Chipotle shareholders are set to benefit from a 50-for-one stock split, one of the largest in Wall Street history, aimed at making the fast-casual titan’s shares more affordable for a broader range of investors. The split, which is set to take effect after the close of trading on Tuesday, will see investors receive 49 additional shares for every one held, with share prices adjusted accordingly. This move is seen as a sign of strength for Chipotle, especially as other restaurant chains face challenges and closures.
Investors were required to hold shares by the end of trading on June 18 to be included in the split, with trading on the split basis set to begin on Wednesday. Chipotle’s stock closed at $3,193.74 per share on Monday, and if the price remains the same at the end of Tuesday’s trading, the stock would be valued at $63.87 per share. The stock has had fluctuations since the split was approved on June 6, hitting a high of $3,427.61 per share before dropping below $3,200 on Monday.
Chipotle reported $2.7 billion in revenue and a 16.3% operating profit margin in the first quarter, and has been expanding with the opening of 47 restaurants, including locations with drive-thrus called “Chipotlane.” The stock split is expected to make Chipotle’s stock more accessible to employees and investors, and could be a good opportunity for those looking to invest in the company.
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