Chipotle Mexican Grill Inc. (NYSE: CMG), the nation’s third most valuable publicly traded restaurant chain, today announced that its board of directors approved a 50-for-one split of its common stock, one of the biggest splits in the history of the New York Stock Exchange .
Chipotle shares have about doubled in the past year to $2,797.56 and a $76 billion market cap, making it the most valuable publicly traded company with headquarters in Orange County. In after-hours trading after the announcement was made, the shares climbed another 4.9%
“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,” Chief Financial 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 company plans to seek shareholder approval at its annual meeting scheduled for June 6. If approved, shareholders of record as of June 18 will receive 49 additional shares for each share held, which will be distributed after the market close on June 25. A day later, Chipotle’s shares are expected to begin trading on a post-split basis.
To commemorate this event, 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.
Shares of Chipotle have risen 10-fold since Chief Executive Brian Niccol moved the company’s headquarters from Denver to Newport Beach in 2018.
