Chipotle Mexican Grill made headlines on Tuesday as its board approved a 50-for-1 split of its common stock, leading to a significant surge in the burrito chain’s shares during extended trading hours.
Board Approval and Shareholder Consideration:
The California-based company disclosed that the stock split is contingent upon shareholder approval at its June 6 annual meeting.
Should shareholders grant their approval, individuals listed as shareholders as of June 18 will receive an additional 49 shares for each share they currently hold.
Chipotle anticipates that trading on a post-split basis will commence at market open on June 26. This move is set to mark one of the largest stock splits in the New York Stock Exchange (NYSE) history.
Record-Breaking Performance and Market Impact:
Chipotle’s decision comes as its shares have already reached a record high of $2,797.56 on Tuesday, having surged by over 70% in the past 12 months alone.
The company’s consistent growth has been fueled by robust quarterly earnings and sales performance, which exceeded market expectations. This is particularly notable given the rising prices of menu items.
