Planet Fitness stock falls 15% as board fires longtime CEO Chris Rondeau in shock
- Planet Fitness’ board of directors announced Friday morning the ouster of CEO Chris Rondeau
- Rondeau ran the gym chain for a decade, after starting as an office clerk in 1993.
- His firing was a mysterious decision that caused the company’s stock to plummet.
Planet Fitness CEO Chris Rondeau was abruptly fired by the company’s board of directors, in a mysterious decision that sent the company’s shares tumbling.
The company announced the move in a statement Thursday morning, saying that Craig R. Benson, a board member and former Republican governor of New Hampshire, would immediately take over as interim CEO.
The statement offered little explanation for the decision, saying only that Rondeau was not fired “as a result of significant or unexpected financial events.”
Planet Fitness, a chain of low-cost gyms, has more than 2,400 locations worldwide, known for their purple colors and signs declaring a “judgment-free zone.”
Rondeau had been CEO since 2013, having worked his way up from front desk clerk at the company’s first location in Dover, New Hampshire, where he began working in 1993.
Planet Fitness CEO Chris Rondeau was abruptly fired by the company’s board of directors, in a mysterious decision that sent the company’s shares tumbling.
The company’s shares fell 15% Friday morning and traded at $50.21, their lowest level since the pandemic began in March 2020.
Last year, Rondeau’s compensation totaled $5.6 million, compared to $9.3 million in 2021, according to public disclosures.
A Planet Fitness spokesperson did not immediately respond to a request for more information about Rondeau’s firing.
Craig R. Benson, board member and former Republican governor of New Hampshire, will immediately take over as interim CEO.
The company’s shares fell 15% Friday morning and traded at $50.21, their lowest level since the pandemic began in March 2020.
In a statement, Planet Fitness Chairman of the Board Stephen Spinelli Jr said: “As we enter the next chapter of Planet Fitness’ journey, the Board of Directors felt this was the right time to make a leadership transition.
Rondeau also released a statement saying, “My 30-year career at Planet Fitness has been an incredible journey, and it has been an honor to lead this company and serve our employees, franchisees and members, all of whom have played a key role in our tremendous growth and success.
“I am grateful and look forward to supporting the management team in an advisory capacity and am confident in the long-term potential of Planet Fitness.”
Planet Fitness says it has hired an executive search firm to assist in the search for a new permanent CEO and will review internal and external candidates.
Planet Fitness, a chain of low-cost gyms, has more than 2,400 locations worldwide, known for their purple colors and signs declaring a “judgment-free zone.”
The company’s shares have fallen about 34 percent since the start of this year.
“While PLNT (Planet Fitness) has experienced significant growth during Rondeau’s tenure as CEO, the transition announcement follows a more recent period of stock underperformance, primarily driven by more growth. weaker than expected from franchised stores,” RBC analyst Christopher Carril said in a note.
In August, the company reported that its revenue rose nearly 28% to $286.5 million in the second quarter, while its net income nearly doubled to $44.2 million.
“Despite this management adjustment, we do not expect any change in the company’s strategy from the team,” Jefferies analysts led by Randal Konik said in a note to investors.
