Chipotle Mexican Grill (CMG) jumped in premarket trading Wednesday after the fast casual restaurant chain operator announced that its board has approved a 50-for-1 stock split to make its shares more accessible to staff and a broader range of investors.

The Newport Beach, California-based company said late Tuesday it will seek shareholder approval for the split, the first in the Mexican restaurant chain’s 30-year history, at its annual meeting slated for June 6.

If successful, shareholders will receive an additional 49 share for each Chipotle share held as of record date June 18, with the extra shares distributed after the closing bell on June 25. Shares are slated to begin trading on a post-split basis the following day.

In addition to the split, the company said it plans to offer a special one-time equity grant—a type of incentivized stock compensation—for restaurant general managers and employees with more than 20 years of service.

“(T)his will make our stock more accessible to employees as well as a broader range of investors,” Chipotle Chief Financial Officer (CFO) Jack Hartung said in a press release. "This split comes at a time when our stock is experiencing an all-time high driven by record revenues, profits, and growth," he added.

In the fourth quarter, Chipotle reported a 15.4% jump in revenue from a year earlier while its adjusted profit in the period grew 25%, boosted by strong demand for its burrito and rice bowl menu options. For 2024, Chipotle anticipates same-store sales percentage growth in the mid-single digits.

Since a retracement to the 200-day moving average, the Chipotle share price has trended sharply higher, with today’s projected opening price placing the stock at a new record high. If the shares continue to climb, look for the price to keep making higher highs and higher lows to confirm the upward momentum. During periods of profit taking, monitor a trendline extending back to the mid-October low last year as a potential area on the chart where investors may look for buy-the-dip opportunities.

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As of the date this article was written, the author does not own any of the above securities.