Chipotle Mexican Grill (CMG.N) announced on Tuesday that its board had given the green light to a 50-for-1 split of its common stock. This move led to a surge of about 7% in the burrito chain’s shares during extended trading.
The California-based company specified that the stock split is contingent upon shareholder approval, slated for its upcoming annual meeting on June 6. If sanctioned, shareholders recorded as of June 18 will receive an additional 49 shares for each share they presently hold.
The shares are anticipated to commence trading on a post-split basis at the opening of the market on June 26, marking what the company described as one of the most significant stock splits in New York Stock Exchange (NYSE) history.
Before this announcement, Chipotle’s shares had concluded at a record high of $2,797.56 on Tuesday, having surged by over 70% in the past year.
Chipotle’s upward trajectory began following the company’s outperformance of market expectations for quarterly profit and sales in February.
This success was attributed to its relatively affluent customer base continuing to patronize its burritos and rice bowls despite the rise in menu prices.
