Chipotle Stock Splits and Future Outlook

Chipotle Mexican Grill has a history of stock splits, with the company's first split occurring in 2013. This split increased the number of shares outstanding, making the stock more affordable for individual investors.

In 2018, Chipotle split its stock again, this time at a 3-for-1 ratio. This move was seen as a way to boost investor confidence and make the stock more attractive to a wider range of investors.

The company's stock performance has been impressive since the last split, with a significant increase in value. As a result, some investors are speculating about the possibility of another stock split in the near future.

Chipotle's stock split is a 50-for-1 move, one of the biggest in NYSE history. This means that CMG shareholders will get 49 additional shares for every share they own, once the split is effective.

The split won't change the company's fundamentals or market valuation, it's just like breaking a $50 bill into 50 $1 bills. This will make the stock more attractive to retail investors and Chipotle employees participating in the company's stock purchase plan.

Based on Chipotle's June 25 close at $3,283, the 50-for-1 stock split will bring the share price to a little over $66.

Explore further: What Are Stock Splits

Chipotle's proposed 50-for-1 stock split is a rare occurrence in U.S. stock history. Typically, stock splits are smaller ratios like 2-for-1 or 3-for-1.

In the 47 years that Silverblatt has been at S&P, he has never seen a split this large. Something this size is extremely unusual.

Other big companies like Alphabet and Amazon have made sizeable splits in recent years, but even they only went as high as a 20-for-1 split in 2022.

Chipotle's stock split is a 50-for-1 move, the largest in the company's history.

This means that if you own one share of Chipotle stock, you'll get 49 additional shares once the split is effective. The price of Chipotle's stock will soon cost just $66 after the split, down from its current price of around $3,283.

The split will make Chipotle's stock more affordable for smaller investors, including retail investors and employees participating in the company's stock purchase plan. These individuals were previously unable to buy Chipotle stock at its four-figure share price.

The stock split won't change anything about Chipotle's fundamentals or market valuation, but rather is similar to making change.

A different take: Why Share Split

Chipotle is proposing a 50-for-1 stock split, which would make their shares more affordable and attractive to a wider pool of investors.

The company believes this move will increase accessibility and open up a wider pool of investors, potentially boosting their stock's value.

Chipotle's stock has been on a tear, with shares up over 80% in the past year.

This split comes at a time when Chipotle's stock is experiencing an all-time high driven by record revenues, profits, and growth.

Chipotle reported net income of $1.23 billion in 2023, a significant increase from the previous year's $899.1 million.

Consider reading: How to Buy Stocks and Shares

Chipotle's decision to consider a 50-for-1 stock split is a strategic move to make their stock more accessible to a wider range of investors.

The company believes that a lower stock price will make it easier for more people to buy in, potentially opening up a new pool of investors.

Chipotle's stock has been experiencing an all-time high, driven by record revenues, profits, and growth.

This growth is reflected in their recent financial reports, which showed a 14.5% increase in total revenue compared to 2022.

Their net income for 2023 was $1.23 billion, a significant increase from $899.1 million the previous year.

This boost in earnings is likely to contribute to the company's decision to consider a stock split.

Chipotle's stock has seen a remarkable 80% increase in value over the past year, making it an attractive option for investors.

This surge in value is a testament to the company's successful financial performance.

Check this out: Do You Make Money When a Stock Splits

Chipotle's stock split will be effective after the market closes on June 25 for CMG shareholders of record as of June 18, subject to the approval of CMG shareholders on June 6.

The proposal will be put to a shareholder vote on June 6, and if approved, CMG shareholders will receive 49 additional shares for every share they own.

CMG shareholders of record as of June 18 will receive 49 additional shares for every share owned, after market close on June 25.

Chipotle's stock will start trading on a post-split basis starting June 26.

Broaden your view: History of Us Stock Market

Chipotle stock has been getting a thumbs up from Wall Street, with 21 out of 35 analysts covering the stock saying it's a Strong Buy. This consensus Buy rating is a strong endorsement of Chipotle's growth prospects.

Deutsche Bank analyst Lauren Silberman is one of the many analysts who are bullish on Chipotle stock. She reiterated her Buy rating on the stock, citing Chipotle's fundamental strength and growth outlook. Silberman has high conviction in Chipotle's ability to continue outperforming the market.

Analysts are projecting strong revenue growth for Chipotle, with a 14% increase in revenue growth expected for 2024 and 2025. This growth is driven by Chipotle's ability to expand its restaurant footprint and international presence.