(Bloomberg) — Chipotle Mexican Grill Inc. stated its board accredited a 50-to-1 cut up of its inventory and can put the change earlier than shareholders on June 6.
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The inventory, which closed at $2,797.56 in New York buying and selling Tuesday, has gained 74% within the final 12 months. The shares jumped 4.4% at 6:32 p.m. in prolonged buying and selling.
The cut up could be the primary within the firm’s 30-year historical past, the corporate stated in an announcement. The burrito chain went public in January 2006 at $22 a share. As of Tuesday’s shut, its inventory value was the fourth highest on the S&P 500 Index, in keeping with information compiled by Bloomberg.
If shareholders approve the cut up — which the corporate says could be one of many largest in New York Inventory Trade historical past — homeowners will get 49 extra shares per share held, Chipotle stated. The cut up shares would begin buying and selling on June 26.
The cut up will make the inventory extra accessible to staff and a broader vary of traders, Chief Monetary Officer Jack Hartung stated within the assertion.
The corporate’s shares are at an all-time excessive, which Hartung attributed to “document revenues, income and progress.” Chipotle final month posted fourth-quarter outcomes that beat expectations as each transactions and examine sizes rose, bucking a slowdown that harm different chains.
Chipotle will give a one-time fairness grant to restaurant normal managers and crew members who’ve labored on the chain for greater than 20 years, the corporate stated.
After having fun with a comeback earlier within the decade, inventory splits have been on the wane lately. Chipotle could be simply the fourth firm within the S&P 500 to separate its inventory for the reason that finish of 2022, in keeping with information compiled by Bloomberg. Walmart Inc. and Cooper Cos. each cut up their shares this yr. That compares with about two dozen from 2020 via 2022.
(Updates with particulars from assertion and context on inventory splits.)
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