Chipotle shareholders approve historic stock split

Chipotle Mexican Grill shareholders have approved one the biggest stock splits in New York Stock Exchange history.

During its annual meeting on Friday, June 6, Chipotle shareholders approved a 50-for-1 stock split, the first stock split in the company’s history. Shareholders also approved increasing the number of authorized shares to conduct the stock split. The record date is June 18 and the stock will begin trading on a post-split basis on June 26

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 crew members with more than 20 years of service.

The stock split comes as Chipotle is on a hot streak and shows no signs of losing momentum. In April, the quick-serve restaurant chain reported strong first-quarter sales and earnings as traffic rose across all income groups, with consumers remaining unfazed by its higher menu prices. Net sales rose 14.1% to $2.7 billion. Digital sales represented 36.5% of total sales. Same-store sales increased 7% as traffic rose 5.4%. The average check was up 1.6%.

“We believe the stock split will make our stock more accessible to our employees as well as a broader range of investors," said Jack Hartung, chief financial and administrative officer, Chipotle. "With this historic decision, we'll be better able to reward our team members and empower them to have ownership in our company."

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 has approximately 3,500 restaurants in the United States, Canada, the United Kingdom, France, Germany, and Kuwait. It is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe.