Planet Fitness, Hampton, New Hampshire, reported third quarter 2017 revenue of $97.5 million, a 12.1 percent increase year-over-year, according to financials released Nov. 7. Same store sales also grew 9.3 percent.
In a media release, CEO Chris Rondeau said that the momentum generated during the first half of 2017 has continued, contributing to same store sales growth that "exceeded expectations."
"With the increased brand awareness and reach of our welcoming, non-intimidating fitness offering combined with our asset-light business model that includes our fast-growing, high-margin franchise segment, we continue to expand market share and generate significant profitability and cash flow," Rondeau said.
Thirty-one health clubs opened during the quarter, bringing Planet Fitness’ total to 1,432 clubs as of Sept. 30.
Planet Fitness’ franchise segment revenue grew to $35.6 million (30.6 percent), and its corporate revenue grew to $28.6 million (7.1 percent). The company’s equipment revenue increased 0.8 percent to $33.4 million.
The quarter’s success has elevated the company’s 2017 outlook. Planet Fitness officials now expect between $425 million and $430 million in total revenue, with system-wide same store sales growth of at least 9.5 percent.
"While this year marks Planet Fitness' 25th anniversary, I believe we are just beginning to scratch the surface of the company's full potential," Rondeau said in the release. "My optimism is fueled by the long runway for store growth, the financial and operational strength of our franchisees, our growing national advertising fund and ability to continue to attract casual and first-time gym users to our unique fitness experience, and the growing consumer shift towards health and wellness."
Planet Fitness ranked seventh on Club Industry's Top 100 Health Clubs of 2017, with a 2016 reported revenue of $378.2 million. The company is the highest-ranking franchisor on the list.
In other news, the company's largest franchise, United PF partners, recently acquired two additional club groups.