5. Planet Fitness, Inc. (NYSE:PLNT)
Number of Hedge Fund Holders as of Q4: 41
SRS Investment Management’s Equity Stake: $464.90 Million
Planet Fitness, Inc. (NYSE:PLNT), one of the largest fitness club franchises, reported strong financial results for the fourth quarter of 2024. Total revenue increased by 19.4% year-over-year to $340.5 million, driven by a 5.5% rise in system-wide same-club sales. System-wide sales grew to $1.2 billion from $1.1 billion in the previous year. Net income attributable to Planet Fitness rose to $47.1 million, or $0.56 per diluted share, compared to $35.3 million, or $0.41 per diluted share, in the corresponding quarter of the previous year. Adjusted net income also saw an increase to $59.7 million, or $0.70 per diluted share, while adjusted EBITDA climbed to $130.8 million. The company expanded its footprint with 86 new club openings, bringing the total to 2,722 locations by year-end.
As of December 31, 2024, Planet Fitness, Inc. (NYSE:PLNT) maintained a strong financial position with cash and marketable securities totaling $529.5 million, including cash and equivalents of $293.2 million. The company’s continued expansion efforts were evident, with franchisee-owned clubs accounting for the majority of new openings.
For the fiscal year 2025, Planet Fitness, Inc. (NYSE:PLNT) projects revenue growth of around 10%, supported by system-wide same-club sales growth in the 5% to 6% range. Adjusted EBITDA is also expected to rise by approximately 10%, while adjusted net income is forecasted to increase by 8% to 9%. Additionally, adjusted net income per share is anticipated to grow by 11% to 12%, factoring in expected share repurchases. With a solid financial outlook and a commitment to expansion, Planet Fitness remains well-positioned for continued success in the fitness industry.
As of Q4 2024, SRS Investment Management held more than 4.7 million shares in Planet Fitness, Inc. (NYSE:PLNT), valued at over $464 million. Insider Monkey’s database indicated that 41 hedge funds out of the 1,009 hedge funds held stakes in the company at the end of Q4 2024, with a value of nearly $1.79 billion, as opposed to 34 funds in Q3.
Vulcan Value Partners stated the following regarding Planet Fitness, Inc. (NYSE:PLNT) in its Q2 2024 investor letter:
“Planet Fitness, Inc. (NYSE:PLNT) pioneered the “high value, low price” (HVLP) gym model and operates over 2,500 gyms globally with 18.7 million members. Their straightforward, no-frills approach offers excellent value, appealing to a diverse and casual fitness demographic. Members enjoy a clean environment, regularly updated equipment, and accessible pricing starting at $10 per month, with their premium “Black Card” membership providing extensive benefits and access to all locations. Planet Fitness captured roughly 90% of U.S. gym membership growth from 2011-2019. The company’s dominant scale coupled with high advertising spend drives powerful growth, and the company plans to double its number of U.S. locations. Planet Fitness demonstrates robust same-store sales growth, high EBIT margins, strong returns on capital, and excellent free cash flow conversion.”
