Chipotle opened 47 new restaurants with Chipotlane drive-thrus in Q1 of 2024
Chipotle to conduct historic 50-for-1 stock split
Company reported $2.7 billion in revenue and a 16.3% operating profit margin in Q1 of 2024
Expected to raise earnings per share by about 53% for 2024 compared to 2023
Share price has soared over 14,000% since IPO in 2006
In a significant development for the fast-casual restaurant industry, Chipotle Mexican Grill is set to conduct its first-ever 50-for-1 stock split after experiencing remarkable growth since its initial public offering (IPO) in 2006. The historic split comes as other top companies such as Nvidia have also recently announced stock splits. Chipotle's share price has soared more than 14,000% from its IPO price, and the company reported $2.7 billion in revenue and a 16.3% operating profit margin in Q1 of this year.
The stock split will take effect on June 25th after the close of trading. Shareholders who hold Chipotle shares as of June 18th will receive 49 additional shares for every one held, making the stock more accessible to a broader range of investors and employees. Despite the increased number of shares, the total dollar value of an investment remains unchanged.
In Q1, Chipotle opened 47 new restaurants with 43 locations featuring 'Chipotlane' drive-thrus. The company is expecting to raise its earnings per share by about 53% for 2024 compared to 2023, as it continues to grow its business and expand its menu offerings.
Despite the recent surge in stock prices, Chipotle's management remains focused on long-term growth and maintaining operational excellence. The company has faced challenges in the past related to food safety and labor practices but has worked diligently to address these issues. As a result, Chipotle is well-positioned for continued success in the highly competitive fast-casual restaurant market.
