50:1 Biggest Ever Stock Split Done: BUY OR SELL This Monster FMCG Stock After Historic Split; New Target Price

Mega FMCG company, Chipotle Mexican Grill started to trade in its post-split form which was by the ratio of 50:1, biggest ever in the history of NYSE. Post split, Chipotle is trading lower by nearly 6% on NYSE during trading hours of June 27. Nonetheless, the stock is still up by 39% YTD. After the stock split, Chipotle is poised to accelerate further.

Chipotle carried its first stock split in its 30 years of history, and the company's Chief Financial and Administrative Officer believed that the move will give more accessibility to employees as well as broader range of investors.

The split was carried due to the stock experiencing an all-time high driven by record revenues, profits, and growth.

The record date to determine eligible shareholders was fixed on June 18, 2024. Hence, shareholders who held Chipotle stock as of June 18 received 49 additional shares for each share held. The distribution was carried on June 25, and Chipotle eventually traded post-split from June 26 onward. Chipotle is now below $65 per share.

In its statement on June 26, Chipotle said, after market close yesterday, shareholders of record as of June 18, 2024, received 49 additional shares for each share held. To commemorate this special event and in recognition of the company's strong performance, Chipotle will offer a special one-time equity grant to all restaurant general managers as well as crew members with more than 20 years of service.

"We celebrate the remarkable achievements of our employees by increasing ownership accessibility for team members and new investors," said Brian Niccol, Chairman and Chief Executive Officer, Chipotle. "We're excited for our employee shareholders to participate in our company's financial success as they help further our mission to Cultivate a Better World."

Wedbush analysts wrote in a recent note that Chipotle is "poised to sustain accelerated market share gains" going forward, and said a recent event with company leadership made them "incrementally more confident" that the chain's drivers of market share gains remain intact and it can continue improving margins, as per Investopedia.

As per Tip Ranks data, based on analyst ratings, Chipotle's 12-month average target price is at $65.74.

Meanwhile, TD Cowen continued to stay optimistic on Chipotle share. The brokerage recommended BUY with target price at $72.

On earnings forecast, the Tip Ranks data revealed that next quarter's earnings estimate for CMG is $0.31 with a range of $0.30 to $0.33. The previous quarter's EPS was $0.27. CMG beat its EPS estimate 100.00% of the time in the past 12 months, while its overall industry beat the EPS estimate 61.05% of the time in the same period. In the last calendar year CMG has Outperformed its overall industry.

Chipotle Mexican Grill, is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. There are nearly 3,500 Chipotle restaurants in the United States, Canada, the United Kingdom, France, Germany, and Kuwait and it is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe.

Chipotle is ranked on the Fortune 500 and is recognized on Fortune's Most Admired Companies 2024 list and Time Magazine's Most Influential Companies. With over 120,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices.