Planet Fitness net worth in 2024 reflects the financial success of one of the largest fitness chains in the world. At $6.89 billion, the company’s market cap is a key indicator of its value.
As I represent Ando Money, I will break down the latest financial insights into how Planet Fitness maintains its position in the industry and what contributes to its growth.
Quick Fact
| FACT | DETAIL |
|---|---|
| Name | Planet Fitness |
| Full Name | Planet Fitness, Inc. |
| Website | planetfitness.com |
| Industry | Fitness |
| Traded as | NYSE: PLNT |
| ISIN | N/A |
| Founded | 1992 |
| Founders | Michael Grondahl, Marc Grondahl |
| Country/Territory | United States |
| Headquarters | Hampton, New Hampshire, U.S. |
| Chief Executive Officer | Colleen Keating |
| Number of Employees | N/A |
| Market Cap | $6.89 billion |
| Total Assets | $2.97 billion |
| Total Equity | – $317.6 million |
| Revenue | $300.9 million (Q2 2024) |
| Net Income | $48.6 million (Q2 2024) |
What is the Net Worth/Market Cap Of Planet Fitness in 2024?
As of October 2024, Planet Fitness has a market cap of $6.89 billion, placing it among some of the most valuable fitness brands globally.
This valuation reflects a healthy growth trajectory, backed by expanding store networks, robust memberships, and strategic financial management.
While its market cap is significant, there are other notable brands and companies in the industry that share the competitive stage.
Here are some related entities that Planet Fitness competes or partners with:
- Anytime Fitness
- LA Fitness
- 24 Hour Fitness
- Gold’s Gym
- Snap Fitness
- Equinox
- Crunch Fitness
- Orangetheory Fitness
- Lifetime Fitness
- Peloton
If you’re curious about how other successful companies rank in comparison, you can check out the richest companies here.
Planet Fitness Financial Performance Overview
Franchise Segment Growth
In 2024, Planet Fitness’s franchise segment played a pivotal role in driving revenue. In Q2 2024, franchise segment revenue totaled $107.8 million, an increase from the previous year.
This growth was driven by new store openings and increased royalty revenue. The rise in same-store sales, up by 4.3%, also contributed to higher overall performance.
The franchise model remains a core part of the business strategy, with over 90% of stores being franchise-owned.
Corporate-Owned Stores Revenue
Corporate-owned stores also saw substantial gains. In Q2 2024, the corporate stores segment brought in $125.5 million, an increase of 10.3% from the prior year.
Same-store sales were up 4.0%, with the addition of new locations helping to strengthen this revenue stream.
Corporate stores contribute significantly to the overall revenue, although the franchise model remains the largest contributor.
Equipment Sales and Contributions
Though equipment sales experienced a slight dip, the equipment segment still contributed $67.7 million in revenue for Q2 2024.
This represented a decline compared to $73.9 million in the previous year. The decrease in equipment sales was attributed to fewer new franchise store openings.
Nevertheless, this revenue stream remains a critical component of Planet Fitness’s financial ecosystem, driven by sales to both new and existing franchisees.
Impact of Store Expansion on Financial Growth
Planet Fitness continues to expand its footprint, with 18 new stores added in Q2 2024, bringing the total number of stores to 2,617.
This expansion strategy is integral to the company’s financial growth, as each new store adds to the revenue stream through membership fees, equipment sales, and franchise royalties.
Revenue from Memberships and Subscription Models
Membership growth is a key revenue driver. As of June 2024, Planet Fitness had 19.7 million members.
The pricing structure includes different tiers, such as the Black Card membership, which provides additional benefits at a higher fee.
With its low-cost subscription model, Planet Fitness attracts a wide range of customers, helping it sustain long-term revenue growth.
Advertising and Marketing Revenue
Planet Fitness also generates revenue through its National Advertising Fund (NAF), with $20.1 million contributed in Q2 2024.
The company’s marketing strategy is focused on brand recognition and member acquisition, leveraging the Judgement Free Zone® philosophy to attract a broad audience.
Effective marketing campaigns and the use of social media have helped grow the member base and, in turn, franchisee and corporate store sales.
Share Repurchase Programs and Their Financial Implications
In Q2 2024, Planet Fitness executed a $280 million share repurchase program, buying back 3.1 million shares.
This action, designed to return value to shareholders, has had a positive impact on earnings per share (EPS), which increased to $0.56 per diluted share, up from $0.48 in the same period the previous year.
Cash Flow Management and Investment Activities
As of June 2024, Planet Fitness reported $447.7 million in cash and marketable securities.
A recent $800 million refinancing transaction enabled the company to reduce interest expenses and improve liquidity.
Such financial strategies are crucial to maintaining a healthy balance sheet and ensuring continued investment in store expansion and technology.
Financial Risks and Liabilities
While Planet Fitness has enjoyed considerable financial success, it also carries a significant amount of long-term debt, totaling $2.16 billion as of June 2024.
Additionally, the company faces lease liabilities of $401.4 million.
Despite these liabilities, the company remains committed to delivering value to shareholders through strategic debt management and maintaining healthy cash reserves.
FAQs About Planet Fitness
How does Planet Fitness generate revenue from its franchises?
It earns a substantial portion of its revenue through franchise fees, royalties, and National Advertising Fund contributions. In Q2 2024, the franchise segment generated $107.8 million in revenue, supported by both new and existing franchisees.
What are Planet Fitness’s main sources of revenue?
The company’s primary revenue streams include franchise royalties, corporate-owned store sales, equipment sales to franchisees, and advertising contributions from its National Advertising Fund. In Q2 2024, these streams collectively brought in $300.9 million.
How many members does Planet Fitness have in 2024?
As of June 2024, it reported having 19.7 million members, a figure that reflects the company’s success in attracting a wide customer base with its low-cost subscription model.
What are Planet Fitness’s recent financial highlights?
In Q2 2024, the company reported $48.6 million in net income and $127.5 million in adjusted EBITDA. Additionally, the company executed a $280 million share repurchase program.
How many stores does Planet Fitness operate worldwide?
As of June 2024, it operates 2,617 stores, spanning across all 50 states in the U.S., Canada, Puerto Rico, Mexico, Panama, and Australia.
Conclusion
I hope you found this deep dive into Planet Fitness’s financial performance insightful.
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