Chipotle Stock Split: What You Need to Know
Investors Who Hold Shares by End of Tuesday Included
Chipotle, the Mexican fast-casual dining giant, is making a historic move with its first-ever 50-for-1 stock split. This significant event is set to take place soon, and investors who own Chipotle stock by the end of trading on Tuesday, June 18, will be part of this rare opportunity.
Why It's a Big Deal
This stock split is not just a first for Chipotle, but it also ranks as one of the largest in the history of the stock market. For current shareholders, the stock split means if you hold one share, you'll soon hold fifty. However, the total value of your investment won't change; the value will be spread out over more shares, making each share more affordable.
Company's Objective
The primary goal behind this move, according to Chipotle executives, is to make the company's stock more accessible to a wider audience, including their own employees. Jack Hartung, Chipotle's Chief Financial and Administrative Officer, explained in a statement:
"We believe the stock split will make our stock more accessible to our employees as well as a broader range of investors. With this historic decision, we'll be better able to reward our team members and empower them to have ownership in our company."
Key Dates and Details
When Is Chipotle's Stock Split?
- June 18: Investors need to hold shares by the end of trading.
- June 25: On this date, the shares will be split, meaning for every one share held, investors will receive 49 additional shares.
- June 26: Trading of shares will begin on a post-split basis.
Understanding the Stock Split
Let's break it down with an example:
- Chipotle's Current Stock Price: $3,365.46 (as of Monday)
- Post-Split Price: If the stock were to split at Monday's closing price, each new share would be valued at around $67.
So, while the number of shares you hold multiplies, the overall value of your investment stays the same.
Company Performance
Q1 Earnings Report
- Revenue: $2.7 billion
- Operating Profit Margin: 16.3%
- New Restaurants: 47, including 43 with "Chipotlane" drive-thrus
Chipotle has reported strong earnings for the first quarter, further solidifying their decision for the stock split.
Take Action
If you're an investor or considering becoming one, this might be a prime opportunity to evaluate your portfolio. With the stock becoming more affordable and accessible, it could attract more investors.
Stay tuned and make sure to hold or purchase Chipotle stock by June 18 to be part of this historic stock split.
