Why Are Chipotle Shares Trading Lower Thursday?

Zinger Key Points

Chipotle's 50-for-1 stock split aims to make its shares more accessible to employees and a wider investor base.
Chipotle continues to lead in the food industry through its commitment to responsibly advance in digital and sustainable business practices.

Chipotle Mexican Grill Inc. CMG shares are trading lower Thursday, possibly following the company’s recent 50-for-1 stock split, which became effective after market close on Tuesday.

What Happened: Shareholders of record as of June 18 received 49 additional shares for each share held, marking Chipotle’s first stock split in its 30-year history. This move was aimed at enhancing accessibility to the stock for both employees and a broader range of investors.

Chipotle’s stock began trading on a post-split basis on Wednesday, and while the split is intended to increase accessibility, the stock is currently seeing a decline in early trading. CEO Brian Niccol emphasized the split as a way to celebrate employee achievements and broaden ownership opportunities within the company.

Despite the initial decline, Chipotle remains a prominent player in the food industry. The company operates nearly 3,500 restaurants globally and continues to innovate in digital, technology and sustainable business practices.

CMG Price Action: Chipotle shares were down 5.19% at $62.44 at the time of writing, according to Benzinga Pro.