Chipotle Announces Historic 50-for-1 Stock Split to Make Shares More Accessible
Chipotle Mexican Grill’s Board of Directors announced on Tuesday that they have approved a 50-for-1 stock split, making it one of the most significant stock splits in the history of the New York Stock Exchange. This decision will significantly reduce the cost of investing in Chipotle for average investors if it gains shareholder approval.
A single Chipotle share, which closed at $2,797.56 in the stock market on Tuesday, will be divided into 50 smaller shares following this split. This move is designed to make Chipotle’s stock more affordable and accessible to a broader range of investors, including employees, as stated by Jack Hartung, the company’s Chief Financial Officer.
Hartung commented, “This is Chipotle’s first stock split in its 30-year history, and we believe this will make our stock more accessible to a larger audience.”
Although the approval of this stock split is not yet guaranteed, Chipotle intends to put it up for a shareholder vote on June 6. Should it be approved, the cheaper post-split shares will begin trading at the market open on June 26.
The announcement of Chipotle’s potential stock split was met with enthusiasm from investors, as the company’s shares experienced a nearly 5% increase in after-hours trading on Tuesday. It is noteworthy that Chipotle’s shares have reached all-time highs, making this decision even more relevant for potential investors.
Companies frequently opt for stock splits when they believe the share price is out of reach for typical investors. By reducing the number of shares while keeping the total value constant, Chipotle aims to make its stock more affordable and accessible. This move may attract a larger investor base and potentially increase overall demand for the company’s shares.
Stay tuned as the outcome of this stock split vote approaches, which could significantly impact Chipotle’s investor landscape and overall market presence.
