“There is a dislocation in the fitness industry with approximately 22% of U.S. gyms permanently closed due to the pandemic. We believe Planet Fitness is the place that fills that gap with our affordable, non-intimidating workout environment. We are confident in achieving and possibly exceeding our long-term target of 4,000 locations in the U.S.” — CEO Chris Rondeau

a. Demand

**As of the end of July, Planet Fitness had re-surpassed 15 million members with 98% of its stores now open globally vs. 100% sequentially. Planet Fitness has now seen 6 straight months of net member growth. 75% of Planet Fitness members who left due to the pandemic have returned. Normally, Planet Fitness sees strong membership growth from January-April and then no growth for the rest of the year. This year, growth has continued into the summer.

The company now has 2,170 stores open. This is up 1.1% sequentially and 16.7% vs. pre-pandemic.

“I have never seen this type of un-seasonal membership growth in my nearly 30 years at Planet Fitness. Some of our larger franchisees are also amazed at the positive trends they’re seeing.” — Rondeau

Importantly, increased promotional activity has not resulting in rising churn.

b. Profitability