HAMPTON, N.H. - Planet Fitness, Inc. (NYSE:PLNT), a prominent franchisor and operator of fitness centers, has announced the appointment of Jay Stasz as its new Chief Financial Officer, effective November 15, 2024. Stasz, who brings over 25 years of financial experience in retail and consumer businesses, will begin transitioning into his role starting November 4, working alongside current CFO Tom Fitzgerald. Fitzgerald is set to remain with the company until the end of the year to ensure a smooth handover and will stay on as a consultant until March 31, 2025.
Stasz's career includes a significant tenure as CFO at Savers Value Village, where he was pivotal in the company's successful IPO in June 2023. He also played a key role in revenue and profit growth at Ollie's Bargain Outlet during his time as CFO. His earlier experience includes various positions at Sports Authority. Stasz's leadership at Ollie's saw the company's revenue more than double, from approximately $760 million to about $1.8 billion.
Colleen Keating, CEO of Planet Fitness, expressed confidence in Stasz's ability to support the company's strategic goals and enhance shareholder value. Stasz himself is eager to contribute to the company's growth and leverage his experience to support its franchisees.
The fitness brand, which was founded in 1992, has grown to become one of the largest of its kind, with approximately 19.7 million members and 2,617 stores globally as of June 30, 2024. The company prides itself on providing high-quality, accessible fitness experiences in a non-intimidating environment.
Planet Fitness is also set to release its third-quarter earnings report on November 7, 2024. This announcement is based on a press release statement.
In other recent news, Planet Fitness has been receiving considerable attention from various financial firms. TD Cowen has maintained its Buy rating on Planet Fitness shares, expressing continued optimism for the company's medium-term prospects despite anticipated challenges in the earnings report. Stifel, while increasing the company's stock price target to $75.00, expressed caution due to a decrease in new members joining Planet Fitness. Morgan Stanley (NYSE:MS) maintained an Overweight rating on the company's shares, indicating that potential disruptions from hurricanes in Florida are unlikely to significantly impact the company's financial health due to its franchise model. Deutsche Bank (ETR:DBKGn) initiated coverage of Planet Fitness with a Hold rating, expressing caution due to the company's premium valuation. Meanwhile, BofA Securities increased its price target for Planet Fitness to $100, maintaining a Buy rating based on the company's return to pre-pandemic performance levels and anticipated growth of new units. Exane BNP Paribas (OTC:BNPQY) and Baird upgraded their ratings to Outperform, citing the strategic approach of new CEO, Colleen Keating, and the company's robust franchise model. These are recent developments in the financial landscape surrounding Planet Fitness.
InvestingPro Insights
As Planet Fitness (NYSE:PLNT) prepares for a leadership transition in its finance department, recent financial data and market performance offer additional context to the company's position.
According to InvestingPro data, Planet Fitness boasts a market capitalization of $6.83 billion, reflecting its significant presence in the fitness industry. The company's revenue for the last twelve months as of Q2 2024 stood at $1.04 billion, with a revenue growth of 6.85% over the same period. This growth, albeit modest, aligns with the company's expansion efforts and increasing membership base mentioned in the article.
One of the InvestingPro Tips highlights Planet Fitness's impressive gross profit margins. Indeed, the data shows a gross profit margin of 59.89% for the last twelve months as of Q2 2024, indicating strong operational efficiency. This robust profitability metric could be a key factor in attracting top talent like Jay Stasz to the CFO position.
Another relevant InvestingPro Tip notes that Planet Fitness is trading at a high earnings multiple. The company's P/E ratio stands at 43.51, which is considerably above average for the broader market. This high valuation suggests that investors have strong expectations for future growth, possibly influenced by the company's expansion plans and strategic initiatives.
It's worth noting that Planet Fitness has seen a large price uptick over the last six months, with a total return of 33.92% during this period. This positive momentum could provide a favorable backdrop for the incoming CFO as he steps into his new role.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Planet Fitness, providing a deeper dive into the company's financial health and market position.
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