Chipotle Mexican Grill announced late Tuesday that its board has approved a 50-for-1 stock split. Chipotle stock rose to a record high on Wednesday, but pared gains.
Shareholders will vote on the Chipotle stock split at the annual meeting on June 16.
Chipotle stock rose 3.5% to 2,895 on Wednesday, off the morning's record 3,023.98.
A split can sometimes spur buying as investors see the stock as "cheaper," even though their ownership stake is no different than before. Stock splits do make options trading easier.
A 50-for-1 stock split is unusually large.
In 2022, Google parent Alphabet announced a 20-for-1 split.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
