-- Planet Fitness (PLNT) faces near-term pressure from weak member growth, marketing changes, elevated churn, paused Black Card pricing, potential franchisee caution, and a lowered outlook, RBC Capital Markets said.
The investment firm said in a Thursday note that Planet Fitness added fewer members than expected in Q1 as marketing failed to resonate with its core customer base, while member trends remained weak through April due to softer demand, competition in select markets and ineffective messaging.
Churn is expected to remain above normal through 2026, partly driven by a higher mix of younger members who typically cancel more often, while competition in select markets is also weighing on performance, RBC said.
The pause in Black Card pricing could weigh on same-store sales expectations for 2026, while franchisees may reassess development plans following the weaker outlook, according to the note.
The investment firm said there is currently no clear line of sight to an improvement in member growth as the company works to adjust its marketing strategy. The brokerage also reiterated its Outperform rating, noting that long-term growth drivers remain intact despite near-term execution challenges.
RBC cut its price target for Planet Fitness to $55 from $85 and kept its outperform rating.
Price: $45.21, Change: $+1.20, Percent Change: +2.72%