PLNT - Planet Fitness stock tanks 17% as board ousts CEO
2023-09-15 11:48:45 ET
Planet Fitness Inc (NYSE: PLNT) just ousted its Chief Executive – a move that came as a surprise for employees and investors alike. Its shares are down close to 20% at writing.
Craig Benson named the interim CEO
The fitness centres company has already started looking for an internal or external candidate to replace Chris Rondeau.
Craig Benson – a board member will assume the role of interim CEO in the meantime, as per the press release on Friday.
As we enter the next chapter of Planet Fitness’ journey, the Board felt that now was the right time to transition leadership.
But the Hampton-headquartered firm refrained from divulging the exact reason that made it opt for such an aggressive move. Planet Fitness stock is now down about 40% versus its year-to-date high.
Rondeau will remain on the board
The announcement is all the more surprising considering Planet Fitness reported strong results for its second financial quarter just last month.
Rondeau – who has been with the New York listed firm since the early 1990s will remain on its board, nominated for re-election next year and continue as an advisor as well, the press release added.
In today’s evolving environment, Planet Fitness is continuing to enhance our competitive advantage, capitalise on our size and scale, and drive further shareholder value.
The fitness centres operator sees its revenue climb about 12% in the current year. Wall Street currently has a consensus “buy” rating on Planet Fitness stock.
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