Chipotle Mexican Grill (NYSE: CMG) made history when it announced a 50-for-1 stock split last month. Assuming shareholders approve the amendment at the annual meeting on June 6, the stock will split after the market closes on June 25.

That announcement is historic for two reasons. First, Chipotle has never split its stock since it was founded 30 years ago. Second, it will be one of the biggest stock splits in New York Stock Exchange (NYSE) history, with shareholders receiving 49 additional shares for each share owned.

Stock splits can be useful to investors -- not only because they make shares cheaper, but also because they can spotlight competitively advantaged companies. That is to say, the substantial price appreciation that typically precedes a Stock split rarely happens to mediocre companies.

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Source Fool.com