I looked into Planet Fitness because of one of those occasional flashes of insight that I get. Those flashes are sometimes brilliant, like buying Sysco Corporation (SYY) at the height of the 2007 depression because I thought that people working more would eat out more because they had less time to cook (I also bought MCD at that time, and I wish I had bet the farm on it then).
The problem with my flashes is that they are based on the real world, which is not how the market always works. Case in point is Planet Fitness. It occured to me that inflation is going to be hitting gym memberships soon. My theory is that because most gyms cost more than PF, PF should easily be able to raise fees 10 – 20% (premium and regular memberships, respectively) where their competition raising rates even 5% could drive those members to PF (especially the ones that pay the membership fee and don’t even remember where the gym is located anymore).
Then I looked at the stocks history and noticed it has pretty much just bounced along with the general mark so far. With no dividend, I think that I might as well just stick the money in a good index fund rather than gamble that The Street will come to agree with me at some point.