Planet Fitness stock rises as Jefferies reiterates Buy on strong comps

Investing.com - Planet Fitness (NYSE:PLNT) stock gained after Jefferies reiterated its Buy rating and $175.00 price target, citing the fitness chain’s reaccelerating same-store sales and expanding margins. The company, currently valued at $8.75 billion, has demonstrated impressive financial health according to InvestingPro data, with revenue growing 10.26% over the last twelve months.

The company reported same-store sales growth of 8.2%, exceeding consensus estimates of 5.9% and marking 16 consecutive quarters of mid-single-digit or higher comparable sales. Jefferies noted that the White Card price increase continues to drive comp performance and should keep sales "stronger for longer."

Total (EPA:TTEF) membership grew approximately 5.6% year-over-year to 20.8 million, with management reporting that the High School Summer Pass program is outpacing last year’s sign-ups. Gen Z remains the fastest-growing membership segment, which Jefferies believes will be a key driver of fitness industry growth.

EBITDA margins expanded by approximately 100 basis points to 43.3%, surpassing consensus estimates of 42.8%, with improvements in both Franchise and Corporate Club margins. The analyst highlighted that reaccelerating comps are driving leverage as the White Card price increase flows through to the bottom line. InvestingPro data shows the company generated $498.34 million in EBITDA over the last twelve months, maintaining impressive gross profit margins of nearly 60%.

Planet Fitness raised its same-store sales guidance to the high end of its previous 5-6% range while maintaining other metrics, which Jefferies views as "beatable" and demonstrating that management "has a great handle on the numbers." With a current ratio of 2.1, the company maintains strong liquidity to support its growth initiatives. Subscribers to InvestingPro can access 12 additional key insights and a comprehensive Pro Research Report that provides deep-dive analysis of Planet Fitness’s financial health and growth prospects.

In other recent news, Planet Fitness Inc . reported its second-quarter 2025 earnings, surpassing analyst expectations for both earnings per share (EPS) and revenue. The company posted an EPS of $0.86, which was above the forecasted $0.79. Additionally, Planet Fitness reported revenue of $340.9 million, exceeding the anticipated $329.56 million. Despite these positive financial results, the stock experienced a decline in pre-market trading. These developments come amid a challenging market environment for many companies. Analyst firms have not yet provided any new upgrades or downgrades following the earnings announcement. Investors will be watching closely for any further updates or reactions from financial analysts. As the company moves forward, stakeholders are likely to focus on how these earnings results impact future performance.

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