Shares of Planet Fitness Inc. (NYSE: PLNT) fell more than 7% Wednesday after the company shocked investors by ousting its long-serving chief executive, Chris Rondeau.
The gym franchiser said that it had dismissed Rondeau “without cause” and appointed board member and former Yum Brands executive, Francis “Frank” Morano as interim CEO and interim president.
This news of the departure of Rondeau sent shares of Planet Fitness tumbling as investors appear unsure of the company’s direction without its long-term leader.
Rondeau had been in his role since 2008 and was credited for taking the chain of gym franchises from a small regional brand to a national powerhouse. He also developed a number of initiatives such as the “Judgment Free Zone” and “Anytime Fitness” Social Group that helped make the brand known beyond its physical locations.
The company did not provide a reason for the sudden change, saying only that “the move reflects the board’s desire to drive continued growth and shareholder value over the long-term.”
It remains to be seen how Morano, who previously served as chief financial officer of Yum Brands from 2010 and 2017, will approach his new role. He is slated to lead the company until a permanent replacement is found.
