During Planet Fitness’ first investor day, the company provided its three-year annual financial targets that call for annual growth in the low- to mid-teens in revenue, high-teens in adjusted EBITDA, and low- to mid-twenties in adjusted earnings per share.
Additional key points shared during the meeting included:
- The company’s potential to double the size of its existing membership based on PF’s historical ability to do so and its proven ability to gain a more significant share of each generational demographic;
- The opportunity for PF to continue to grow its store count and average unit volume past its originally planned unit expectations for the market and management’s view on how that dynamic is nationally replicated;
- The diversity of PF’s membership created by its broad demographic appeal coupled with its size and scale advantage over its competitors;
- Evolving marketing strategies to drive membership growth by reinforcing PFs’ “authentic, judgment-free environment and inspiring first-time gym goers” to start their fitness routines;
- New digital features of its mobile app intended to “deepen the member relationship” and engage members inside and outside of the gym;
- Plans to accelerate international growth; and
- Prioritizing capital allocation and the company’s recently announced $500 million share repurchase authorization.
“We emerged as the clear industry winner coming out of the global pandemic, having entered it from a position of strength at both the franchisor and franchisee levels,” said Chris Rondeau, CEO. “We are excited to announce new growth targets for our business, leveraging the knowledge we’ve built over the last 30 years to capitalize on the greater importance that people are putting on their overall health and wellness. With this Investor Day event, we will lay out our growth strategy that builds on our growing momentum to drive significant store and membership growth that translates into best-in-class franchisee profits enabling us to continue to enhance people’s lives through our high-quality, affordable fitness experience.”
Tom Fitzgerald, CFO, Planet Fitness, said, “Today, we will outline our collective plans and roadmap for achieving significant financial targets and milestones. We are operating from a position of solid financial and balance sheet strength, with tailwinds that support market penetration and strengthen our growth trajectory. We are excited about the opportunity ahead of us, and we firmly believe that the strategy and opportunities we will outline today will create sustainable long-term value for our shareholders and stakeholders.”
Photo courtesy Planet Fitness