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Research – Investor’s Business Daily
A Planet Fitness gym in New York. The franchise says it has gained patrons by losing what it calls a "lunky" attitude. (Bloomberg)
Planet Fitness (PLNT) has bulked up since its August 2015 initial public offering, thanks to a $10 per month fee, along with a catchy slogan that promises members a judgment-free setting with what it likes to call "no gymtimidation."
It's a formula that seems to be working, as the chain boasts more than 8.7 million members and 1,200 facilities as of the third quarter.
Macquarie analyst Matthew Brooks calls Planet Fitness the Domino's Pizza (DPZ) of gyms, lamenting that he doesn't own a franchise in a Jan. 10 research report.Buy like you would a pizza franchise, he suggests.
"The biggest pushback on Planet Fitness is the gym business 'sucks,'" he wrote. "We get the comments from investors with experience but who are basing their comments more on what other listed gyms have done and not after going through the Planet Fitness model."
And therein lies the difference: "Planet Fitness is not a gym," Brooks said.
It's a franchise with 1,242 facilities as of Sept. 30, the day Planet Fitness wrapped up its third quarter.The number of facilities grew 22% year-over-year during that three-month period with membership running up 21%.
Brooks says there is "clear evidence" the Planet Fitness model works. Low costplus a judgment-free environment equals share gain.
Investors seem to agree. Planet Fitness stock finished 2016 up 44% and shares have climbednearly 7% year-to-date. Shares have been creating a flat base with a 22.17 entry point since mid-November. The stock inched down 2 cents Friday to 21.49.
To that end, Planet Fitness stock has easily outperformed Investor's Business Daily's 31-company Leisure-Services industry group which ended 2016 up 4.4%. Shares for the group are up nearly 6% since New Year's Day. The group includes the likes of Carnival (CCL), Royal Caribbean Cruises (RCL) and Six Flags Entertainment (SIX).
But there is only one other gym in the group, Town Sports International (CLUB), which owns New York Sports Club and Boston Sports Club. Town Sports's $76 million market cap pales in comparison with Planet Fitness' $1.1 billion. Town Sports shares are up 14% for the year, but that's partly because the stock is tradingbelow 3.
Planet Fitness was established in 1992 when former Chief Executive Michael Grondahl acquired a struggling gym and reduced prices to compete with bigger box gyms, according to Entrepreneur.com. Grondahl grew the business by focusing on first-time gym patrons.
"It doesn't matter if your legs have never seen a squat machine before," according to Planet Fitness' website. "We believe no one should ever feel Gymtimidated by Lunky behavior and that everyone should feel at ease in our gyms, no matter what his or her workout goals are."
Grondahl stepped down in 2013 after most of Planet Fitness was sold to investment firm TSG Consumer Partners. Chris Rondeau, a 20-year veteran of the company, was named CEO. TSG sold 4 million shares during the company's IPO in 2015 and held several major sales last year.
As of November, records show TSG holds 31.3% of the stock.
It has been Rondeau who maintained Planet Fitness' "no gymtimidation" standard and $10 monthly fee amid its far-reaching expansion.
Jefferies analystRandal Konik is bullish that Planet Fitness can expand to 4,000 U.S. stores and sees "strong potential for other areas of growth."Planet Fitness management has said it's now looking at expanding in Europe and South America where it will likely have to license the business.
On the third-quarter conference call with analysts, Rondeau said competitors are struggling to match Planet Fitness. Rivals who encroached on Planet Fitness' turf five years ago with 10-20 stores are now "looking for a way out because they just can't compete with us in our space."
IBD'S TAKE: Analysts are calling for newbie IPO Planet Fitness to deliver 216% earnings growth in the fourth quarter when the company issues its quarterly report in March. But Planet Fitness isn't alone in major stock and earnings performance following its IPO. Check out IBD Stock Analysis for other big ideas.
Konik noted as much in a Jan. 10 report. No rival seems able to keep up with Planet Fitness' vigorous expansion. With more than 1,000 facilities already committed to be built by franchisees, competitors are left lagging, he wrote.
"Planet Fitness' scale, reach, size and value are proving impossible to replicate and the moat widens with each new mound of dirt that is moved to build a new unit in the solar system," he wrote. "The competition just can't keep up."
On a year-over-year basis, Planet Fitness' sales grew 38.5% to $87.01 million in third quarter, and 16 cents earnings per share minus items was up 60%.But that was the first period those metrics could be measured vs. the year before. Sequentially, sales and earnings per share haven't been as smooth, with both dipping in the third quarter and the first.
