Chipotle Mexican Grill is planning to lower its stock price and give more shares to its existing investors.

The restaurant known for burrito bowls and charging extra for guac said this week it will conduct the company's first ever stock split. The unusual 50-for-1 stock split needs shareholder approval first, which the company said it will seek during its annual meeting in June. The move will make Chipotle's "stock more accessible to employees, as well as a broader range of investors," a company executive said. 

"This split comes at a time when our stock is experiencing an all-time high driven by record revenues, profits, and growth," Jack Hartung, Chipotle's chief financial and administrative officer, said in a statement. 

Chipotle's share price opened Wednesday at $2,797, up nearly 97% from three years ago when it was $1,421. 

What is a stock split?

A stock split is when a publicly traded company increases the number of its shares available to investors in an effort to entice more people to buy shares in the company. Increasing the number of shares available effectively lowers the price of the stock after a certain date — which then makes purchasing stock more affordable. Companies typically conduct stock splits to quickly infuse the organization with outside cash. 

Stock splits can be structured many ways — including 3-for-1, 10-for-1 or 100-for-1. In Chipotle's 50-for-1 case, anyone holding one share of the company will be awarded an additional 49 once the split is official. Chipotle said investors should expect to see their additional shares on June 25.

What's driving Chipotle's stock price skyward?

In short, the rise in Chipotle's shares is the result of the restaurant's opening new locations and growing revenue. The company opened 271 new locations in 2023 and reported $9.9 billion in revenue for the year, a 14.3% increase from 2022. The chain had roughly 3,400 locations as of December and plans to open between 285 and 315  new locations this year. 

CEO Brian Niccol said last month that Chipotle's long-term goal is to have 7,000 restaurants across North America.