Planet Fitness (PLNT -1.18%) may seem like it's in a tough spot as the discount gym chain is still struggling with COVID-19-inspired regulations, but the company still has competitive advantages in its industry, and was better able to survive the crisis than smaller, independent gym operators.
In this segment of Motley Fool Live recorded on Oct. 7, Fool contributor Jon Quast explains why Planet Fitness is still a good bet to beat the market over the next five years.
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Jon Quast: Why it can beat the market over the next five years? It is aiming for 4,000 locations in the US. Almost 2,200 now, that's nearly a doubling of locations over the long term. They have many of those agreements already in place with franchisees. Franchisees are very anxious to develop because they're very profitable businesses. As you can see, the franchisees are in good financial shape considering that none of them closed. None of them went bankrupt because of the COVID-19 pandemic. There's only 15 million members today. Forty percent of new members are first-time gym-goers. I think that they can grow that membership base significantly over time. Internationally, expansion is on tap and they're actively positioning themselves in fitness trends. I know that people are thinking about Peloton and their place in this. Can you guys see my web browser here?
I will say that this company has partnered with a company called iFit, they have their own app. They've also partner with a company called iFit. iFit is a Peloton competitor. They are putting together a bundle where for $50 a month you get access to Planet Fitness's gyms, access to the app, and your own piece of iFit connected hardware in your home. That is keeping in front of the fitness trends while still maintaining the gym presence. I really liked that from Planet Fitness.
