Jonathan Selsick
Registered investment advisor, portfolio strategy, hedge fund manager

Planet Fitness - I'd Rather Be Stuck On A Stairmaster For The Next 23 Years

Background

Planet Fitness, Inc. (NYSE: PLNT) is a very complicated and analytically challenging stock to deal with, but I try to uncover the major issues in the space of one article. I explain the business model, the IPO history, the growth story, and then get into the valuation.

Business model summary

The business model consists of a core base of 58 corporate owned stores plus 1,184 franchised units. The company's growth is focused on increasing franchised units, and they have a model in place which allows them to collect revenue from franchisees for a multitude of transactions, including royalty fees on revenue, member billing and processing fees, commissions on supplies or services provided to franchisees from third party vendors,

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