Restaurant company Chipotle Mexican Grill (NYSE:CMG) will complete a 50-for-1 stock split after the market closes on Tuesday, with shares trading at a new split-adjusted price to open Wednesday's trading session.
The development comes about a week after the $88-billion burrito chain enjoyed the title of most valuable company in the world.
On Companiesmarketcap.com, Chipotle briefly listed at $4.428 trillion — likely an error in calculating the current value multiplied by 50.
On the site, Chipotle is shown as moving up 187 places and passing the three largest companies:
- Microsoft Corporation (NASDAQ:MSFT): $3.33 trillion
- Apple Inc (NASDAQ:AAPL): $3.22 trillion
- Nvidia: $2.97 trillion
The same error was recognized on Yahoo Finance with a $4.44 trillion market capitalization shown.
Stock splits and reverse stock splits can sometimes take time to show adjusted financials and market capitalizations. Tuesday's error is less frequent as it is occurring ahead of the planned stock split.
Related Link: Chipotle Mexican Grill Q1 Earnings: Revenue Beat, EPS Beat, Comparable Sales Up 7% And More
Why It's Important: Chipotle is one of the top-performing restaurant stocks over the last 10 years, gaining over 440%.
The stock has been a top performer since its 2006 IPO at $22 per share.
Chipotle beat analyst estimates for both revenue and earnings per share in the first quarter. The company also reported that comparable restaurant sales were up 7% year-over-year.
The company plans to open 285 to 315 restaurants in the current fiscal year, with around 80% coming with a Chipotlane, the company's version of a drive-thru.
Chipotle's first-ever stock split could make shares easier to obtain for employees and investors looking to buy whole shares instead of partial shares, given a current share price in the thousands.
CMG Price Action: Chipotle shares are up 1% to $3,233.48 on Tuesday versus a 52-week trading range of $1,768.64 to $3,463.07.
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