Heard on the Street: The fast-growing gym chain depends on a constant supply of flabby customers and is priced for unit growth that could take a hit in a downturn.
The dad bod “exudes more sexiness and confidence now than ever before.” And if you believe that, we have a highflying gym stock to sell you.
It might seem odd that Planet Fitness sponsored a study reaching such a conclusion, but only until you understand the company’s business model. The “Judgement Free Zone” prefers customers who like the idea of exercise more than actual exercise. Average membership per gym has grown to 7,500. They can hold a fraction of that number. A typical facility hosts only 700 or so workouts a day,...
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