Planet Fitness Inc . (NYSE:PLNT) stock soared to a 52-week high, reaching $79.15, as the company continues to flex its market presence. This peak comes amidst a robust year for the fitness chain, which has seen its stock value surge by 28.51% over the past year. Investors are responding positively to the company's expansion strategy and its resilience in a competitive industry. The 52-week high milestone underscores the growing confidence in Planet Fitness's business model and its ability to attract a loyal customer base committed to health and wellness.
In other recent news, Planet Fitness showcased a robust Q2 performance with a 4.2% increase in same-store sales and an expansion to over 2,600 stores. The company's adjusted EBITDA rose by 7.2%, and it returned over $1.3 billion to shareholders through share repurchases. This performance prompted DA Davidson to raise its price target for Planet Fitness from $62.00 to $70.00, maintaining a neutral rating.
The fitness chain confirmed its alignment with its 2024 financial guidance, leading DA Davidson to increase its second-half 2024 earnings per share estimate by $0.05. This revision is based on anticipated revenue growth driven by stronger same-store sales. The firm also expects Planet Fitness's new store openings for 2024 to be at the lower end of the company's projected range of 140 to 150.
The appointment of a new CEO influenced DA Davidson's decision to increase the target price-to-earnings ratio for Planet Fitness to 24 times, up from 22 times. This new ratio is applied to the anticipated 2025 earnings per share of $2.90. The company also announced the refinancing of its debt from $600 million to $800 million, capitalizing on favorable rates.
CEO Colleen Keating unveiled a new growth model aimed at enhancing store returns and underscored the importance of franchisee profit. The company also plans to hire a Chief Development Officer and a Chief Marketing Officer to support growth. These are some of the recent developments in Planet Fitness's strategic planning and operations.
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