Chipotle Announces Plans for 50-to-1 Stock Split at Upcoming Annual Meeting

Chipotle Announces Plans for 50-to-1 Stock Split at Upcoming Annual Meeting

(Bloomberg) — Chipotle Mexican Grill Inc. said its board of directors approved a 50-for-1 split of its shares and will present the change to shareholders on June 6.

Most read on Bloomberg

The stock, which closed Tuesday at $2,797.56 in New York, has gained 74% over the past 12 months. Shares jumped 4.4% as of 6:32 p.m. in extended trading.

The split would be the first in the company’s 30-year history, the company said in a statement. The burrito chain went public in January 2006 at a price of $22 per share. As of Tuesday’s close, its stock price was the fourth highest in the S&P 500 index, according to data compiled by Bloomberg.

If shareholders approve the split — which the company says would be one of the largest in the history of the New York Stock Exchange — owners will get an additional 49 shares per share owned, Chipotle said. The split shares would begin trading on June 26.

The split will make the stock more accessible to employees and a broader range of investors, Chief Financial Officer Jack Hartung said in the release.

The company’s shares hit a record high, which Hartung attributed to “record revenues, profits and growth.” Chipotle reported better-than-expected fourth-quarter results last month as transactions and check sizes increased, avoiding a slowdown that has hurt other chains.

Chipotle will provide a one-time equity grant to restaurant general managers and crew members who have worked at the chain for more than 20 years, the company said.

After experiencing a strong comeback at the start of the decade, stock splits have seen a decline in recent years. Chipotle would be only the fourth S&P 500 company to split its shares since late 2022, according to data compiled by Bloomberg. Walmart Inc. and Cooper Cos. have both split their shares this year. That compares to about two dozen from 2020 to 2022.

(Updated with statement details and context on stock splits.)

Most read from Bloomberg Businessweek

©2024 Bloomberg LP

Source Reference

Latest stories