Chipotle’s Massive Stock Split!

Mexican-style fast food chain Chipotle has announced their first stock split in the company’s 30-year history and it’s MASSIVE!

Chipotle’s board has given the go ahead for a MASSIVE 50 to 1 stock split. That’s one of the largest stock splits in the history of the New York Stock Exchange.

We’ve talked about stock splits before, but just a quick recap. It’s simply splitting one share into multiple shares. In this case, one share is being split into fifty. Think about it this way. If you have a $50 bill and five $10 bills, which is more? That’s right, they’re both the same. The only difference is with five $10 bills, you may be able to make change more easily. 

As I’m recording on May 13, Chipotle’s stock price is US$3,205 per share. That’s verryyy expensive and makes the stock inaccessible to a lot of potential investors.

The 50-to-one split will bring the share price down to around US$64.

According to Chipotle, making the stock more affordable for employees and a wider range of investors is top priority. 

Chipotle shares have steadily been on the rise since its quarterly report in February.  The report showed the company exceeding market estimates for quarterly profit and sales.

The stock is up almost 43% since the start of the year. 

Now the stock split still needs to be approved by shareholders. If it’s approved, Chipotle’s cheaper shares will begin trading on June 26.

And that’s the bottom line.