Planet Fitness raises prices for first time in over 25 years
TheStreet’s Conway Gittens brings the latest business headlines from the floor of the New York Stock Exchange as markets open for trading Friday, May 10.
Related: Stock Market Today: Stocks higher on rate cut bets, Dow aims for 40,000
Full Video Transcript Below:
CONWAY GITTENS: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Stocks are coming off yet another positive day on Wall Street with the Dow on track for another winning streak. Investors are encouraged after the Fed indicated that its next move is unlikely to be a rate hike, a solid earnings season and softer labor market data - also boosting sentiment.
While over 80 percent of companies in the S&P 500 have released results, investors are looking ahead to earnings from Alibaba, Home Depot, Walmart and Under Armour due out next week.
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In other news - Planet Fitness is doing something it hasn’t done in 26 years: raising the price of membership. Since 1998, the cost of a basic membership has been $10, but the company announced that will now increase to $15. Much like Costco’s $1.50 hotdog, Planet Fitness’ $10 membership had become attached to the brand.
The 50 percent price hike comes as higher interest rates and construction costs have forced the company to slow down new gym openings. Interim CEO Craig Benson said “We’ve seen in every industry people move in price. So, it is not going to come as a shock to anybody that we are moving a price that’s been in effect for a long, long time.”
However, the increase only applies to new members. Planet Fitness says current members will pay the $10 per month for the duration of their membership. The company also said its top-tier membership, which costs $25 a month, will see a price increase in some locations in the summer of 2024. Welcome to GYM-flation.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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