Chipotle Mexican Grill (CMG) has given long-term investors plenty to cheer about. Over the past 15 years, Chipotle stock has averaged an annual gain of 28%, easily outpacing the S&P 500's 14.8% total return (price change plus dividends). And the burrito chain's next move could encourage a new crop of folks to look CMG's way.
After the close on Tuesday, June 25, Chipotle underwent a massive 50-for-1 stock split. And CMG stock will begin trading on a post-split basis at the open on Wednesday, June 26.
This marks the first stock split for CMG and one of the biggest in the history of the New York Stock Exchange (NYSE). The split "will make our stock more accessible to employees as well as a broader range of investors," Jack Hartung, chief financial officer of Chipotle, said when the news was first announced back in March. "This split comes at a time when our stock is experiencing an all-time high driven by record revenues, profits, and growth."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Indeed, in its first-quarter earnings report, Chipotle disclosed 14.1% year-over-year revenue growth to $2.7 billion. Earnings surged 37% to $13.37 per share. For the second quarter, analysts expect revenue to jump 16% and earnings per share to rise by 23%.
What does the Chipotle stock split mean?
As for Chipotle's stock split, it won't change anything about the company's fundamentals or market valuation. Rather, a stock split is similar to making change. In CMG's case, it will be equivalent to breaking a $50 bill into 50 $1 bills.
Based on CMG's June 25 close at $3,283, the 50-for-1 stock split will bring the share price to a little over $66. This should make it much more attractive for retail investors, as well as Chipotle employees participating in the company's stock purchase plan, who are unable to buy CMG stock at its four-figure share price.
Walmart (WMT) underwent a similar stock split earlier this year. The retailer cited the importance of keeping its "share price in a range where purchasing whole shares, rather than fractions, was accessible to all of our associates" as the reason behind its 3-for-1 stock split.
Nvidia (NVDA) also split its stock recently, while fellow chipmaker Broadcom (AVGO) also announced a major stock split in its fiscal second-quarter earnings report.
Wall Street says Chipotle stock's still a buy
After the news initially broke, Deutsche Bank analyst Lauren Silberman reiterated her Buy rating on Chipotle stock. "CMG has been among the best-performing restaurant stocks and we expect fundamental strength to continue to drive outperformance," Silberman writes in a note to clients.
The analyst adds that she has high conviction in Chipotle's near- and long-term growth outlooks. She believes "a premium multiple is warranted, noting there is scarcity value for a high-quality U.S. company with a clean balance sheet, strong fundamentals and potential upside to numbers."
Silberman is hardly alone in her bullish outlook toward the consumer discretionary stock. Of the 35 analysts covering Chipotle stock tracked by S&P Global Market Intelligence, 21 say it's a Strong Buy, two have it at Buy, 11 rate it a Hold and one has it at Strong Sell. This works out to a consensus Buy rating and with high conviction.
Related Content
-
December Fed Meeting: Live Updates and CommentaryThe December Fed meeting is one of the last key economic events of 2025, with Wall Street closely watching what Chair Powell & Co. will do about interest rates.
-
This Is Why Investors Shouldn't Romanticize BitcoinInvestors should treat bitcoin as the high-risk asset it is. A look at the data indicates a small portfolio allocation for most investors would be the safest.
-
I'm a Federal Benefits Pro: I Answer These 2 Questions a LotMany federal employees ask about rolling a TSP into an IRA and parsing options for survivor benefits, both especially critical topics.
-
December Fed Meeting: Live Updates and Commentary
The December Fed meeting is one of the last key economic events of 2025, with Wall Street closely watching what Chair Powell & Co. will do about interest rates.
-
Why Investors Shouldn't Romanticize Bitcoin, From a Financial Planner
Investors should treat bitcoin as the high-risk asset it is. A look at the data indicates a small portfolio allocation for most investors would be the safest.
-
I'm a Financial Pro Focused on Federal Benefits: These Are the 2 Questions I Answer a Lot
Many federal employees ask about rolling a TSP into an IRA and parsing options for survivor benefits, both especially critical topics.
-
Private Credit Can Be a Resilient Income Strategy for a Volatile Market: A Guide for Financial AdvisersAdvisers are increasingly turning to private credit such as asset-based and real estate lending for elevated yields and protection backed by tangible assets.
-
5 RMD Mistakes That Could Cost You Big-Time: Even Seasoned Retirees Slip UpThe five biggest RMD mistakes retirees make show that tax-smart retirement planning should start well before you hit the age your first RMD is due.
-
I'm a Wealth Adviser: My 4 Guiding Principles Could Help You Plan for Retirement Whether You Have $10,000 or $10 MillionRegardless of your net worth, you deserve a detailed retirement plan backed by a solid understanding of your finances.
-
A Retirement Triple Play: These 3 Tax Breaks Could Lower Your 2026 BillGood news for older taxpayers: Standard deductions are higher, there's a temporary 'bonus deduction' for older folks, and income thresholds have been raised.
-
If You're Retired or Soon-to-Be Retired, You Won't Want to Miss Out on These 3 OBBB Tax BreaksThe OBBB offers some tax advantages that are particularly beneficial for retirees and near-retirees. But they're available for only a limited time.
