Chipotle's stock is splitting 50-to-1 on Wednesday, a change the company describes as one of the biggest stock splits in the history of the New York Stock Exchange.
The stock split, the first in Chipotle's three-decade history, comes after the shares surged almost 350% during the past five years. As of Tuesday's trading close, the burrito chain was trading at the lofty price of $3,283.04 per share.
Companies typically turn to stock splits as a way to make their equity appear more affordable to investors, some of whom might balk at shelling out more than $3,200 for a single share. On an April conference call with investors, Chipotle Chief Financial Officer John Hartung said he believed the split will also make its shares "more accessible to our employees," as well as a broader range of investors.
When will Chipotle's stock split?
The split goes into effect at the start of trading on Wednesday, June 26. That means investors who owned the stock as of June 18 will receive 49 additional shares for each share they own.
As of 9:30 a.m. Eastern. on Wednesday, Chipotle shares will start trading at $65.66 per share.
What is Chipotle's market cap?
Chipotle's market value is about $90.1 billion, according to FactSet. But the stock split won't change its market capitalization, because the split simply resets the value of each stock at a lower proportional price, keeping the market value at the same level.
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