Planet Fitness stock plunges as CEO abruptly steps down, surprising Wall Street

Yet another CEO turnover.

On Friday, Planet Fitness’s (PLNT) board announced the decision to “transition to new leadership,” resulting in the departure of 30-year company veteran and CEO Chris Rondeau.

“As we enter the next chapter of Planet Fitness’ journey, the Board felt that now was the right time to transition leadership,” Stephen Spinelli, Jr., the board’s chairman, said in the release.

As the company looks for new leadership, six-year board member Craig Benson was named interim CEO, effective immediately. Benson previously served as New Hampshire governor and is a franchisee of both Planet Fitness and Dunkin’ Donuts. The company said it is considering both internal and external candidates.

Planet Fitness is the latest company to shake up its C-suite, and it’s something Wall Street isn’t taking lightly. On Friday, Planet Fitness stock plunged as much as 16%, hitting a 52-week low. The stock was also a trending ticker on Yahoo Finance.

Planet Fitness did not immediately respond to Yahoo Finance’s request for comment.

While no exact reason for Rondeau’s immediate departure was given, throughout his decade-long tenure, Rondeau was credited with growing the fitness center’s membership by over five-and-a-half times to 18.4 million members and its footprint by four times to more than 2,400 stores.

He also nearly quintupled revenue to a projected $1 billion-plus this year, from $200 million in 2013, and took the company public in 2015, William Blair analyst Sharon Zackfia said in a note. Since the company’s IPO, shares have more than tripled.

In the release, Rondeau called his career at Planet Fitness “an incredible ride,” thanking employees, franchisees, and members. He will continue to serve as a member of the board and will be nominated for reelection at the company’s 2024 annual meeting.

Chris Rondeau, CEO of Planet Fitness, is pictured at its first Canadian gym branch in Toronto. (Bernard Weil/Toronto Star via Getty Images)