Chipotle Mexican Grill (CMG) stock may be heading for a 50-for-1 stock split in June. The fast-casual chain's board of directors approved the split, but shareholders still need to vote on the split.
Yahoo Finance Retail reporter Brooke DiPalma joins Wealth! How the stock split works, what it means for current Chipotle shareholders, and how employees can take advantage of these benefits to own a piece of the company. I will explain how it can be used.
For more expert insights and the latest market trends, click here to watch the full episode of Wealth.
Editor's note: This article was written by luke carberry morgan.
video transcript
Brad Smith: So you want to talk about stock splits. You are not alone. I hear that more and more companies are making announcements. And investors are now looking forward to a 50-1 split in Chipotle. But what exactly does this mean for shareholders and new investors looking to get in on the action?
Yahoo Finance reporter Brooke DiPalma tells us more about this.
Brooke DiPalma: Good morning, Brad. For novice investors who don't know what a stock split is, let's start there. As a result, companies typically conduct stock splits to make stock more available at lower prices to employees and a wider range of investors.
Now, this usually happens even when companies are doing well. Chipotle's CEO told Yahoo Finance that the company has achieved what it set out in its vision statement and is making it a reality. The company is currently at an all-time high with record revenue, profits, and growth.
And now, as you can see, the stock price is hovering above $2,800 per share. The stock split has now been approved by Chipotle's board of directors, but must be approved by shareholders in June. Thereafter, trading will begin on a post-split basis on June 26th.
But Chipotle isn't alone here. Other companies are doing this too. Just recently, Walmart announced a 3-for-1 stock split. Company executives also said they want to allow employees to own a portion of the company. Google's parent companies Alphabet and Amazon also announced a 20-for-1 stock split in 2022.
And if you're an employee of Chipotle or any other company and want to take action here, talk to your employer first. See if you can learn more about market opportunities like this.
And, according to MetLife, 54% of its employees actually offer financial planning and education workshops. So start asking questions to your employer first. Back to the topic, Brad.
Brad Smith: Brooke, I want 50 pieces of chicken in one burrito bowl. That's all I'm looking for there. If so, there's no need to keep saying add chicken.
Anyway, Brooke, thank you so much for solving this problem for us. appreciate.
