Chipotle's 50-to-1 stock split on deck
Chipotle is spicing up its stock with its 50-for-1 split set to begin trading on Wednesday. The move will allow more investors access to the high-priced equity.
Chipotle’s highly anticipated 50-for-1 stock split is on deck and may be one of the largest in the New York Stock Exchange's history.
Shareholders of the popular Mexican fast-food chain’s common stock as of Tuesday's close of trading will receive the additional shares, which will begin trading Wednesday. At current levels, the stock, which closed at $3,193.74 per share Monday, would price at $63.86.
"The trading price of our common stock has risen significantly over the past couple of years and our common stock currently trades higher than most other S&P 500 companies," Chipotle said in its proxy statement published in April. "We believe the Stock Split would help reset the market price of the common stock, which would give employees more flexibility in managing their Chipotle shares and make our common stock more accessible to a broader range of potential investors." Shareholders approved the move this month.
The stock has gained over 57% during the past 12 months.
The Mexican fast-food chain, founded in 1993, has never done a stock split prior to the upcoming one. It priced its shares at $22 when it IPO'd in 2006.
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In late April while disclosing its first-quarter performance, Chipotle estimated it would notch mid to high-single digit growth in its full-year comparable restaurant sales. It saw full-year comparable restaurant sales rise 7.9% last year.
The company’s next quarter financial results will come out in July.
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It will also join Walmart and other companies that have already split their stock this year, with Nvidia’s having most recently split 10-to-1 this month.
Daniella Genovese contributed to this report.