Chipotle’s 50-for-1 stock split mirrors Walmart
Written by laserteam on March 20, 2024
(Fox Business) – Chipotle’s board of directors approved a 50-for-1 split of its common stock, following a similar move by Walmart earlier this year.
“This is the first stock split in Chipotle’s 30-year history, and we believe this will make our stock more accessible to employees as well as a broader range of investors,” CFO Jack Hartung said. The stock is currently trading above $2,966 per share.
If the split, which is one of the largest in New York Stock Exchange history, is approved by shareholders in June, a single share will trade around $58 based on Wednesday’s range. The stock has gained over 71% during the last 12 months, beating the S&P 500’s 29% rise.
The announcement comes at a time when the company’s stock is sitting at an all-time high due, in part, from “record revenues, profits, and growth,” according to Hartung. Shareholders of record as of June 18 will receive the additional shares after the market closes on June 25.
The burrito maker also announced that it’s offering a one-time equity grant for all restaurant general managers as well as crew members who have worked for more than 20 years.
