Chipotle Mexican Grill (CMG) is planning to split its stock for the first time.
The popular quick service restaurant chain that specializes in Mexican cuisine has announced that its board of directors has approved a 50-for-1 stock split to be executed in June of this year.
The stock split still needs to be approved by Chipotle’s shareholders. The company said it will seek shareholder approval at its annual meeting on June 6.
If approved, the stock split will be the first ever for Chipotle, which went public in 2006 and whose shares are currently trading at $2,797.56 U.S., putting them out of reach for many retail investors.
The 50-for-1 stock split by Chipotle would be one of the biggest ever executed on the New York Stock Exchange. The split will lower Chipotle’s stock to about $56 U.S. a share based on the current price.
Analysts have for years called on Chipotle to split its stock as a way to make the shares more accessible to investors.
If approved at the annual meeting, shareholders of record on June 18 will receive 49 additional shares for each one they own, with the distribution taking place after markets close on June 25.
Chipotle’s stock is expected to begin trading on a split adjusted basis when the market opens on June 26.
The stock of Chipotle is up 5% today (March 20) on news of the split. Prior to today, the company’s share price had risen 74% in the last 12 months.
