Planet Fitness (NYSE:PLNT) shares jumped after the company's latest financial results showed third-quarter revenue growth of nearly 14% compared to the prior year, reaching $277.6 million.
The gym chain reported an 8.4% rise in system-wide same-store sales and the opening of 26 new Planet Fitness (NYSE:PLNT) stores, increasing the total store count to 2,498.
Net income attributable to Planet Fitness (NYSE:PLNT) improved as a result, surging to $39.1 million from $26.9 million in the prior year, equating to $0.46 per diluted share.
Adjusted net income also increased, reaching $51.8 million, or $0.59 per diluted share, compared to $38.2 million, or $0.42 per diluted share, in the prior year period.
Furthermore, the franchise segment's revenue surged by 21.6% to $98.2 million, the corporate-owned stores segment saw 11.8% growth to $113.2 million, and the equipment segment reported a 6.1% increase to $66.1 million, all in comparison to the prior year.
Looking ahead to the end of 2023, Planet Fitness is forecasting a 14% increase in revenue, an 18% rise in adjusted EBITDA, and 33% growth in adjusted net income. Adjusted earnings per share are also projected to increase by approximately 35%.
The group ended the third quarter with more than 18.5 million members, CEO Craig Benson noted.
“With our industry-leading results, we're adjusting our store-level return model to further improve the attractiveness of opening and operating Planet Fitness stores in a new macro-environment,” the CEO said.
Shares of Planet Fitness surged in Tuesday premarket trading, jumping nearly 12% at $61.75.