With 2017 only a few days away people all over the world will be making their New Year's resolutions, with health and fitness concerns taking the number one spot in people's minds.
Planet Fitness (PLNT) is a franchisor and operator of gym centers in the U.S., and the company is expecting a New Year's boost in new subscribers and current members from the January to April months. Company CEO Chris Rondeau appeared on Thursday morning's "Squawk on the Street" on CNBC to discuss Planet Fitness' expectations for 2017.
"Eighty percent of the U.S. population doesn't have a health club membership," Rondeau said. "So with our affordability and atmosphere, it's just really top of mind coming out of Jan. 1."
One criticism that analysts have about Planet Fitness is whether or not the individual stores have enough space for its high number of members. The fitness company has 8.7 million members with around about 1,000 stores.
"We're open 24 hours a day at most of our stores. So usage is very spread out. They're big stores, they're 20,000 square feet [with] tons of cardio [equipment]. Almost upwards of 100 pieces of cardiovascular equipment, which is mostly what our members are using. [There's] a lot of circuit equipment."
What makes Planet Fitness appealing and allows the individual stores to cater to its large number of members is that people are able to come and go as they please. People aren't coming in for the "big balloon classes," which allows the company to service more customers.