The shares of fast-growing fitness chain operator Planet Fitness (NYSE:PLNT) have slumped 5.8% in price over the past five days as cities including New York, San Francisco, and California have imposed COVID-19 vaccination mandates for entry to restaurants, gyms, bars, and entertainment venues. Furthermore, with other major cities expected to follow suit, amid a surge in coronavirus Delta variant cases, the stock could take a further beating. Read on to learn more.Planet Fitness, Inc. (PLNT) in Newington, N.H. is one of the leading franchisors and operators of fitness centers, with more than 2000 stores in 50 states. With nearly all stores now reopened, PLNT’s strong net membership growth has helped its stock climb 30.4% over the past year. In addition, the company has added 700,000 new members since the end of the first quarter, as more individuals appreciate the benefits of staying fit amid the pandemic.
However, with major U.S. cities now imposing full COVID-19 vaccination mandates on customers and employees of gyms, restaurants, and other entertainment venues, shares of the fitness operator have dipped 5.8% over the past five days and 2.5% over the past month. Furthermore, PLNT is currently trading 20.8% below its 52-week price high of $90.34, which it hit on February 25, 2021.
With the seven-day average of daily coronavirus cases surpassing the peak seen last summer, more states are expected to impose new restrictions and announce vaccine mandates. This could cause a further decline in PLNT’s stock price.