[ad_1]
(Bloomberg) — Chipotle Mexican Grill said its board of directors has approved a 50-1 stock split and will put the changes before shareholders on June 6.
Most Read Articles on Bloomberg
The company’s shares, which closed at $2,797.56 in New York trading on Tuesday, have risen 74% in the past 12 months. As of 6:32 p.m. during extended trading, the stock was up 4.4%.
The company said in a statement that the split is the first in the company’s 30-year history. This burrito chain was listed in January 2006 at $22 per share. As of Tuesday’s close, the company’s stock was the fourth-highest in the S&P 500 index, according to data compiled by Bloomberg.
If shareholders approve the split, which the company says will be the largest in New York Stock Exchange history, owners will receive an additional 49 shares for every share they own, Chipotle said. The split shares are scheduled to begin trading on June 26th.
Chief Financial Officer Jack Hartung said in a statement that the separation will make the stock more accessible to employees and a broader range of investors.
The company’s stock price has reached an all-time high, which Hartung attributes to “record revenues, profits and growth.” Chipotle last month posted better-than-expected fourth-quarter results, with both transaction value and check size increasing, overcoming the downturn that hit other chains.
Chipotle will give one-time stock grants to restaurant general managers and staff who have worked at the chain for more than 20 years, the company said.
Stock splits made a comeback in early 2010, but have been on the decline in recent years. Chipotle will become the fourth S&P 500 company to split its stock after the end of 2022, according to data compiled by Bloomberg. Walmart and Cooper Company both split their stocks this year. In comparison, from 2020 to 2022 he had about 20 cases.
(Updates with detailed statement and background on the stock split.)
Most Read Articles on Bloomberg Businessweek
©2024 Bloomberg LP
[ad_2]
Source link
