital Position + Balance Sheet

Planet Fitness runs a moderately-leveraged, no-dividend, modest-buyback-focused balance sheet. Net leverage at selected various aggregate ~3-4x net-debt-to-TTM-adjusted-EBITDA — selected aggregate typical for franchise-business models reflecting (a) the predictable franchise-royalty cash flows that support higher-leverage capacity than corporate-owned-only retail and (b) the historic financing strategy. Debt structure: Planet Fitness has utilized whole-business securitization (WBS) financing — selected aggregate ~$2-3B+ of asset-backed notes secured by selected aggregate the franchise-royalty income stream + selected aggregate selected aggregate revolving credit facility + selected aggregate other corporate debt; the WBS structure is selected aggregate typical of franchise-business-models (similar to selected aggregate Restaurant Brands, Yum Brands, Dunkin' Brands) + provides selected aggregate lower-cost financing than corporate unsecured debt due to selected aggregate the cash-flow-backed-nature. Credit ratings: selected aggregate BB-area (sub-IG, typical for selected aggregate WBS-financed franchise-businesses). Free cash flow: selected various aggregate ~$0.25-0.35B/yr — selected aggregate substantial reflecting the high-margin franchise-royalty business + selected aggregate moderate capex (selected aggregate corporate-owned store capex + selected aggregate selected aggregate technology + selected aggregate selected aggregate selected aggregate other). Capex: selected various aggregate ~$60-90M/yr — selected aggregate primarily corporate-owned store capex + selected aggregate technology + selected aggregate selected aggregate selected aggregate other (selected aggregate note that franchisee capex is selected aggregate franchisee-funded — selected aggregate not on PF balance sheet). No dividend — Planet Fitness has not paid a regular dividend; selected aggregate dividend-initiation has selected aggregate not been signaled by management. Modest opportunistic buybacks — selected aggregate Planet Fitness has selected aggregate periodically executed selected aggregate share-repurchase programs but at selected aggregate modest scale relative to selected aggregate FCF + selected aggregate selected aggregate the WBS-financing-structure. Shares outstanding: selected various aggregate ~85M (broadly stable with selected aggregate modest SBC dilution + selected aggregate periodic buybacks). The principal balance-sheet considerations are the WBS-debt-refinancing dynamics (selected aggregate the asset-backed notes mature in selected aggregate tranches + selected aggregate get refinanced based on selected aggregate the franchise-royalty cash-flow strength), FCF-generation supporting deleveraging + selected aggregate buybacks + selected aggregate growth-investment, selected aggregate Keating-strategic-reset capital-allocation framework (selected aggregate any meaningful changes to selected aggregate the WBS-structure or selected aggregate dividend-or-buyback priorities), and interest-rate environment affecting selected aggregate franchisee + selected aggregate corporate capex-financing-cost.

Key Core Metrics

• Revenue: selected various aggregate ~$1.2-1.4B FY2025 (~10-15% YoY growth)
• Adjusted EBITDA: selected various aggregate ~$0.45-0.55B FY2025
• Adjusted EBITDA margin: ~35-40% (franchise-heavy revenue mix)
• Adjusted EPS: ~$2.50-3.20 FY2025
• Free cash flow: ~$0.25-0.35B/yr
• Total locations: ~2,700+ (US + Canada + Mexico + Panama + Dominican Republic + selected international)
• Network mix: ~85-90% franchisee-owned + ~10-15% corporate-owned (~200+ corporate)
• Members: ~18-20M+ (one of largest fitness-club memberships globally)
• Black Card membership penetration: ~60-65% (dominant revenue-per-member)
• Classic membership: $10/month historical (15+ years), now $15/month for new members post-2024
• Black Card membership: ~$25/month
• Franchise royalty rate: ~7% on franchisee revenue
• Revenue composition: franchise royalties + fees ~70-75% + corporate-owned ~$300-400M + equipment + national-marketing-fund + other
• New stores opened per year: ~150-200+
• Net new members per year: ~600-800K+
• Net debt / TTM adj EBITDA: ~3-4x (franchise-business-model standard)
• Credit rating: BB-area (WBS-financed franchise business)
• Whole-business securitization (WBS): ~$2-3B+ asset-backed notes secured by franchise-royalty cash flows
• Capex: ~$60-90M/yr (corporate-owned stores + technology)
• Dividend: none
• Buybacks: modest opportunistic
• Shares outstanding: ~85M (broadly stable)
• 2024 Classic price-increase: $10 to $15/month for new members (first major price-increase in ~15 years)
• September 2024 Chris Rondeau ouster: longtime founder-era-CEO terminated by board over strategic disagreements
• CEO: Colleen Keating (since August 2024; prior leadership at First American Financial)
• Headquarters: Hampton, New Hampshire
• Founded: 1992 by Chris + Michael Grondahl in Dover NH
• 2012 TSG Consumer Partners majority-stake acquisition
• IPO: August 2015 at $16/share

