Chipotle Mexican Grill Inc (CMG) is up 7.0% in extended hours after announcing plans of a 50-for-1 stock split.
Why is $CMG opting for a stock split?
The international chain of fast casual restaurants will seek shareholder approval for the stock split at its annual meeting in June, as per its press release on Tuesday. $CMG will trade on split-adjusted basis from June 26th provided that it does secure that approval. According to Jack Hartung – the chief financial officer of Chipotle Mexican Grill:
We believe this will make our stock more accessible to employees as well as a broader range of investors.
Last month, the New York listed firm posted its earnings report for the fourth quarter that handily topped Street estimates. Wall Street currently has a consensus “overweight rating on Chipotle stock.
Chipotle shares are at an all-time high
It’s the first time that Chipotle Mexican Grill has announced a stock split since its inception in 1993. $CMG has rallied a whopping 80% over the past twelve months to an all-time high of $1,960.CFO Hartung attributed that outperformance to “record revenues, profits, and growth” in the press release today. Chipotle recently announced plans of going on a hiring spree this spring (read more).On Tuesday, the $77 billion company based out of Newport Beach, California announced a “special one-time equity grant” as well for its crew members and general managers who have served for over 20 years.Earlier this week, Benzinga options scanner indicated that wealthy investors are bullish on shares of Chipotle Mexican Grill Inc.More By This Author:Deepmind Cofounder To Lead A New AI Unit At Microsoft Nvidia Just Revealed The ‘World’s Most Powerful’ AI Chip Adobe Stock Tanks 10% As Q1 Earnings Beat But Guidance Disappoints
