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1 unstoppable stock split that will multiply your investment

1 unstoppable stock split that will multiply your investment
Elmaz Sabovic

Compound investing, coupled with stocks that undergo stock splits, presents an ideal investment opportunity for first-time investors and those seeking to diversify their portfolios. Chipotle’s (NYSE: CMG) stock ticks all the sections on this list.

With a remarkable growth of over 7,000% since its IPO, CMG stock is set to undergo a 50-1 stock split on June 18, pending likely board approval, making its price much more affordable to new investors.

CMG stock all-time price chart. Source: Google Finance
CMG stock all-time price chart. Source: Google Finance

What makes CMG stock-split so attractive?

With Chipotle shares priced in the four-digit range, the split aims to make the stock more accessible to investors despite most brokerages now offering fractional shares.

Stock splits don’t change a company’s fundamentals; they divide shares into smaller pieces. However, investors often view splits positively. A high stock price usually indicates a company’s strong performance and a decision to split suggests that management expects continued success.

Chipotle’s market cap has risen 37% this year, and the stock split will likely boost it further. 

Chipotle’s massive growth is set to continue

Chipotle has made significant improvements in its processes, leading to quicker service. Combined with effective marketing campaigns, this resulted in a 5% increase in transactions in the first quarter, boosting comparable sales. Despite its strong performance, Chipotle continues to seek ways to improve.

Having proven its concept and grown its business, Chipotle is expanding even further. With nearly 3,500 stores, it aims to grow to 7,000 locations. The company is moving beyond urban centers into suburban areas and international markets. It is expanding in Canada and has signed its first franchise agreement for stores in the Middle East.

Chipotle opened 47 new locations in the first quarter and plans to open about 300 by the end of this year in an ambitious move to expand its business, presenting traders with a solid investment opportunity.

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