How did Planet Fitness manage to boost its operating profit in Q4 2024?

Planet Fitness's Operating Profit Boost in Q4 2024 can be attributed to **Revenue Growth** and **Cost Management**. 1. **Revenue Growth**: Planet Fitness reported a 19.4% increase in total revenue for Q4 2024, reaching $340.5 million. This growth was driven by a 5.5% increase in system-wide same club sales and a 10.3% rise in system-wide sales. The opening of 150 new Planet Fitness clubs also contributed to the revenue growth. 2. **Cost Management**: The company's occupancy cost for Q4 2024 was not provided, but the focus on affordability and a low-cost membership strategy has likely led to efficient cost management. Planet Fitness offers memberships starting at $10 per month, which attracts a wide range of customers and helps in spreading the cost across a larger customer base. 3. **Franchise Model**: The franchise model has been a key to Planet Fitness's expansion and profitability. By franchising clubs, the company can generate revenue from membership fees, franchising agreements, and the sale of fitness equipment to franchisees. This model allows for rapid expansion while maintaining a light asset base. 4. **System-Wide Growth**: The system-wide growth, including the increase in membership and sales, indicates a strong demand for Planet Fitness's services. This, in turn, leads to higher revenue and potentially higher operating profit margins. In conclusion, Planet Fitness's operating profit boost in Q4 2024 can be attributed to strategic revenue growth and effective cost management, particularly through its unique business model and franchise strategy.