The fitness industry has always been an unchanging beast. As a result, it can be difficult for a business to achieve long-term success in space.

Congratulations PelotonWith the advent of popular fitness equipment, the world is slowly reopening and as the epidemic progresses, demand is waning. At one time the hottest product in the industry was extremely cold, and Peloton accumulation decreased 40% in the last month alone

Planet Fitness (NYSE ፡ PL PLNT)However, it has developed a successful strategy in this challenging market. Of Gym stock It grows in a very interesting way.

In the gym, two people run on a treadmill.

Image source: Getty Images

Jumping Your Exercise

In the third quarter, Planet Fitness returned to post 7.2% similar store sales growth. The company’s 2,193 locations have largely reopened, and the business has seen the largest increase in membership in the third quarter of its history.

Interestingly, the key to the company’s success is getting new customers. no I do not Use the gym. In this way, Planet Fitness can still generate significant recurring revenue without affecting capacity and equipment. And the cheapest membership fee is less than $ 10 a month, which reduces the chances of an ordinary gym genius canceling, believing he or she will do better in the future.

“We see 30% to 40% of our members using the club in 30 days,” said Chris Rondew, CEO. Recent incoming calls. Thus, of the more than 15 million fitness members on the planet, approximately 5.3 million currently visit at least once a month. Rondeau Historically 50% of clients use fitness clubs within 30 days. This means that there is a large user base that pays but is rarely seen.

This is in stark contrast to the health insurance model, in which healthy individuals support unhealthy people. It is often a positive sign that customers are actively using the company’s products or services, because greater engagement is considered. But during exercise, people often lose interest or stick to their diet and exercise goals. This works for the benefit of the company.

Raising direction

The administration is very pleased with the quarter-year and the company’s ongoing pandemic and have revised its guidelines. For the full year 2021, Planet Fitness is projected to sell from $ 530 million to $ 540 million, from $ 570 million to $ 580 million. In addition to 2019, this will make the company the highest revenue year 2021.

And Planet Fitness now opens 110 to 120 net new stores a year. “We continue to say we believe we will return to the 200-plus range,” said CFO Dorvin Lively. According to the IHRSA, more than one in five fitness centers is permanently closed due to the epidemic. During this time, no planetary fitness facility has been established, a clear sign of the franchise’s financial strength and commitment to its products.

If we use the last quarter as a guide, Planet Fitness He seems to be continuing his remarkable growth before 2020 and before disrupting the world. Investors need to look at the stock to maximize their portfolio.

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Neil Patel It has no place in the listed shares. Motley Ful owns and advises Peloton Interactive and Planetary Competency. Motley Fool’s Disclosure Policy.

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