Shares of fitness franchising company Xponential Fitness (NYSE: XPOF) skyrocketed on Monday after the company announced its new CEO. Normally, a new CEO wouldn't move a stock this much, but this is a special situation, and investors liked the company's choice. As of 3 p.m. ET Monday, Xponential Fitness stock was up a whopping 36%.

Xponential Fitness allegedly misled franchisees regarding the financials of its fitness brands, and its founder and former CEO Anthony Geisler allegedly made threatening statements. Both matters are under investigation by the Securities and Exchange Commission (SEC). Geisler was suspended indefinitely in May and resigned a week later, leaving a CEO vacancy.

Today, Xponential Fitness announced Mark King as its new CEO. King was CEO of Taco Bell (of Yum! Brands) from 2019 until he retired on Jan. 1. There are more than 8,500 Taco Bell locations worldwide, 94% of which are franchised. Without a doubt, King is more than qualified to lead a franchise business such as Xponential Fitness.

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Source Fool.com