Chipotle shareholders will have more than queso in their accounts as the company’s stock split is set to take effect after the close of trading Tuesday.
The 50-for-one split is one of the largest in Wall Street history and is aimed at making the fast-casual titan’s shares more affordable, according to Chipotle officials.
“We believe the stock split will make our stock more accessible to our employees as well as a broader range of investors,” Jack Hartung, Chipotle’s chief financial and administrative officer, said in a statement.
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The move is a sign of strength as other long beloved restaurant chains face harsh headwinds and store closures.
Here’s what you need to know about the Chipotle stock split.
When was Chipotle’s stock split recorded?
Investors were required to hold shares by the end of the trading day on June 18 to be included in the split.
Those who hold shares will receive 49 additional shares for every one held after the close of trading on Tuesday. Share prices are divided on an equivalent basis, so the split does not directly change an investment’s total dollar value.
Trading on the split basis will begin at start of trading Wednesday.
Chipotle stock
Chipotle’s stock closed at $3,193.74 per share on Monday. If the price were to be the same at the end of trading Tuesday, the stock would be valued at $63.87 per share.
The stock has been on a rollercoaster since the split was approved on June 6, hitting a high of $3,427.61 per share on June 18 before tumbling below the $3,200 mark Monday.
Chipotle reported $2.7 billion in revenue and a 16.3% operating profit margin when it announced first-quarter results in April.
The company opened 47 restaurants in the quarter with 43 locations having “Chipotlane” drive-thrus.
