Chipotle Stock Soars in 2025 After Announcing 50-for-1 Stock Split at $2,985

Chipotle Mexican Grill (CMG) shares surged in early trading on Wednesday following the company’s announcement of a 50-for-1 stock split, a move designed to increase share accessibility for both staff and a wider investor base.

Highlights to Watch

• Chipotle’s board has approved a 50-for-1 stock split, pending shareholder approval at the annual meeting on June 6, 2024.
• Shareholders will receive 49 additional shares for every share held as of the June 18 record date, with the split effective after market close on June 25.
• The company will grant a special one-time equity award to restaurant general managers and employees with over 20 years of service.
• Chipotle’s stock price is expected to find strong support near a five-month trendline, attracting buy-the-dip investors.

Based in Newport Beach, California, Chipotle is executing its first stock split in its 30-year history. With shares closing at $2,797.56 on Tuesday, the split would adjust the price to approximately $55.95 per share, making it more accessible to a broader group of investors.

Pre-market trading saw shares climb 6.7% to $2,985.00, reflecting investor enthusiasm amid Chipotle’s impressive 75% gain over the past year.

Chief Financial Officer Jack Hartung emphasized that this split aims to enhance stock accessibility for employees and investors alike during a period of record-breaking revenues, profits, and growth.

Chipotle reported a 15.4% revenue increase and a 25% rise in adjusted profits in Q4 2023, driven by strong demand for its signature burritos and rice bowls. The company forecasts mid-single-digit same-store sales growth for 2024.

Technically, Chipotle’s share price has rebounded sharply from its 200-day moving average, with today’s projected opening price setting a new all-time high. Investors should watch for continued higher highs and higher lows to confirm bullish momentum. During profit-taking phases, the trendline from October 2023 lows may serve as a key support level for buying opportunities.

Note: This content is for informational purposes only and does not constitute investment advice. The author holds no positions in the mentioned securities as of the article date.

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