Still, Guggenheim analyst John Heinbockel is encouraged by Planet Fitness' ability to generate free cash flow.In November, Planet Fitness used $150 million on adjusted earnings and $17 million on capital expenditures to give shareholders a $275 million special dividend.
By mid-2018, Planet Fitness should be a similar position to return some cash to shareholders, Heinbockel wrote in a Dec. 30 report. He rates Planet Fitness stock with a buy and has a 24 price target. He expects Planet Fitness to smartly leverage its $40 million ad fund, which is growing 20% annually.
The monthly fee remains a predictable $10, but Planet Fitness could bump its annual fee above $39 after all, it was once $29, Macquarie's Brooks wrote. Still, the company is likely to keep members coming in with monthly pizza nights, bagel mornings and Tootsie Rolls on demand.
If that's not enough, the laid-back attitude might be. Heinbockel notes a new ad campaign likely to resonate well after a particularly divisive presidential election. The ad, combined with a compelling $1 joining fee in January, likely boosted first-quarter sales, he said.
The new slogan?"The world judges. We don't. At Planet Fitness, be free."
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Research - Investor's Business Daily
New Services for Travelers, From Fitness to Food – New York Times
New York Times | New Services for Travelers, From Fitness to Food New York Times Roam was founded by two friends and fitness enthusiasts, Cynthia Sandall and Ty Manegold, who wanted to find a way to stick to their exercise routines while traveling. The Baltimore airport location, which is open from 5 a.m. to 10 p.m., is about 1,100 ... |
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New Services for Travelers, From Fitness to Food - New York Times
New White Bear Lake Hy-Vee will have a fitness center – TwinCities.com-Pioneer Press
Would you like yoga with your yogurt? Push-ups with your pork chops? How about chicken with your chin-ups?
Hy-Vee, the Des Moines-based supermarket chain, is planning to build a fitness center as part of its new store in White Bear Lake. It is believed to be the first supermarket in the state that will allow you to buy and burn calories in one convenient location.
Thats what the cupholders on the NordicTracks are for to hold your ice cream, joked Anne Kane, who is the community development director for White Bear Lake.
The Hy-Vee chain has one other store with a fitness center, according to company spokeswoman Tara Deering-Hansen.
But that center was added onto a store in Des Moines when space in a strip mall became available. The White Bear Lake store will be the first to have the center integrated in the original plans.
The shopping area of the store will have about 59,000 square feet. Inside will be an additional 10,000-square-foot mezzanine level, and half of that space would be for the fitness center.
At first, development director Kane thought the fitness center would be an odd fit for the supermarket. When I first saw that, I went: What? she said.
But now she sees how in-store exercise complements Hy-Vees goals for its customers. They said this is in keeping with their mission of healthy eating and healthy living, Kane said.
The store will be built northwest of Interstate 35E and Ramsey County 96, in the citys Tower Crossing development. It was approved by the citys planning commission, and approval by the city council is expected.
Hy-Vee plans to break ground on the store this spring and complete the project in 2018.
Spokeswoman Deering-Hansen said details of the fitness center havent been settled.
Its not known if the center would be for members only or would be open to anyone. She said Hy-Vee also hasnt decided what will bein the center such as hot tubs, locker rooms or studios for classes.
The White Bear Lake opening will be part of Hy-Vees aggressive expansion into the Twin Cities market.Ithas recently opened stores in New Hope, Oakdale, Lakeville, Brooklyn Park and Eagan.
A store in Savage will open Feb. 21, and others are planned for Cottage Grove, Farmington, Columbia Heights, Shakopee, Chaska and Robbinsdale. Two are planned for Maple Grove.
The Cottage Grove and Columbia Heights stores will be on former Rainbow Foods properties, and the Robbinsdale store will be at the site of the demolished Terrace Theatre.
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New White Bear Lake Hy-Vee will have a fitness center - TwinCities.com-Pioneer Press
These Women Re-Created Fitness Covers And They Came To Slay – BuzzFeed News
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Fitness app Strava will run on Android Wear 2.0 watches, minus the phone – The Verge
Popular cycling and running app Strava will run independently on Googles newest smartwatch operating system, Android Wear 2.0, the company said. This means that Android smartwatch wearers will be able to run the Strava app directly on the watch without having to carry their phones, provided that the watch has the right sensor set.
