3 Things to Know About Planet Fitness Stock Before You Buy

By Neil Patel – Mar 9, 2026 at 1:00PM ESTKey PointsPlanet Fitness has significantly expanded its store footprint, with no plans to let up.Operating a franchise business model should theoretically lift profits at a faster rate than revenue.This stock doesn’t trade at a cheap valuation, so investors will have to decide if it’s worth the price.When it comes to the health and wellness industry, Peloton Interactive seems to have gotten most of the attention over the past several years. There's a better business that investors should look at if they want exposure to this market, though.

Consider Planet Fitness (PLNT 2.21%), mainly because it has solid fundamentals. The fitness club operator's shares have been very volatile, and they trade 29% below their peak (as of March 4). If you think this is a possible buy-the-dip investment candidate, take the time to learn these three things first. Image source: Getty Images. 1. Expanding the physical footprint Growth has been the key factor driving this business. A decade ago, at the end of 2015, there were 1,124 Planet Fitness locations. As of Dec. 31, 2025, there were 2,896 clubs in total, with a small presence in Canada, Panama, Mexico, Australia, and Spain. The leadership team believes that there's potential for 5,000 in the U.S. over the long term. Planet Fitness now has 20.8 million members, a massive figure that makes it one of the largest such chains in the world. Despite a choppy macroeconomic environment, the customer base is significantly larger than it was five years ago. Even though it increased the base membership's monthly fee from $10 to $15 in 2024, Planet Fitness still maintains its "high-value, low-price" positioning. But getting more people to upgrade to the $25.99-per-month Black Card, which comes with added perks, is lucrative. The current penetration rate is near 67%. 2. Copying the fast-food playbook Large fast-food enterprises are known for adopting franchise business models. Planet Fitness operates the same way. It's worth noting that just 10% of its locations are actually owned by the company. This setup allows the business to scale up in a more efficient and capital-light manner, reducing the need for large investments. There is robust demand to open Planet Fitness gyms, as signed agreements are in place to open 750 new clubs. Newer locations are growing their sales volumes at a faster clip. Planet Fitness' earnings per share are expected to rise by 60% between 2025 and 2028, better than the 34% projected revenue gain. This highlights the profit potential of the franchise system. ExpandNYSE: PLNTPlanet FitnessToday's Change(-2.21%) $-1.74Current Price$76.92Key Data PointsMarket Cap$6.3BDay's Range$75.34 - $78.1852wk Range$75.34 - $114.47Volume1.3MAvg Vol1.8MGross Margin40.17% 3. Paying up for fitness exposure Planet Fitness continues to report healthy revenue gains. And it's consistently profitable. That makes this a higher-quality business than Peloton. However, the valuation isn't at a bargain level. Investors who want exposure to this industry must be willing to pay a price-to-earnings ratio of 30.9. Armed with more knowledge about this company, investors have to figure out for themselves if this is an attractive entry point.Read NextDec 26, 2025 •By Will HealyYiheng Capital Dumps 270,000 Planet Fitness Shares Worth $29.4 MillionSep 18, 2025 •By Neil PatelUp 25% in 1 Year, Is This the Ultimate Growth Stock to Buy With $1,000 Right Now?Mar 2, 2025 •By Neil PatelThis Growth Stock Is Up 42% in the Past Year.

Should You Buy It With $1,000 Right Now?Feb 25, 2025 •By Motley Fool TranscribingPlanet Fitness (PLNT) Q4 2024 Earnings Call TranscriptDec 13, 2024 •By Neil Patel3 Facts About Planet Fitness You Must Know Before Buying the StockNov 25, 2024 •By Neil Patel1 Unstoppable Stock That's Up 55% in 1 Year. Is It a No-Brainer Buying Opportunity?About the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelStocks MentionedPlanet FitnessNYSE: PLNT$76.95(-2.17%)-$1.71*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.