New CEO appointed at Planet Fitness amid analysts' positive outlook.

• Planet Fitness names Colleen Keating as its new CEO, effective June 10
• Planet Fitness welcomes Keating amid challenges such as the increasing popularity of weight loss medications like Ozempic and Wegovy, as well as the ongoing debate over its locker room policy.
• Analysts largely cheered the appointment, though Planet Fitness shares dipped Tuesday.

Colleen Keating has been appointed as the new CEO of the fitness club, starting from June 10, as announced on Tuesday.

Craig Benson, who has been serving as interim CEO since September, will continue to be a member of the board of directors.

Despite shares falling more than 3% following the announcement, some analysts are calling it a positive for the stock, after months of searching.

Korinne Wolfmeyer, a Piper Sandler analyst, stated that the news serves as "the initial spark" for the stock's performance.

"Wolfmeyer stated in a note that Planet Fitness now has a leader who can confidently implement the New Growth Model changes, inspire trust in potential pricing adjustments, and outline a strategy for the upcoming CFO search. This, in turn, is expected to positively impact earnings growth and increase the stock's value."

On Tuesday, the stock was trading for roughly $60 a share, and Wolfmeyer has rated it as overweight with an $80 price target.

Keating has extensive experience in managing large-scale operations and franchises, as well as leading global consumer-facing operations in the hospitality, real estate, operations, and franchise management sectors.

She has been the CEO of FirstKey Homes since 2020, and prior to that she held leadership positions at both Starwood Hotels & Resorts Worldwide, Inc. and other companies.

Planet Fitness welcomes Keating amid challenges such as the increasing popularity of weight loss medications like Ozempic and Wegovy, as well as the ongoing debate over its locker room policy.

Sharon Zackfia, a William Blair analyst, views Keating as a solid yet unconventional choice to lead Planet Fitness as it faces franchisee tensions and a recent social media controversy about the safety of women's locker rooms in light of Planet's policy to use locker rooms that best align with members' gender identities.

William Blair has an "outperform" rating on Planet Fitness stock.

Planet Fitness's CFO search will involve Keating, as the company's current CFO, Tom Fitzgerald, announced his retirement in February and will step down on September 1.

"Stephen Spinelli, chairman of the board, stated that Colleen's deep operational knowledge, strategic mindset, and understanding of large-scale franchise operations and consumer-facing brands set her apart from the other candidates. He added that they are confident that Colleen is an exceptional leader with the necessary skills, experience, and culture-first mindset to accelerate Planet Fitness's next phase of growth."

Since Rondeau announced his departure from the role after 10 years, Planet Fitness shares have experienced a 17% decline and have been unstable.

The annual general meeting of Planet Fitness will take place on April 30, while the first-quarter earnings report will be released on May 2.