Dive Brief:

• Planet Fitness CFO Tom Fitzgerald is planning to retire at the end of August after four years in the role, the health-club chain said Thursday.

• The company will be launching a comprehensive hunt for a new finance chief with the assistance of an executive search firm, according to a press release.

• “During his tenure, Tom helped build a talented finance team that will ensure a smooth transition to the next chapter of the company's financial leadership,” Planet Fitness interim CEO Craig Benson said in the release. “We appreciate that he will remain with the company for the next several months as we conduct our search for Planet Fitness's next CFO.”

Dive Insight:

The transition comes as Planet Fitness is also searching for a new chief executive. In September, the Hampton, New Hampshire-based company’s board of directors ousted then CEO Chris Rondeau. Benson, a member of the board, was appointed interim CEO pending a search for a permanent replacement.

“As we enter the next chapter of Planet Fitness' journey, the Board felt that now was the right time to transition leadership," Board Chairman Stephen Spinelli Jr. said in a press release at the time. “In today's evolving environment, Planet Fitness is continuing to enhance our competitive advantage, capitalize on our size and scale, and drive further shareholder value.”

Rondeau, who agreed to continue serving as a member of the board, resigned from that role as of Feb. 15, the company said in a Tuesday Securities and Exchange Commission filing. The resignation was due to “disagreements with the Company over decisions made by the Company since Mr. Rondeau’s separation as chief executive officer in September 2023, including the Company’s decision to terminate the employment of approximately 9% of the Company's headquarters employees in February 2024,” according to the filing.

Rondeau’s ouster last fall was an abrupt move that stunned investors, particularly after a stronger-than-expected second-quarter earnings report during the month before, CNBC reported.

“The CEO search remains a top priority for the board and the search committee,” Benson said during a Thursday earnings call. “After considering several dozen candidates and having interviewed 13 very qualified finalists, the search committee will be sending a shortlist to meet with the whole board.”

The company expects to announce a new CEO prior to identifying its next CFO, Benson said, adding that Fitzgerald’s commitment to remain through the summer “will provide an extended transition period, allowing the new CEO to be involved in the CFO search process.”

Fitzgerald disclosed to the company in August of last year that he was contemplating retirement, he said in the Thursday release.

“I believe now is the right time to transition finance leadership as Planet Fitness enters its next phase of growth," he said.

Under a November 2023 retention bonus agreement between Planet Fitness and Fitzgerald, he will be entitled to receive a one-time cash bonus of $500,000 if he remains employed by the company through Aug. 31, 2024, the fitness chain said in a Thursday SEC filing.

Fitzgerald’s career in corporate finance has spanned four decades, according to his LinkedIn profile.

Prior to joining Planet Fitness in 2020, he was CFO of sandwich chain Potbelly for about a year. Before that, he served at fashion retailer Charming Charlie as CFO, among other roles. He also previously did stints at Liz Claiborne, Burlington Coat Factory, and Bath & Body Works.

In a separate Thursday press release, Planet Fitness also reported that its total revenue reached $285.1 million during the fourth quarter ended Dec. 31, a 1.4% increase year over year. Net income was $36.8 million, compared to $36.3 million in the prior year period.

The company said it expects its revenue in 2024 to increase “in the 6% to 7% range.” Meanwhile, it also expects its capital expenditures to increase about 25% due to additional stores.