Planet Fitness, Inc. (NYSE:PLNT) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 04:30 pm ET


Planet Fitness, Inc. (NYSE:PLNT) Q3 2019 Earnings Conference Call - Final Transcript


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Chris Rondeau

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Our bullish well-capitalized franchisees continue to fuel our expansion efforts in both new and existing markets. With the opportunity to double our domestic store count over time, the U.S. remains our primary growth driver. That said, international markets represent a very attractive opportunity for our brand and fitness, and we are excited this year in development on this front.

Recently, we finalized plans to open our first Planet Fitness store in Australia. Our entry into the Australian market is being led by a partnership between two existing U.S. franchise groups who joined for forces with a local Australian fitness operator who own the trademark of the Planet Fitness name in Australia, and operating seven locations in New South Wales. The initial development agreement secures ownership of the Planet Fitness trademark, and grants the right to convert and remodel several existing locations to our Planet Fitness brand, and build a minimum of 35 new locations in a portion of Australia.

In the third quarter, we see opportunity to alter and test our marketing mix and creative to select markets to measure overall effectiveness. We are pleased with the initial results we will be incorporating to learnings going forward. While our marketing plans in media spend for the remainder of this year are largely committed, which will be implemented into our 2020 marketing plan in order to strengthen our messaging with our core consumer, especially during the important post-New Year's sign-up period, and improve our reach throughout the write-downs of TV, digital and other forms of advertising.

In addition, our internal team and advertising agency have worked closely with our franchisee marketing committee to further share data and insights, enhance national and local marketing synergies, we collaborate on our 2020 marketing plan.

Further, adding to our strength of marketing, I'm excited to announce that Jeremy Tucker will be joining Planet Fitness later this month as our new Chief Marketing Officer. Most recently, Jeremy served as Vice President, Marketing Communications and Media at Nissan North America where he served as Head of U.S. marketing on the executive leadership team. Jeremy brings nearly 20 years of broad marketing experience across large scale global industries including retail, automotive, entertainment, and consumer packaged goods, managing robust marketing budget and teams.

Prior to Nissan, Jeremy held various marketing roles in The Walt Disney Company and PepsiCo. I'm pleased to officially welcome him to Planet Fitness management team. I'm confident that his deep experience will be an asset to our brand and our franchisees, and will enable us to continue to elevate and optimize our national and local marketing efforts.

As part of our future plans, we're gearing up Q1 being the presenting sponsor of Time Square's iconi New Year's Eve celebration for the fifth year in a row. Once again, Planet Fitness will be front and center on a global stage at a time with fitness and health and wellness is top of mind for consumers.

On the marketing sponsorship front, we are excited to