CMG - Why Chipotle Stock Tanked Thursday Just After Its Stock Split
2024-06-27 17:47:24 ET
Chipotle Mexican Grill (NYSE: CMG) has been one tasty quesadilla of a stock on the exchange over the years. The fast-casual restaurant chain operator didn't have a good session on the market Thursday, however. Its shares fell more than 5% in value, which wasn't unusual given what happened the previous day.
Chipotle investors started Wednesday with a much higher number of shares than they held previously. Of course, this was due to the 50-for-1 stock split that kicked in that morning .
That ratio is pretty high -- most stock splits are more in the 10-for-1 range or so -- but it feels like a good move given how pricey the restaurant operator became on a per-share basis. A cheaper stock is a more attractive one, and it's likely many investors piled into Chipotle recently in the hopes that its popularity would surge post-split.
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Why Chipotle Stock Tanked Thursday Just After Its Stock Split