Planet Fitness ended its first quarter with 2,741 gyms worldwide.
The budget-minded gym franchise’s CEO, Colleen Keating, said the company doesn’t expect any material impacts from tariffs as of May 8.
Planet Fitness sales are up again. The brand saw a 6 percent increase year over year in same-store sales in the first quarter ending March 31.
The company ended March with 20.6 million members, an increase of 900,000 or about 4.6 percent, according to the franchise’s first quarter earnings report.
“Given the strength and durability of our model, we delivered this healthy growth against a backdrop of increasing volatility in the macro-economic environment,” Planet Fitness CEO Colleen Keating said on the May 8 investor call.
Planet Fitness named Keating CEO in April 2024. Former CEO Chris Rondeau was ousted in September 2023; he resigned from the company board of directors in February 2024.
Last summer, the company increased its monthly base price to $15 from $10.
With tariffs and a possible recession in mind, Keating noted Planet Fitness’ sales during the Great Recession from 2007 to 2010.
Planet Fitness CEO Colleen Keating joined the company in June 2024.
“We achieved strong same-club sales growth, we grew our membership and opened new clubs,” she said of the time period. “Prior to 2020, we had 53 straight quarters of positive same-club sales growth.”
The Planet Fitness team is working with its vendors to understand the potential impacts of rising tariffs, Keating said.
“We are taking a thoughtful approach, focused on the things we can control,” Keating said.
The company doesn’t expect current tariff rates to have a material impact on its 2025 projections.
Planet Fitness plans to end this year with as many as 170 new gyms and a same-store sales increase of 5 to 6 percent.
System sales this quarter were up about $94.6 million, or 7.8 percent, compared to Q1 of 2024. Planet Fitness ended Q1 with $1.3 billion in sales.
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The company added 19 gyms, 16 of which are franchised, bringing the total to 2,741 gyms worldwide.
The franchise introduced a new marketing campaign “that communicates ‘we are all strong on this planet,’” Keating said. “The campaign improved brand perception across all fitness levels and enhanced the perceived value of a Planet Fitness membership.”
Members visited fewer than seven times each month on average, which Keating said is the highest rate in five years.
Total revenue is up $28.6 million, or 11.5 percent, to $276.7 million and net income is up $7.1 million, or 20 percent, to $42.1 million.
Franchised stores overall saw a revenue increase of $11.2 million, or 10.7 percent, year over year. It ended March with $104 million in revenue. About $6 million of that revenue increase is attributed to higher royalty revenue, $3.6 million comes from same-store sales increases and $1.3 million comes from new clubs opened.
Franchise adjusted EBITDA, or earnings before interest, tax, depreciation and amortization, is up $8.7 million to nearly $85 million.
Last year, Planet Fitness’ same-store sales were up 5 percent. It ended the year with $4.8 billion in system sales, up $300,000 from 2023.
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Total revenue for the year was up more than 10 percent to $1.2 billion.
The cost to to open a Planet Fitness gym ranges from $1.5 million to $3.7 million, according to its franchise disclosure document. If a franchisee purchases the equipment outright, the range increases to about $2.6 million to $5.1 million.
In 2023, average revenue from electronic payments at clubs in the United was $2.6 million for the highest-performing franchised gyms and $1.2 million for the lowest-performing.