Planet Fitness named among 100 fastest-growing companies
Planet Health has been included within the Fortune journal checklist of the 100 quickest rising corporations, the primary New Hampshire agency in not less than 5 years to make the checklist.
The Hampton-based nationwide health franchisor ranked 58, becoming a member of well-known names equivalent to Fb, Amazon and Netflix. In truth, in terms of whole efficiency, Planet health beat all three, reaching quantity eight with 63%.
Planet Health has been rising quickly because it began as a single health club in Dover in 1992. It was made public in 2015, when it had 7.1 million members and 976 shops. On the time of its final quarterly presentation earlier this month, it had doubled each numbers: 1,859 shops and 14 million members. And the corporate expects to open a document of 250 to 260 new location techniques in 2019.
CEO Chris Rondeau stated the Fortune designation comes throughout a 12 months through which "extra Planet Health areas have been opened in the course of the first six months than in every other 12 months in our historical past.
Planet Health, nevertheless, was not on the prime of the checklist in all classes. Its earnings progress of 20% in three years was within the final place, however it was proper within the center (53) with a progress of earnings per share of 43%.
Just lately, Planet Health ranked sixth within the Forbes 2019 checklist of the "Finest US franchises", ninth within the Entrepreneur 2019 quickest rising franchise checklist and seventh within the Entrepreneur 2019 500 franchise checklist.
There’s concern that the speedy progress of the corporate could possibly be pushed by an excessive amount of debt. Zacks Fairness Analysis, for instance, stated the corporate has $ 330 million in money and money equivalents, however its whole long-term debt, web of present maturities, is greater than $ 1.2 billion.
"The corporate might not finance the subsequent initiatives as a result of a larger debt burden," Zacks analyst wrote. "As well as, any recession in macroeconomic and credit score market circumstances would make it tough for Planet Health to pay or refinance its debt sooner or later."
Apparently, traders are additionally cautious. After the corporate peaked at $ 80 per share in mid-June, it’s now buying and selling within the excessive vary of $ 60.