Planet Fitness: Accelerating Unit Growth and Franchise Demand Underpin Buy Rating Despite Near-Term Q4 Concerns

In a report released yesterday, Brian McNamara from Canaccord Genuity maintained a Buy rating on Planet Fitness, with a price target of $139.00.

Brian McNamara has given his Buy rating due to a combination of factors that, in his view, support continued growth and value creation at Planet Fitness. He highlights that membership has expanded to roughly 20.8 million, and while this was modestly below his forecast, system-wide same-store sales for the full year still rose solidly in the mid‑single digits. Club expansion remains robust, with Planet Fitness exiting the year with 2,896 locations, ahead of both his estimate and consensus, and equipment placements into new franchised gyms underscore continued franchise demand despite a slight deceleration in Q4 trends. McNamara also notes that management is focused on enhancing the member experience—such as adding more strength equipment and successfully scaling programs like the High School Summer Pass—along with strategic changes to advertising fund allocations that should support brand awareness and traffic over time.
Looking forward, McNamara views the accelerating unit growth trajectory as a key driver for the Buy rating. After several years of post‑pandemic normalization, net new club openings are increasing again, and management’s guidance to approach or exceed 200 annual openings from 2026 through 2028 suggests a return toward pre‑COVID expansion levels. He also points to improving real estate conditions, a more flexible club prototype, and strong corporate support around site selection and lease negotiations as structural advantages that should help franchisees achieve attractive returns. Additionally, a 28% increase in the development pipeline following adjustments to area development agreements reinforces his confidence that Planet Fitness can sustain a multi‑year growth runway, supporting his positive stance on the shares despite near‑term market disappointment around Q4.

According to TipRanks, McNamara is a 2-star analyst with an average return of 0.6% and a 52.19% success rate. McNamara covers the Consumer Cyclical sector, focusing on stocks such as Rollins, SharkNinja, Inc., and Planet Fitness.

In another report released today, Raymond James also maintained a Buy rating on the stock with a $127.00 price target.