The update comes just a day after Googles newest smartwatches, made in conjunction with LG, went on sale. (The Verges full review can be found here.) The two new smartwatches are said to improve on the fitness-tracking features that were present in earlier Android Wear smartwatches especially the $349 Watch Sport, which has built-in GPS and LTE capabilities. The watch defaults to Googles own fitness-tracking app for most activities, but now Strava is an option as well.
Strava works on other smartwatches, too, but usually requires the phone
Strava has worked as a wearable app or "applet" on earlier smartwatch models, but in almost all instances users would have to carry their smartphones too, since Strava is dependent on GPS. Its also worth noting that Strava is coming to Android Wear 2.0 before its fully optimized for Apple Watch Series 2; the company says an updated version of the app for Apple Watch is coming sometime in "early 2017."
Strava is a San Francisco-based app-maker that over the past has gained a kind of cult following among competitive athletes (or those who fancy themselves athletes) over the past several years, though its unclear exactly how many users the app has at this point. Its one of the few popular health and fitness apps that has remained independent in recent years, as competitors like RunKeeper, Runtastic, and MapMyRun have all been acquired by large apparel makers.
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Fitness app Strava will run on Android Wear 2.0 watches, minus the phone - The Verge
Can 3D body scanners help with weight loss, fitness? – CBS News
If you want to lose weightand get into shape, some gyms are now offering high-tech, 3D body scanners to help you track your progress.
A few months ago, musical theater actress Sarah Loman came to TMPL gym in New York City to see if a new approach could help.
Shes struggled with her weight and wants to make major changes to her body. Im in a career path where its all about how you look, she told CBS News.
TMPL and dozens of other high-end fitness centers around the country are now offering this 3D scanning technology. A special camera takes hundreds of body measurements from how much muscle you have to where youre storing more fat. The scanner then creates a 3D computer model of its subject in less than minute.
CBS News
The technology was first used in the world of fashion, so tailors could get precise measurements.
Clients at TMPL gym also fill out an extensive health survey.
That informs us as to how to exercise, eat, possibly supplements to correct whatever is going on with the metabolism so we can make changes in that body composition, said gym owner David Barton.
The computer-generated images can be compared over time to show exactly how a persons physique is changing.
The noticeable progress helps keep Loman motivated. You see the number on the scale, but the number on the scale doesnt break down how much of that is muscle, how much of that is water weight, how much of that is body fat, she said.
In about four months of dieting and exercise, she lost 30 pounds and gained three pounds of muscle.
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Can 3D body scanners help with weight loss, fitness? - CBS News
Planet Fitness announces opening plans – Herald-Banner
A new exercise facility is scheduled to open in Greenville in about three weeks.
Officials with Planet Fitness have announced the 17,000 square foot facility will be opening soon in the Town South Shopping Center, inside the former Hastings store at 5101 Wesley Street.
While work continued Wednesday on renovations to the location, the company has opened a temporary site a few doors down where people can sign up for memberships to the center. Planet Fitness is also hiring employees for the Greenville center.
A representative with the company who was working in the office said the plan is to have the center open by the end of this month.
Greenville is the perfect place to be opening our newest Planet Fitness club, Trey Owen, CEO of United PF Partners, a Planet Fitness Franchisee Group that currently operates 65 locations across nine states, said in a statement issued Tuesday. Were very excited to not only bring residents the most state-of-the-art fitness equipment in the area, but also an unbeatable value with memberships at only $10 a month,
The announcement indicated the new club will feature a wide variety of equipment, including treadmills, ellipticals, arc trainers and stationary bikes; 70-inch televisions, a 30-minute PF Express circuit room, full locker rooms that include free day-use lockers, private changing rooms and tile showers.
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Planet Fitness announces opening plans - Herald-Banner
Embracing Strength Training Helped This Woman Reach Her Fitness Goals – SELF
When Australian fitness Instagrammer @ah.fitty swapped her regular cardio workout for a workout regimen focused on strength training , she didn't expect it to make much of a differencebut it did. The Instagrammer has documented her journey since introducing body-weight and added-weight strength moves to her routine, and it's warranted multiple before-and-after photos on her page. The pics show how her body has gotten strongerand more tonedthrough her strength workouts. And it's got ah.fitty feeling better than ever.
"I love the change that has occurred and never ever thought my body could look like this through lifting," she wrote on one Instagram before-and-after. "Don't be afraid of weights!"
Of course, every person is different, and we don't know this Instagrammer's exact workout regimen as well as other factors, like diet, that might be playing a role in her progress. But Cris Dobrosielski, C.S.C.S., C.P.T., spokesman for the American Council on Exercise and founder of Monumental Results , tells SELF it's not surprising she would see changes after swapping her regular cardio workouts for strength training.
