(Reuters) – Chipotle Mexican Grill stated on Tuesday its board had authorized a 50-for-1 cut up of its widespread inventory, sending the burrito chain’s shares about 7% increased in prolonged buying and selling.
The California-based firm stated the inventory cut up was topic to shareholder approval at its upcoming annual assembly on June 6. If authorized, shareholders of file as of June 18 will get 49 further shares for every share held.
The shares are anticipated to start buying and selling on a post-split foundation at market open on June 26, in what the corporate described could be one of many greatest inventory splits in New York Inventory Change (NYSE) historical past.
Its shares had closed at a file excessive of $2,797.56 on Tuesday and had gained greater than 70% over the past 12 months.
Chipotle shares have steadily risen after the corporate topped market estimates for quarterly revenue and gross sales in February, helped by its comparatively rich clientele ordering its burritos and rice bowls regardless of menu gadgets getting pricier.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Modifying by Devika Syamnath)
