More than 20% of the health clubs and gyms in the nation closed during the pandemic, which has made Planet Fitness (PLNT) - Get Planet Fitness, Inc. Class A Report, stock more valuable than ever, CEO Chris Rondeau,told Jim Cramer on a recent episode of the Mad Money TV show.
But the pandemic was tough for Planet Fitness too. The company saw its gyms shuttered and its customers return slowly when lockdowns ended.
Rondeau told Cramer the economy is reopening, people are finally choosing in-person fitness again. Planet Fitness recently posted its best earnings in two years. That sent shares up more than 10% to new all-time highs. Membership is back to 15 million, now approaching the pre-pandemic high of 15.5 million, Rondeau told Cramer.
On Real Money, Bruce Kamich recently offered cautionary analysis of the Planet Fitness charts. Even as the stock has hit new highs in recent weeks, the year-long decline in the on-balance-volume line is “not a confidence builder,” Kamich wrote.
Rondeau told Cramer that nearly 80% of the population doesn't have a gym membership, yet 70% of U.S. adults are overweight or obese, Rondeau noted.
Working out and staying in shape relieves stress and anxiety, he said, which is why Planet Fitness aims to make fitness accessible for everyone, especially beginners.
Rondeau was a college student in 1993 when he took the front desk job at the first Planet Fitness in Dover, New Hampshire. He became CEO in 2013. In 2015, Planet Fitness became a publicly traded company on the New York Stock Exchange, the same year it opened its 1,000th club. In 2019, the 2000th club opened in Colorado Springs.