Largest Stock Split in History: 49 New Shares Split From One Existing Share; FMCG Issues Major Announcement Ahead of Split

Prior to executing the largest stock splits in NYSE history, the FMCG behemoth Chipotle revealed its first quarter profits for 2024. During the January–March 2024 quarter, the company’s comparable sales climbed by 7%, led by a 5% rise in transactions while margins grew. In Q2 of 2024, Chipotle will divide into a 50:1 ratio. On the basis of the current one equity share, the stock split ratio will result in up to 49 additional shares.

Chipotle’s Earnings: The company’s overall sales in the first quarter was $2.7 billion, up 14.1% from the same period in 2023, according to the press release. New restaurant openings, a 7.0% rise in comparable restaurant sales as a result of greater transactions of 5.4% and an increase in average checks of 1.6% were the main drivers of the growth in total income. 36.5% of the total income from food and beverages came from digital sales.

In the first quarter of 2023, net income was $291.6 million, or $10.50 per diluted share, while in the first quarter of 2039 it was $359.3 million, or $13.01 per diluted share. After accounting for the $0.36 after-tax effect of an increase in legal reserves, adjusted net income and adjusted diluted earnings per share for the first quarter of 2024 were $369.3 million and $13.371, respectively.

According to Chipotle, they added 47 new restaurants in the first quarter, including one in Chipotle. These models are still doing well and improving visitor convenience and access while also driving up sales, profitability, and returns for new restaurants.

“We had another outstanding quarter driven by our improvement in throughput and successful marketing initiatives, including Braised Beef Barbacoa and Chicken Al Pastor, which drove strong sales and transactions,” Chipotle Chairman and CEO Brian Niccol said. We are seeing results from our emphasis on producing great food, creating amazing people, and achieving high throughput, and these things give me hope that we will meet our long-term goal of more than doubling our business in North America and growing globally.”

Chipotle also provided a forecast for the next year. It is anticipated that comparable restaurant sales growth will be in the mid- to high-single-digit range for the whole year. Over 80% of the 285–315 new restaurants that the business expects to build will be Chipotles. Finally, before discrete items, the anticipated underlying effective full-year tax rate is between 25% and 27%.

Chipotle, a NYSE-listed company, is devoted to creating a better world via the provision of authentic, classically-cooked cuisine that is sourced sustainably and free of artificial colors, flavors, or preservatives. As of March 31, 2024, Chipotle had approximately 3,500 locations in the US, Canada, UK, France, and Germany. Notably, it is the only restaurant chain of its caliber to own and run every location in North America and Europe.

Largest Stock Split Ever: It has been 30 years since Chipotle announced its first stock split. Chipotle decided to divide its shares since it is at an all-time high thanks to record growth, profitability, and sales.

The largest-ever subdivision on the NYSE was announced by Chipotle, after thirty years without a stock split. It is in the ratio of 50:1, meaning that for every current share you own, you get 49 new shares, making a total of 50 shares in your portfolio.

This is the first stock split in Chipotle’s 30-year history, and we think this will make our shares more accessible to workers as well as a wider variety of investors,” said Jack Hartung, Chief Financial and Administrative Officer, earlier.

In addition, Hartung said that the company’s stock is at an all-time high right now due to record growth, profitability, and sales.

According to a statement released by Chipotle, if the change to the Certificate of Incorporation is accepted, stockholders who were registered as of June 18, 2024, would get 49 extra shares for each share they own. These shares will be issued on June 25, 2024, after the closing of the market. On June 26, 2024, a post-split basis of Chipotle’s shares is anticipated to open for trading in the market.

In addition, Chipotle announced a unique one-time equity reward for all restaurant general managers and staff members with more than 20 years of service to honor this momentous occasion and recognize the company’s outstanding achievements.