Chipotle board OKs 50-for-one stock split — one of biggest splits in NYSE history
The board of Chipotle Mexican Grill has approved the first stock split in the company’s 30-year history.
The quick-serve restaurant chain’s board has approved a 50-for-one split of its common stock. Chipotle said it plans to seek shareholder approval for an amendment at its annual meeting of June 6. If approved, it would be one of the biggest stock splits in New York Stock Exchange (NYSE) history.
The news comes as Chipotle’s shares are trading at an all-time high and as the company shows no signs of losing momentum. In February, the company reported fourth-quarter earnings and sales that smashed expectations amid traffic gains that bucked recent industry trends.
"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," said Jack Hartung, chief financial and administrative officer, Chipotle. "This split comes at a time when our stock is experiencing an all-time high driven by record revenues, profits, and growth."
To commemorate the event and in recognition of the company's strong performance, Chipotle announced a special one-time equity grant for all restaurant general managers as well as employees with more than 20 years of service.
"We want to thank our general managers and tenured crew members for their hard work and dedication to Chipotle by providing a one-time equity grant as an additional incentive to continue delivering outstanding results and share in the financial success of our Company," said Brian Niccol, chairman and CEO, Chipotle.
If the amendment is approved, shareholders of record as of June 18, 2024 will receive 49 additional shares for each share held, which will be distributed after market close on June 25, 2024. Chipotle's shares are expected to begin trading on a post-split basis at the market open on Wednesday, June 26, 2024.
Chipotle had over 3,400 restaurants as of Dec. 31, 2023, in the United States, Canada, the United Kingdom, France and Germany. It is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe.