Breaking News: Chipotle Soars with Groundbreaking 50-for-1 Stock Split—Experts Predict Major Growth Ahead!

Chipotle Mexican Grill (CMG) jumped in premarket trading Wednesday after the casual dining chain operator announced that its board of directors approved a 50-for-1 stock split to make its stock more accessible to staff and a broader range of investors.

The Newport Beach, California-based company said Tuesday night that it will seek shareholder approval for the split, the first in the Mexican restaurant chain's 30-year history, at its annual meeting scheduled for Sept. 6. of June.

If successful, shareholders will receive an additional 49 shares for each Chipotle share they own as of the June 18 record date, with the additional shares distributed after the closing bell on June 25. Shares are scheduled to begin trading after the split the following day. .

Based on Tuesday's closing share price of $2,797.56, the split would put the shares at about $55.95 each. Chipotle shares, which have gained about 75% over the past 12 months, rose 6.7% to $2,985.00 three hours before Wednesday's opening bell.

In addition to the split, the company said it plans to offer a one-time special equity grant (a type of incentivized stock compensation) for general managers and restaurant employees with more than 20 years of service.

“This will make our stock more accessible to employees, as well as a broader range of investors,” Chipotle Chief Financial Officer (CFO) Jack Hartung said in a press release. “This split comes at a time when our shares are experiencing an all-time high driven by record revenues, profits and growth,” he added.

In the fourth quarter, Chipotle reported a 15.4% increase in revenue from a year earlier, while its adjusted profit in the period grew 25%, driven by strong demand for its burrito and entree menu options. rice. By 2024, Chipotle anticipates mid-single digit same-store sales percentage growth.

Since a pullback to the 200-day moving average, Chipotle's stock price has trended sharply higher, and today's projected opening price puts the stock at a new high. If the stock continues to rise, expect the price to continue making higher highs and higher lows to confirm the bullish momentum. During profit-taking periods, watch for a trend line dating back to last year's mid-October low as a potential area on the chart where investors can look for buying opportunities on dips.

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As of the date of writing this article, the author does not hold any of the above securities.