Chipotle shares rise as company declares first ever, 50:1 stock split
investing.comChipotle Mexican Grill (NYSE:CMG) stock is gaining around 6% late into the after-hours session on Tuesday, after the company announced its first ever share split.
In what will be 'one of the biggest stock splits in New York Stock Exchange (NYSE) history,' the fast casual restaurant chain's board approved a 50:1 split of common shares.
If passed by the shareholders — Chipotle will seek approval at its upcoming annual meeting on June 6, 2024 — each investor in CMG of record as of June 18, 2024 will receive 49 additional shares for each share held. The split shares will be distributed after market close on June 25, 2024.
«This split comes at a time when our stock is experiencing an all-time high driven by record revenues, profits, and growth,» said the company's Chief Financial and Administrative Officer Jack Hartung, noting that the move should «make our stock more accessible to employees as well as a broader range of investors.»
CMG stock closed at $2,797.56 earlier today, and is inching above $2,960 following the announcement — at current levels, the post-split shares would trade just shy of $60.
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