The Stock Split Is Over for Chipotle: Could These 2 High-Flying Restaurant Stocks Be Next?
Stock splits usually happen after share prices have gone up by large amounts. Let's say that a management team wants to bring its $200 Stock down to $100. In that case, it will perform a 2-for-1 Stock split. Each share will be worth half as much after the split. But all shareholders will have twice as many shares, keeping overall value the same.
Many companies are doing stock splits these days, including the popular restaurant chain Chipotle Mexican Grill. For perspective, shares of Chipotle traded around $250 per share in 2018 but had risen to above $3,000 earlier this year. Management wanted to bring down the price, so it did a 50-for-1 split in June. Shareholders with just two shares before the split suddenly owned 100.
Companies aren't required to do stock splits -- Berkshire Hathaway trades at more than $600,000 per share and still doesn't intend to do anything about it. Therefore, predicting stock splits is hard.
Source Fool.com
Chipotle Mexican Grill Inc. Stock
The stock is one of the favorites of our community with 70 Buy predictions and 1 Sell predictions.
With a target price of 2478 € there is potential for a 4770.28% increase which would mean more than doubling the current price of 50.88 € for Chipotle Mexican Grill Inc..
