Chipotle’s board announced that it approved a 50-for-1 stock split on Tuesday, which the company called one of the biggest stock splits in New York Stock Exchange history.
That means a single share of Chipotle, worth $2,797.56 as of Tuesday’s stock market close, will be split into 50 smaller shares if the move wins shareholder approval, effectively rolling back the cost of investing in the company.
Companies often decide to split their stocks when they believe the price per share is too high for average investors. In a statement, Chipotle’s chief financial officer, Jack Hartung, said the split would make the stock more “accessible.”
“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 Hartung.
The split is not yet a done deal, though. The company will put the stock split decision up for a shareholder vote on June 6. If it is approved, Chipotle’s cheaper, post-split shares will begin trading at the market open on June 26.
Investors seemed to cheer on the potential split — Chipotle’s stock rose nearly 5% in after-hours trading on Tuesday.
The announcement comes at a time when Chipotle’s shares are trading at all-time highs.
