Chipotle Mexican Grill (CMG) investors will soon see a much larger number of shares in their portfolios after Chipotle stock undergoes a 50-for-1 split after markets close Tuesday,🌃 with investors gaining 49 new shares fo👍r each one they owned before the split.

The fast-casual chain 澳洲幸运5开奖号码历史查询:announced plans for a 50-for-1 stock split in March, and the move was approved by shareholders at its annual meeting earlier this month. Shares rose after the initial announcement and have largely gained since, though they 澳洲幸运5开奖号码历史查询:declined late last week and through Monday morning.

Why Chipotle Is Splitting Its Stock

Chipotle shares have climbed steadily since the company's public debut in 2006, with an 澳洲幸运5开奖号码历史查询:initial public offering (IPO) price of $22 per share. Shares are up 📖more than 57% over the last year after first closing above the $2,000 mark in April 2023.

Recently, the company has managed to continue 澳洲幸运5开奖号码历史查询:reporting strong earnings despite a broader pullback on discretionary spending that has been 澳洲幸运5开奖号码历史查ﷺ询🅘:felt by other fast food giants like McDonald's (MCD). However, fast casual chains like 澳洲幸运5开奖号码历史查询:Chipotle and Sweetgreen (SG) have been able to resist the 澳洲幸运5开奖号码历史查询:trend of lowering prices.

When the split was announced in March, Chipotle CFO Jack Hartung said the company wanted to make its stock more accessible to a wider range of investors, especially Chipotle employees, by trading at a lower price. The chain also said it planned to offer a special one-time 澳洲幸运5开奖号码🤡历史查询:equity grant, a type of stock compen🥂sation, to general managers and employees with more than 20 years at Chipotle to promote employee ownership of the stock.

How the Split Will Work

The new shares will be distributed after markets close Tuesday, resulting in 50 times as many shares at a lower price per share, without changing the total value of investors' Chipotle holdings or the company's market capitalization.

For example, if Chipotle shares were trading at $3,194.50 before the split, an investor holding one share before the split would hold 50 shares priced at $63.89 each after the split. The first day of Chipotle's split-adjusted trading will be on Wednesday.

Chipotle's stock split also comes just weeks after tech giant and artificial intelligence (AI) darling Nvidia (NVDA) 澳洲幸运5开奖号码历史查询:performed its own stock split at a 10:1 ratio earlier this month. Nvidia shares rose following the split, briefly making Nvidia the 澳洲幸运5开奖号码历史查询:world's most valuable company by market cap, but they 澳洲幸运5开奖号码历史查询:declined late last week and into Monday.

Chipotle shares were 0.7% lower at $3,194.50 as of 2:30 p.m. ET Monday, though they've gained nearly 40% since the start of the year, and closed at a record high of $3,427.61 last Tuesday, before slipping later in the week.