Planet Fitness (NYSE:PLNT) shares were down on Friday after it announced the ouster of its CEO Chris Rondeau.
Board member Craig Benson will take over the position on an interim basis as the company searches for a new CEO, according to a statement from Planet Fitness (NYSE:PLNT).
Shares of the fitness chain have lost nearly 35% year to date. On Friday, its shares were down over 14% at $51.34.
Rondeau had been at the helm since 2013 and will stay on as a board member to support the transition, the company said.
On a financial level, Planet Fitness (NYSE:PLNT) has been reporting consistently strong earnings, but those have not translated to shareholder value. Its most recent quarterly results delivered earnings per share of $0.65 versus estimates of $0.54 and up from $0.38 a year prior. Over the last four quarters, Planet Fitness has exceeded expectations three times.
Analysts at Jefferies are not expecting any change in the company's near-term strategy despite the leadership change.
“We believe investors should note that (Planet Fitness) has a capital-light, low-risk, defensible model with attractive pricing; a large and growing unit presence; advertising flywheel and expanding affinity network; and enhanced digital strategies that reduce friction,” Jefferies analysts wrote.
The research firm is maintaining its 'Buy' rating and $90 price target on the stock.