Burn and churn at Planet Fitness?

Planet Fitness (NYSE:PLNT) is down 2.85% in early trading after The Wall Street Journal warns that the company must come down to Earth.

“The fast-growing gym chain depends on a constant supply of flabby customers and is priced for unit growth that could take a hit in a downturn,” sums up the WSJ take.

The article notes that some estimates put Planet Fitness’ churn rate at over 25% in the first five months. The company has disclosed a attrition rate of 1.5% to 2.5% after a membership has been active for a year.

Shares of Planet Fitness are up 33% YTD.

https://seekingalpha.com/news/3490658-burn-churn-planet-fitness