Xponential Fitness soars after new CEO hire pumps up investors (NYSE:XPOF)

Xponential Fitness (NYSE:XPOF) soared in Monday morning trading after the company’s board of directors unanimously appointed Mark King as Chief Executive Officer and said he would join the board. Brenda Morris will cease serving as Interim CEO, but will continue to serve as a member of the board.

Xponential Fitness (XPOF) note that King is a highly innovative, growth-oriented leader with an established track record scaling iconic global consumer brands and franchisors. Most recently, as CEO of Taco Bell, he led the franchisor to positive same-store sales growth in each quarter but one under his leadership while simultaneously opening more than 1,400 new franchise locations.

Following the CEO development, Roth MKM said it was returning to a Buy rating on the fitness franchise stock. “We are impressed by the speed and quality of the hire, and believe that fundamentals have remained strong during the transition,” highlighted analyst George Kelly. King’s appointment was said to provide another check that the ongoing SEC/USAO investigations have likely not broadened or intensified. King’s compensation was also noted to be well-aligned with shareholders as half of his stock compensation is performance-vesting at $16, $25, and $30. His 2024 bonus is also based on share price ($16).

Kelly also pointed to recent positive Google Search trends for Xponential Fitness (XPOF).

Roth MKM set a $22 price target on XPOF based on 9.3X the firm’s FY25 EBITDA estimate.

Shares of Xponential Fitness (XPOF) were up 23.78% at 10:20 a.m. yo $13.95 vs. the 52-week trading range of $7.40 to $28.19.