Chipotle gets closer to massive 50-for-1 stock split

By Bill Peters

Fast-casual Mexican chain says shareholders approved increase in share count needed to clear way for split

Chipotle Mexican Grill Inc. on Thursday said that shareholders at its annual meeting approved an increase to its authorized share count - a move needed to carry out its plans for a massive 50-for-1 stock split.

The Mexican fast-casual restaurant chain said that shareholders of record as of June 18 would get 49 extra shares for each share they held after the close of trading on June 25. Post-split trading for Chipotle (CMG) will start the following day.

Chipotle has said the split would make the stock easier to buy. Shares have run 41.1% higher so far this year and were trading at $3,167 apiece.

The stock was up 0.6% on Thursday.

New limited-time menu items, price increases and a focus on digital ordering and on handling orders more quickly have helped Chipotle's financials. But some analysts worry that the higher prices could keep lower-income diners away.

Chipotle on Thursday also said it would offer a one-time equity grant to all restaurant managers and crew who had been with the chain for more than 20 years.

"We believe the stock split will make our stock more accessible to our employees as well as a broader range of investors," Chipotle Chief Financial Officer Jack Hartung said in a statement. "With this historic decision, we'll be better able to reward our team members and empower them to have ownership in our company."

Chipotle, which first announced the stock split in March, has said it would be "one of the biggest stock splits in New York Stock Exchange history." A much bigger company on the exchange, Warren Buffett's Berkshire Hathaway Inc. (BRK.A), carried out a 50-for-1 stock split in 2010.

-Bill Peters

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06-06-24 1227ET

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