Chipotle board approves 50-to-1 stock split

Chipotle’s board of directors approved a 50-1 split of its common stock, following a similar move by Walmart earlier this year.

“This is the first stock split in Chipotle’s 30-year history, and we believe it will make our stock more accessible to a wide range of investors, not just our employees,” said CFO Jack Hartung. said. The company’s stock is currently trading above $2,966 per share.

If shareholders approve the split, which would be the largest in New York Stock Exchange history, in June, it would trade at around $58 a share, based on Wednesday’s range. The company’s stock has risen more than 71% in the past 12 months, outpacing the S&P 500’s 29% rise.

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Hartung said the announcement comes as the company’s stock is at an all-time high, thanks in part to “record revenue, profits and growth.” Shareholders of record as of June 18 will receive additional shares after market close on June 25.

The burrito maker also announced it will provide one-time equity grants to restaurant general managers and all staff members who have been with the restaurant for 20 years or more.

A person works at a Chipotle outlet in Manhattan on February 7, 2022. (Andrew Kelly/Reuters)

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CEO Brian Nicol said the grant is an “additional incentive to continue to deliver great results and share in our financial success.”

An employee unpacks Black Friday sale items in an aisle at a Walmart store in Chicago on November 25, 2015. (Daniel Acker/via Bloomberg/Getty Images)

The move comes after Walmart split its stock 3-for-1 in February to allow more employees to become shareholders. CEO Doug McMillon said this follows the mission of the retailer’s founders.

“Sam Walton believed it was important to keep the stock price at a level where all employees could purchase whole shares rather than fractions,” McMillon wrote.

In total, more than 400,000 employees currently participate in Walmart’s Associate Stock Purchase Plan, which allows them to purchase stock through payroll deduction.

Walmart says it will also offer a 15% company match on the first $1,800 each year.

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