Chipotle Mexican Grill Stock Is Sizzling Wednesday: What's Going On?

Zinger Key Points
  • Chipotle announces that its board approved a 50-for-one split of its common stock.
  • The company says it intends to seek shareholder approval for the stock split at its upcoming annual meeting on June 6.

Chipotle Mexican Grill Inc CMG shares are rising Wednesday after the company announced its first ever stock split.

What Happened: After the market close on Tuesday, Chipotle announced that its board approved a 50-for-one split of its common stock. The company said it intends to seek shareholder approval for the stock split at its upcoming annual meeting on June 6.

“This is the first stock split in Chipotle’s 30-year history, and we believe this will make our stock more accessible to employees as well as a broader range of investors,” said Jack Hartung, chief administrative officer and CFO of Chipotle.

“This split comes at a time when our stock is experiencing an all-time high driven by record revenues, profits, and growth.”

Chipotle also announced a special one-time equity grant for all restaurant general managers as well as crew members with more than 20 years of service.

If the stock split is approved, shareholders of record as of June 18 will receive 49 additional shares for each share held after the market close on June 25. Chipotle shares are expected to begin trading on a post-split basis on June 26.

See Also: Chipotle, Coinbase, JPMorgan, Planet Fitness, Tesla: Why These 5 Stocks Are On Investors’ Radars Today

CMG Stock Prediction 2024

Chipotle Mexican Grill’s revenue growth in FY23 was 14.32%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.6%, growing 1.6% from last year. The unemployment rate was most recently reported as 3.9%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Chipotle Mexican Grill stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

CMG Price Action: Chipotle shares are hitting new all-time highs on Wednesday. The stock was up 5.94% at $2,963.66 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Chipotle.

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