CHIPOTLE SHAREHOLDER APPROVAL PAVES WAY FOR HISTORIC 50-FOR-1 STOCK SPLIT

Rhea-AI Summary

Chipotle Mexican Grill (NYSE: CMG) announced a historic 50-for-1 stock split approved by shareholders during the annual meeting. This is one of the largest stock splits in NYSE history. Shareholders of record as of June 18, 2024, will receive 49 additional shares for each share held, and the post-split trading will commence on June 26, 2024. The stock split aims to make shares more accessible to employees and a wider range of investors. Additionally, Chipotle will offer a special equity grant to restaurant general managers and crew members with over 20 years of service.

Positive

• Shareholders approved a historic 50-for-1 stock split, increasing share accessibility.
• Post-split trading begins on June 26, 2024.
• Special equity grant for general managers and long-serving crew members, recognizing strong performance.

Negative

• Potential shareholder dilution due to a significant increase in the number of shares.
• No mention of financial impacts such as costs associated with the stock split.

• This is one of the biggest stock splits in New York Stock Exchange (NYSE) history
• The record date is June 18 and the stock will begin trading on a post-split basis on June 26

NEWPORT BEACH, Calif., June 6, 2024 /PRNewswire/ -- Chipotle Mexican Grill, Inc. (NYSE: CMG) today announced that during its annual meeting, its shareholders approved an increase in the number of authorized shares of its common stock, which is necessary to facilitate the company's 50-for-1 stock split. This will be one of the biggest stock splits in New York Stock Exchange (NYSE) history.

Shareholders of record as of June 18, 2024 will receive 49 additional shares for each share held, which will be distributed after market close on June 25, 2024. Chipotle's shares will begin trading on a post-split basis at the market open on Wednesday, June 26, 2024.

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

To commemorate this special event and in recognition of the company's strong performance, Chipotle announced a special one-time equity grant for all restaurant general managers as well as crew members with more than 20 years of service.

About Chipotle
Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. There are nearly 3,500 Chipotle restaurants in the United States, Canada, the United Kingdom, France, Germany, and Kuwait and it is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe. Chipotle is ranked on the Fortune 500 and is recognized on Fortune's Most Admired Companies 2024 list and Time Magazine's Most Influential Companies. With over 120,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit WWW.CHIPOTLE.COM.

Forward-Looking Statements
Certain statements in this press release, including statements regarding the expected timing and impact of the stock split and the one-time equity grant and statements that use words such as "expects", "intends" and "believes," are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on information currently available to us and we assume no obligation to update them. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in this press release, including the risk that shareholders will not approve the increase in the number of authorized shares of our common stock, the stock split is prevented from taking effect or is delayed due to legal or regulatory constraints and other risk factors described from time to time in our SEC reports, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, all of which are available on the investor relations page of our website at ir.Chipotle.com.

 

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SOURCE Chipotle Mexican Grill

FAQ

What is the date for Chipotle's 50-for-1 stock split?

The record date is June 18, 2024, and post-split trading begins on June 26, 2024.

How many additional shares will Chipotle shareholders receive?

Shareholders will receive 49 additional shares for each share held.

When will Chipotle's shares begin trading on a post-split basis?

Trading on a post-split basis will start on June 26, 2024.

What special grant is Chipotle offering to employees?

Chipotle is offering a one-time equity grant to restaurant general managers and crew members with over 20 years of service.

Why is Chipotle conducting a 50-for-1 stock split?

The stock split aims to make shares more accessible to employees and a broader range of investors.