Chipotle’s Shares Hit Record Highs After Fast Food Company Announces First-Ever 50:1 Stock Split

Chipotle Mexican Grill Inc. CMG has declared its first-ever stock split, leading to a significant surge in its stock price.

What Happened: The company’s board approved a 50:1 split of common shares, which will be one of the most substantial stock splits in the history of the New York Stock Exchange (NYSE), reported Investing.com on Tuesday.

The split is subject to shareholder approval at the Jun. 6, 2024 annual meeting. If approved, each investor of record, as of Jun. 18, 2024, will receive 49 additional shares for each share held. The split shares will be distributed after the market closes on Jun. 25, 2024.

See Also: This Could Be A Gamechanger For Natural Gas In Europe

Following the announcement, Chipotle’s stock, which closed at $2,797.56, saw a 6% increase in the after-hours session, reaching over $2,960. At the current levels, post-split shares would trade at nearly $60.

“This split comes at a time when our stock is experiencing an all-time high driven by record revenues, profits, and growth,” said the company’s Chief Financial and Administrative Officer, Jack Hartung, noting that the move should “make our stock more accessible to employees as well as a broader range of investors.”

Why It Matters: Chipotle’s stock split announcement comes at a time when the company’s stock has been experiencing unusual movements. In February, Jim Cramer expressed skepticism regarding the market’s behavior, particularly with stocks like Chipotle, during the earnings season.

Despite this skepticism, Chipotle’s stock has continued to perform well, with the company reporting better-than-expected fourth-quarter financial results and announcing a share repurchase of up to $200 million.

This move and the stock split could further boost investor confidence in the company’s performance.

Read Next: ‘Dogecoin Killer’ Shiba Inu Burn Rate Defies Market Action With 933% Surge, Daily Active Addresses Spike By 8%

Image Via Shutterstock