Chipotle Announces 50-for-One Stock Split

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Chipotle Announces 50-for-One Stock Split (Read More)

Chipotle's Split: Chipotle initiates a 50-for-one stock split for easier stock accessibility.

• Board Approval: Chipotle's board approves the historic stock split, awaiting shareholder vote on June 6.

• Employee Benefits: The split precedes a one-time equity grant for loyal employees, including restaurant GMs with 20-plus years of service.

• Financial Performance: Chipotle's exceptional growth includes a record revenue increase, rising same-store sales, and expanding restaurant portfolio.

• Global Expansion: Chipotle secures its first Middle East development agreement, pioneering new units in Dubai and Kuwait.

• Unit Economics: Surpassing $3 million AUV, Chipotle is on track toward a $4 million goal and plans to open 285 to 315 new stores.

• Stock History: Chipotle's IPO saw significant early success, paving the way for its current growth trajectory.

🧠 EDITOR’S NOTES

Chipotle Mexican Grill, established in 1993, boasts a network of over 2,500 outlets nationwide and thrives in the fast-casual, fresh Mexican cuisine sector.

Typically, Chipotle leases locations for 15 years via ground lease, incorporating rent escalations of 10% every 5 years. The standard Chipotle outlet occupies approximately 3,000 square feet.

As an investor in triple net leases (NNN), it's essential to note that Chipotle lacks ratings from S&P or Moody's. Additionally, ground leases do not enable tax depreciation benefits.

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