Chipotle has come a long way since the burrito-maker first went public nearly 20 years ago.
Although it was founded in 1993, the restaurant chain made its stock market debut in January 2006 with shares priced at $22 each. By the end of that year, Chipotle was operating more than 570 restaurants in 26 states and Washington D.C., according to its 2006 annual report.
Fast forward to the present day, and the company has grown substantially.
Chipotle’s stock price sat at $3,072.85 as of the market close on May 29. And there are over 3,500 restaurant locations across the U.S., Canada, United Kingdom, France and Germany as of March 31, per the company’s 2024 first quarter earnings report.
The chain is also preparing for its first stock split, which is set to take place after the market close on June 25. The 50-for-1 split means that shareholders will receive 50 new shares in exchange for every one that’s held today.
While a stock split won’t change the value of anyone’s investment, it lowers the price of individual shares, which can make it easier for more people to purchase.
“We believe this will make our stock more accessible to employees as well as a broader range of investors,” Jack Hartung, Chipotle’s chief financial officer, said at the March 19 announcement. “This split comes at a time when our stock is experiencing an all-time high driven by record revenues, profits, and growth.”
How much you’d have if you invested $1,000 in Chipotle
It’s no secret Chipotle’s stock price has soared to record highs over the past several years.
With that in mind, CNBC calculated how much a $1,000 investment in Chipotle made one, five or 10 years ago would be worth now. CNBC’s calculations are based on the company’s May 29 closing share price of $3,072.85.
- If you invested $1,000 in Chipotle a year ago, your investment would have grown by around 48% and be worth nearly $1,484 as of May 29.
- If you invested $1,000 in Chipotle five years ago, your investment would have ballooned by a little over 360% and be worth about $4,600 as of May 29.
- If you invested $1,000 in Chipotle 10 years ago, your investment would have increased by about 463% and be worth close to $5,634 as of May 29.
- And if you had invested $1,000 in Chipotle on Jan. 26, 2006 when it first went public, your investment would have skyrocketed by around 13,867% and be worth $139,675 as of May 29.
Do your research before investing
No matter how well or poorly a company is performing in the short-term, it’s important not to solely rely on that information to predict how it may perform in the future. The stock market is unpredictable and various unforeseen circumstances can cause a company’s share price to suddenly rise or fall.
That’s why most financial experts typically steer investors away from hand-picking individual stocks as they craft their portfolio. Instead, a more passive, diversified approach, such as investing in mutual funds or exchange-traded funds, works well for most people.
These types of funds aim to mirror a market index such as the S&P 500, which measures the stock performance of around 500 large U.S. companies. With this strategy, your funds are spread across a wide variety of companies, such as Chipotle, Target and Microsoft.
The S&P 500 is up by around 26% compared with 12 months ago, according to CNBC’s calculations. The index’s value has grown by nearly 91% since 2019, around 174% since 2014 and a little over 316% since 2006.
Want to be a successful, confident communicator? Take CNBC’s new online course Become an Effective Communicator: Master Public Speaking. We’ll teach you how to speak clearly and confidently, calm your nerves, what to say and not say, and body language techniques to make a great first impression. Preregister today and use code EARLYBIRD for an introductory discount of 30% off through July 10, 2024.
Plus, sign up for CNBC Make It’s newsletter to get tips and tricks for success at work, with money and in life.
Read the full article here