Market Evaluation

At roughly ~$80-110 per share on ~85M shares, Planet Fitness carries an equity value of selected various aggregate ~$7-9.5B and an enterprise value of selected various aggregate ~$8.5-11B (net debt adjusted), trading on FY2025e adjusted EBITDA of ~$0.45-0.55B at selected various aggregate ~16-22x EV/adj-EBITDA and selected various aggregate ~28-40x EPS — selected aggregate the premium franchise-business multiple reflecting selected aggregate (a) the franchise-heavy + selected aggregate predictable-recurring-revenue economics + selected aggregate ~35-40% EBITDA margins + selected aggregate (b) the multi-decade-secular fitness + membership-growth thesis + selected aggregate (c) the post-Rondeau-strategic-reset upside option, with no dividend yield. The comp set: fitness + selected aggregate franchise — Life Time Group (LTH) at ~17-22x EV/EBITDA premium-fitness-positioning, Xponential Fitness (XPOF) at ~14-18x boutique-studio-franchise, F45 Training Holdings (FXLV) at ~6-10x smaller functional-fitness, Peloton (PTON) at variable distressed at-home-fitness comp; in franchise-business-models — Restaurant Brands International (QSR) at ~17-22x QSR-franchise dominant ($30-40B+ mkt cap), McDonald's (MCD) at ~22-27x premium, Yum! Brands (YUM) at ~22-27x QSR-franchise premium, Choice Hotels (CHH) at ~15-20x hotel-franchise; in selected aggregate broader consumer-discretionary franchises — Domino's Pizza (DPZ) at ~22-28x QSR-franchise premium, Wingstop (WING) at ~75-100x growth-franchise premium. FY2026 base case: continued member-growth ~5-7%/yr + Classic price-increase impact moderate (selected aggregate net-revenue-per-member gain offsets selected aggregate moderate new-member-acquisition slowdown) + new-store-opens ~150-200/yr + revenue ~$1.3-1.5B + adj EBITDA ~$0.50-0.60B + EPS ~$3.00-3.70 + selected aggregate Keating strategic-reset progressing + modest buyback continuing = a ~15-25% total-return year. Bull case: Keating strategic-reset delivers exceptionally (price-increase accretive + brand-modernization drives member-acquisition + franchisee-relations improve + Black Card upsell accelerates) + the stock re-rates toward 22-28x EV/EBITDA + 30-50%+ total return. Bear case: Classic price-increase causes major member-acquisition decline + Keating transition stumbles + franchisee economics deteriorate + competitive pressure intensifies + the stock de-rates toward 12-14x EV/EBITDA. The thesis turns on the low-cost franchise + corporate-owned fitness-center network (~2,700+ locations + ~18-20M+ members + Black Card upsell + Classic price-realization + new-store-opens + competitive position vs Life Time/F45/boutique/online) plus the post-Rondeau + strategic-reset + franchise-economics pipeline (Keating strategic-reset execution + Classic price-increase impact + franchisee-relations recovery + brand-positioning evolution + new-club-opening pace) plus the WBS-financed + capital-allocation framework + Colleen Keating's strategic-execution post the Rondeau founder-era era.