Planet Fitness stock tanks 17% as board ousts CEO

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.

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.

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.