Planet Fitness pricing ‘pilot’ expanding, says Baird

Baird has come across an expansion of Planet Fitness’ pricing “pilot” testing a shift in its no-commitment classic/white card base pricing to $15 per month to a more significant number of locations across multiple states, notes the firm, which believes a pricing increase could help to improve unit economics. However, the firm adds that the prospect of raising the white card entry price that has always been $10 per month “may be met with reservations” from some franchisees and management, making the outcome of the current pilot “still uncertain.” Baird keeps an Outperform rating and $87 price target on Planet Fitness shares.