Chipotle Mexican Grill Inc (NYSE:CMG) surged more than 7% to top $3,000 per share after the company’s board approved its first-ever stock split which aims to improve investor access to the stock.
The board on Tuesday evening announced that it had approved a 50-for-1 split, which it said would be one of the biggest stock splits in New York Stock Exchange (NYSE) history.
The stock split plan requires shareholder approval of an amendment to its Certificate of Incorporation to increase the number of authorized shares, which the company will seek at Chipotle’s upcoming annual meeting on June 6, 2024.
Pending shareholder approval of the amendment, Chipotle expects its shares will start trading on a post-split basis at the market open on Wednesday, June 26, 2024.
Based on Tuesday’s closing price of $2,797.56, Chipotle shares would trade at about $56 each post-split.
"This is the first stock split in Chipotle's 30-year history, and we believe this will make our stock more accessible to employees as well as a broader range of investors," Chipotle’s chief financial and administrative officer Jack Hartung said in a statement.
"This split comes at a time when our stock is experiencing an all-time high driven by record revenues, profits, and growth."
The Mexican chain known for its burritos and bowls went public in January 2006 at $22 per share, gaining about 13,000% to date. Chipotle shares traded 7.2% higher at $3,002 mid-morning on Wednesday.