Chipotle Mexican Grill (CMG) made history by announcing the approval of a 50-for-1 stock split, marking a significant move for the restaurant chain operator based in Newport Beach, California.
The decision, a first in Chipotle’s 30-year history, is set to be presented to shareholders for voting at the annual meeting scheduled for June 16, demonstrating the company’s commitment to enhancing accessibility for staff and a wider range of investors.
If passed, shareholders will receive an additional 49 shares for every Chipotle share held as of the June 18 record date, with the distribution of the extra shares set to occur after the market closes on June 25. Trading on a post-split basis will commence the following day.
With Chipotle’s shares rising around 6.7% premarket following the announcement, the stock’s split would reduce the individual share price to approximately $55.95 based on the closing price of $2,797.56 on Tuesday. The strong performance of Chipotle’s stock, which has seen a 75% increase over the past 12 months, aligns with the company’s optimistic outlook.
Alongside the stock split, Chipotle unveiled plans for a special one-time equity grant designed for restaurant general managers and employees with more than two decades of service, further solidifying its commitment to reward long-standing employees.
Jack Hartung, Chipotle’s Chief Financial Officer, expressed that the split and equity grant aim to broaden the accessibility of the company’s stock to employees and a diverse pool of investors, particularly during a period of record revenues, profits, and growth.
In 2022, tech giant Google parent company Alphabet (GOOGL) also embarked on a notable 20-for-1 split, reflecting a trend among major corporations to make shares more affordable and appealing to a wider investor base.
For the latest updates on Chipotle’s stock split and other market news, stay tuned to the company’s official Twitter (TWTR) handle and financial announcements.
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