Chipotle's 50-for-1 stock split takes effect: Key takeaways

Chipotle Mexican Grill's (CMG) highly anticipated 50-for-1 stock split has officially taken effect Wednesday, marking a historic moment for the popular fast-casual restaurant chain and its investors. Under the terms of this split, shareholders have received 49 additional shares for each share they previously held.

Yahoo Finance's Brooke DiPalma breaks down the details and how Chipotle's stock split compares to other notable ones.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith

Video Transcript

Well, Chipotle's 50 for one stock split is officially in effect.

This is the Burrito giants first stock split and one of the largest ever in the history of the New York Stock Exchange.

Yahoo finances Brook to Palma is here with everything you need to know.

Hey, Brook.

Yeah, good morning to a shares are falling this morning down roughly 3% of the stock.

But this morning shares of to a were over $3200 as of Tuesday's market close.

Now, shares are trading around $64 per share after the company issued 49 additional shares per share owned as of market close on June 18.

Now, three factors worth noting here, a stock that makes shares more accessible to investors and to the company's employees.

On the other hand, one expert warned the finance of the stock could be exposed to a little bit more to some level of volatility at the share price.

And lastly, stock splits are purely cosmetic with no impact to fundamentals, but they are largely a sign of confidence from the company.

Shares also do tend to see higher returns following stock splits year to date.

Shares of Chipotle before market open were up around 40%.

If you take a look at another company that also conducted a stock but earlier this year, Wal Mart will shares the retail giant are up around 11% year to date in the or rather in the last three months after it conducted its stock.

But back in February and that's compared to the S and P 500 which is up only about 5%.

Ok. All right, Brooke, thanks so much for breaking that down for us again.

Chipotle a stock to watch here in today's trading Day.