Shares of fitness chain Planet Fitness (NYSE:PLNT) are plummeting today after a major management shakeup caught investors off guard.
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The company’s Board decided to transition to new leadership, resulting in the departure of Chris Rondeau as its CEO. Chris will remain on the company’s Board and act in an advisory capacity to facilitate a smooth transition. Furthermore, he will be nominated for re-election at PLNT’s annual meeting next year.
Chris has been with PLNT for 30 years. Acting as PLNT’s CEO for a decade, he oversaw a 5.5x jump in the company’s membership and a 4x jump in its store footprint.
The baton is passing over to Craig R. Benson, who will act as the interim CEO of the company. Benson is a Planet Fitness franchise owner and has been on the company’s Board for six years. The Board has now roped in an executive search firm to hone in on a candidate to permanently fill the CEO’s role.
Overall, the Street has a Moderate Buy consensus rating on PLNT. After today’s 15% fall, the average consensus price target of $76.80 implies a hefty 52% potential upside in the stock.
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