Chipotle Mexican Grill (CMG) shares surged in premarket trading on Wednesday following the announcement of a significant development by the fast-casual restaurant chain operator. The company revealed plans for a 50-for-1 stock split, marking the first such split in its 30-year history. This decision aims to make Chipotle shares more accessible to both employees and a broader range of investors.

The Newport Beach, California-based company disclosed that it will seek shareholder approval for the stock split at its upcoming annual meeting scheduled for June 6. If approved, shareholders will receive an additional 49 shares for each Chipotle share held as of the record date on June 18. These additional shares are set to be distributed after the market closes on June 25, with trading of the split-adjusted shares commencing on the subsequent trading day.

Based on the closing price of Chipotle shares on Tuesday, which stood at $2,797.56, the stock split would effectively price each share at approximately $55.95. This move saw Chipotle shares surge by 6.7% to $2,985.00 in premarket trading, just hours before the opening bell on Wednesday.

In addition to the stock split, Chipotle also announced plans to provide a special one-time equity grant to restaurant general managers and employees with over 20 years of service. Chipotle’s Chief Financial Officer, Jack Hartung, emphasized that these initiatives are aimed at enhancing accessibility to Chipotle stock for employees and a wider investor base, particularly during a period of heightened stock performance driven by record revenues, profits, and growth.

Chipotle’s recent financial performance underscores its strong market position, with a 15.4% increase in revenue reported in the fourth quarter compared to the previous year, coupled with a 25% rise in adjusted profit. The company attributes this growth to robust demand for its popular menu options, such as burritos and rice bowls.

The upward trajectory of Chipotle’s share price is evident, especially since a retracement to the 200-day moving average. With today’s projected opening price poised to set a new record high, investors may look for opportunities to buy on dips, particularly around key technical support levels. Overall, the announcement of the stock split reflects Chipotle’s confidence in its future growth prospects and commitment to creating value for its shareholders.