Portrait of Colleen Keating.
Provided by Planet Fitness
planet fitness Colleen Keating will take over as the fitness club’s new chief executive, effective June 10, it was announced on Tuesday.
Craig Benson, who has served as interim chief executive since Chris Rondeau’s departure last September, will remain on the board.
The news came after months of searching, and some analysts said it was positive for the stock, although shares fell more than 3% following the announcement.
Piper Sandler analyst Korinne Wolfmeyer said the news was “the first of several catalysts” for the stock.
“Planet Fitness now has someone who can comprehensively lead the change to the new growth model, instill confidence in potential pricing changes and help plan for the upcoming CFO search,” Wolfmeyer said in a note. “We All of these are considered positive drivers for PLNT’s earnings growth and valuation appreciation.”
Wolfmeyer rates the stock an “overweight” with a price target of $80. The stock was trading around $60 a share on Tuesday.
Keating has 30 years of experience in large-scale operations and franchise management and has provided leadership in global consumer-facing operations including hospitality, real estate, operations and franchise management.
Since 2020, she has served as Chief Executive Officer of FirstKey Homes. She previously held leadership roles at: intercontinental hotel group and Starwood Hotels & Resorts Worldwide, Inc.
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Keating joins Planet Fitness at a time when the company faces some headwinds, including the growing popularity of weight-loss drugs like Ozempic and Wegovy and controversy surrounding locker room policies.
“We view Keating as an unconventional but solid choice to lead Planet Fitness as it addresses tensions among franchisees and the recent controversy on social media regarding women’s locker room safety, as Planet’s stated policy is to use The locker room that best matches the member’s gender identity.
William Blair rates Planet Fitness stock an “outperform.”
Keating will also play a key role in the company’s search for a new chief financial officer. The company’s current chief financial officer, Tom Fitzgerald, announced his retirement in February and will step down on September 1.
“Colleen’s deep operational knowledge, strategic thinking and understanding of large-scale franchising and consumer-facing brands made her stand out among the candidates being considered,” said Stephen Spinelli, chairman of the health club’s board of directors. “We believe Colleen is an outstanding leader with the skills, experience and culture-first mindset needed to accelerate Planet Fitness’ next phase of growth.”
Planet Fitness shares, which have fallen about 17% this year, have been volatile since Rondeau announced he would step down after 10 years in the job.
Planet Fitness will hold its annual shareholder meeting on April 30 and release its first-quarter financial results on May 2.
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