Investors who hold Chipotle stock at the end of trading Tuesday will add more than chips and guac to their portfolio.
Shareholders of record on June 18 are set to be included in the company’s upcoming 50-for-one stock split.
The split is a first for the company and is one of the largest in the history of the stock market. Chipotle executives said the split is aimed at improving the stock’s affordability.
“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. “With this historic decision, we’ll be better able to reward our team members and empower them to have ownership in our company.”
Chipotle’s stock split almost here: Time to buy now before it happens?
Here’s what you need to know about Chipotle’s stock split:
When is Chipotle’s stock split? How does it work?
Investors who hold Chipotle stock by the end of trading Tuesday, June 18 will have their shares split.
Those who hold shares will receive 49 additional shares for every one held after the close of trading on June 25. Share prices are divided on an equivalent basis, so the split does not directly change an investment’s total dollar value.
Trading of shares on the post-split basis will begin June 26.
Chipotle stock price
Chipotle’s stock closed at $3,365.46 on Monday, up 2.87% on the day.
Hypothetically, if the stock were to split at Monday’s closing price, it would be valued at a little over $67 per share.
Chipotle reports strong Q1 earnings
The fast-casual stalwart 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.
This article originally appeared on USA TODAY: Chipotle stock split date approaching: What is it and who’s affected?
Source Agencies
