Planet Fitness Q4 2024: Key Contradictions in Membership Trends, Franchisee Support, and Growth Strategies

These are the key contradictions discussed in Planet Fitness's latest 2024 Q4 earnings call, specifically including: Black Card Penetration and Consumer Behavior, Franchisee Support and Economic Model, Unit Growth and Development Strategy, Member Experience and Churn Management, and Member Growth and Churn Expectations:



Revenue and Membership Growth:
- Planet Fitness reported revenue of $340.5 million for the fourth quarter, up 11% from the previous year, driven by increases in franchise and corporate-owned club segments.
- Membership grew by 1 million members in 2024, reaching 19.7 million.
- The growth was attributed to strategic initiatives including the classic card price increase, new economic models for club openings, and enhancing club-level returns.

Equipment Sales and Reequips:
- Equipment segment revenue increased by 49.2%, with reequipped sales accounting for 70% of total equipment segment revenue for the year.
- This was driven by club purchases of additional strength equipment and higher sales of replacement equipment.

International Expansion:
- The company expanded into Spain with five clubs and expects to transition to a franchise model in those markets.
- This expansion was supported by using the company's balance sheet to establish a strong market presence before transitioning to franchising.

Strategic Imperatives and New Leadership:
- Colleen Keating highlighted progress on four strategic imperatives: redefining the brand, enhancing member experience, refining product, and optimizing club format.
- The appointment of new leadership in key roles, such as Chief Marketing Officer and Chief Development Officer, is aimed at supporting these initiatives.