Chipotle Mexican Grill (CMG.N), made the announcement on Tuesday that its board of directors had given its approval to a split of its common shares that would be 50 percent for one.
Because of this piece of news, the shares of the burrito restaurant went up by around seven percent over the extended trading period.
The corporation, which has its headquarters in California, has announced that the stock split will be subject to approval from shareholders at the upcoming annual meeting, which is scheduled to take place on June 6th.
In the event that the proposal is approved, owners who were of record as of June 18 will be entitled to acquire 49 additional shares for each share that they already possess.
As part of what the company has described as one of the most significant stock splits in the history of the New York Stock Exchange (NYSE), it is anticipated that the shares will start trading on a post-split basis at the opening of the market on June 26.
With a closing price of $2,797.56 on Tuesday, the company's shares reached a new all-time high. Over the course of the previous year, the price of the company's shares had climbed by more than 70 percent.
The stock of Chipotle has been steadily climbing ever since the company surpassed the expectations of the market for quarterly profits and sales in the month of February.
As a result of the fact that its customers, who were reasonably wealthy, continued to purchase its burritos and rice bowls despite the fact that the costs of the items on the menu had grown, this was made feasible.
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