Planet Health CEO flexes on 0 health club closures as pandemic battered business [Video]

It has been a protracted and winding street throughout the pandemic for health club chain big Planet Health, and its efforts to get by to the opposite aspect of the well being mess reveals.

“I’m extraordinarily completely satisfied to say we misplaced no gyms within the pandemic. The business misplaced 22% of the gyms open, closed completely. We misplaced none,” Planet Health CEO Chris Rondeau mentioned on Yahoo Finance Dwell.

Planet Health presently operates 2,254 places within the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia.

The identical resilience cannot be mentioned for the likes of 24 Hour Health and New York Sports activities membership proprietor City Sports activities, which have been compelled to file for chapter. Many smaller boutique gyms — all the craze pre-pandemic — have been compelled to downsize or have vanished.

Rondeau is now stepping on the fuel to plot Planet Health’ post-pandemic life.

The corporate mentioned this week it’ll spend $800 million to accumulate its largest franchisee Sunshine Health. Sunshine will add greater than 100 company-operated places to the Planet Health portfolio, largely within the South.

A buyer wears a face masks as they elevate weights whereas understanding inside a Planet Health Inc. health club as the situation reopens after being closed as a result of Covid-19 pandemic, on March 16, 2021 in Inglewood, California. – Los Angeles County is permitting health facilities and gymnasiums to reopen for indoor exercises at ten p.c capability with clients carrying face masks underneath Covid-19 public well being tips. (Photograph by Patrick T. FALLON / AFP) (Photograph by PATRICK T. FALLON/AFP by way of Getty Photographs)

After the deal closes within the first quarter, Planet Health expects that 10% of its places might be company-operated reasonably than francisee-led.

“These franchisees have been a few of our best-performing within the system,” Rondeau mentioned of the Sunshine deal.

By and huge, the deal bolstered what continues to largely be a bull case for Planet Health shares on Wall Avenue.

“We imagine buyers ought to recognize that Planet Health has 1) a capital-light, low-risk, defensible mannequin with enticing pricing, 2) a big and rising unit presence, 3) an promoting flywheel and increasing affinity community, and 4) enhanced digital methods that cut back friction,” mentioned Jefferies analyst Randal Konik.

Konik charges Planet Health shares at Purchase.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Observe Sozzi on Twitter @BrianSozzi and on LinkedIn.

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