Planet Fitness CEO Chris Rondeau Is Departing and the Stock Is Sinking

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Planet Fitness

The fitness chain slipped Friday after announcing the departure of CEO Chris Rondeau and appointing a new interim CEO.

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Planet Fitness

The board “has decided to transition to new leadership, resulting in the departure of Chris Rondeau,” the company said in a statement. News Friday. The company announced that the former CEO, who has been at the helm since January 2013, will remain a member of the board and stand for re-election next year.

Director Craig Benson will serve as interim CEO while the board searches for a permanent candidate.

“As we enter Planet Fitness’ next journey, the board feels the time is right to transition leadership,” Chairman Stephen Spinelli said in the release.

In a research note issued on Friday, analysts at William Blair weighed in on the news.

“While the cause of the leadership transition is uncertain, the announcement that the change was not the result of material or unexpected financial events, did not appear to be sudden or planned, as the company canceled two scheduled investor conference presentations. Week and the decision was the board’s, not Rondeau’s,” analysts wrote.

Planet Fitness confirmed by email Baron That he did not attend meetings.

“While the leadership transition will not be disruptive, we continue to believe that Planet’s unique value-oriented, high-volume model and operational ratings can deliver healthy EPS growth even in a slow expansion environment,” he added.

The stock jumped 14% to $51.23, near its lowest since Aug. 7, 2020, according to Dow Jones market data.

During Rondeau’s reign, the stock was excellent. In the year It began trading in 2015 and has returned 274% in that time as of Thursday’s close.

S&P 500
It has increased to 116 percent.

In the more recent past, however, the stock has hit a rocky patch. At the beginning of this year, the company Disappointing first quarter earnings report And its president, Edward Hyams, resigned effective May 31, months after joining the company.

Planet Fitness is back to report Better than expected second quarter earnings But shares are down 34% this year.

Write to Emily Dattilo at [email protected]