His reasoning (in simple terms): When your fitness routine is mostly steady-state cardio (i.e., workouts like running or biking lasting longer than 20 minutes), you work the same muscles over and over. Over time, those muscles start to become efficient at that workout, and you start to see less of a response from your body, meaning fewer visible changes in your muscle tone and less calorie burn. "When youre doing steady or long-slow aerobic activity, you start to see a flatness to the muscle because of the volume of time spent [working the body] at submaximal effort," Dobrosielski says.
Strength training changes the stress on the body: new movements, plus the added "external load," i.e., weights. Dobrosielski says it can "wake up" parts of your body that you havent been working. "Throw in a set of squats or kettlebell swings or overhead shoulder presses, and if you havent been doing that, theres an immediate challenge to the body," he says. "Even with moderate and light weight training, theres an observable response."
Over time, regular strength training will help you build lean muscle mass. Since muscle requires more energy to sustain than fat, this ultimately helps your body burn more calories at rest. And if you continue to increase your weights as you build strength and endurance, you should keep seeing results. (Pssstwe have a guide to picking the right weights for strength training here !)
Based on her Instagrams, it looks like ah.fitty 's strength training includes body-weight moves, as well as dumbbell moves and some straight-up weight lifting. Having added-weight moves in her workouts is key, Dobrosielski says. "Shes adding an external load greater than her body weight to particular joints in her body, and those joints respond because they havent been asked to do that before," he says. "They respond in a way that burns more calories, changes her metabolism, and creates some change in her muscle mass even if it's small."
As for ah.fitty's fear that she'd bulk up from lifting weights, Dobrosielski says that's a common myth. "Weight training is synonymous with bodybuilding, and thats not true," he says. "If you pick exercises that are safe and do a low to moderate amount of volumeso youre not doing a thousand lunges but sets of four or sets of sixwhat youre going to develop is some lean muscle mass but also confidence and strength."
Bottom line: Strength training can lead to the results ah.fitty saw. But Dobrosielski doesn't advise ditching cardio altogether. Cardio has benefits , too, like improving heart health, burning calories, and helping you build endurance . He recommends trying a high intensity interval training (HIIT) workout that includes strength trainingwhether that's body-weight moves or added-weight movesas well as cardio intervals. "You get this combination of strength and endurance," he says. "You get all of the cardiovascular benefits through intervals on the treadmill, and you get stronger shoulders and back muscles, too."
Check out one of our favorite equipment-free HIIT workouts here . And for more workouts (including strength training!), head over to our workout finder .
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Embracing Strength Training Helped This Woman Reach Her Fitness Goals - SELF
Cornershot: Fitness routine put through the wringer – Roanoke Times
Thanks to my wifes wearable fitness/exercise recording thingy, and social media, she is hooked on exercise goals. I bought a wearable device to record my walking steps to keep track of my own attempts to stay physically fit and in semi-solidarity with my spouse.
So when she called me from work and told me she had forgotten to wear her exercise tracker, I knew what was coming next. She asked me to wear it for her giving me the impossible task of putting good numbers on it. So I did what I thought was better than walking on our treadmill and having my heart explode trying to approach her goal.
When she arrived home from work, I handed her the tracker. Her daily goal was at least 10,000 walking steps. Her eyes widened when she saw 14,312 steps recorded. She asked how I attained those numbers; I didnt answer.
During the next few days, it became obvious that her electronic motivator was displaying bogus data. My better than walking idea had damaged it. To make things right, I bought her a new, improved walk-until-you-drop tracker.
My scheme had been to rack up steps by putting my wifes device, (well-padded) into our clothes dryer on Air Dry. It provided her with an all-time exercise record and mostly ended her fitness trackers life. Please do not try this at home.
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Cornershot: Fitness routine put through the wringer - Roanoke Times
Cigarette smokers inhale more cancer-causing chemicals than vapers do – Men’s Fitness
Men's Fitness | Cigarette smokers inhale more cancer-causing chemicals than vapers do Men's Fitness Get Men's Fitness Daily Newsletters. Get the Magazine. Subscribe to Men's Fitness and get up to 80% OFF the newsstand price! Get the Magazine. Read more... Get the App. Get the custom digital edition for your iPad or iPhone now! Get the App. Read more. |
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Cigarette smokers inhale more cancer-causing chemicals than vapers do - Men's Fitness