Shares of Planet Fitness (PLNT) have struggled in 2023, plummeting over 32% year-to-date amid concerns that its growth trajectory may be flattening. While the company reported a 10.5% revenue increase in Q4, its comparable club sales growth decelerated to 5.7%, down from 6.7% for the full year. This slowdown raises questions about the sustainability of its expansion strategy, especially as competition in the low-cost gym sector intensifies.
Despite these challenges, Planet Fitness continues to open new locations, with 181 clubs added in 2025, and is leveraging pricing power, particularly with its Black Card membership. The company’s international expansion efforts also show promise, but the stock’s current valuation at approximately 28 times earnings suggests it may not be an attractive buy at this time.
Investors should consider keeping Planet Fitness on their watchlists, as the stock appears fairly priced given its recent performance and competitive landscape. A more favorable entry point may emerge if growth trends stabilize or improve.
Source: fool.com