Billionaire investor Ken Griffin, head of Citadel Advisors, has sold 91% of his stake in AI company Palantir Technologies, despite its recent stock surge, due to its high valuation. Instead, Griffin has significantly increased his investment in Chipotle Mexican Grill, taking advantage of a dip in its stock price following executive departures. Chipotle's strong financial performance and a recent stock split have made it an attractive investment, despite its premium valuation compared to the broader market.
Nvidia shares are falling on "triple witching" day, Gilead Sciences is rising after positive HIV drug trial results, Sarepta Therapeutics soars on expanded FDA approval for its gene therapy, Chipotle is in focus ahead of its 50-for-1 stock split, and CarMax gains despite missing quarterly forecasts.
Nvidia shares are falling on "triple witching" day, Gilead Sciences is gaining on positive HIV drug trial results, Sarepta Therapeutics soars after expanded FDA approval for its gene therapy, Chipotle is in focus ahead of a 50-for-1 stock split, and CarMax shares rise despite missing quarterly forecasts. U.S. stock futures are down following Nvidia's decline.
Billionaire investors are heavily buying stock-split companies Chipotle Mexican Grill and Sony Group, while selling off Walmart shares. Chipotle's 50-for-1 split and Sony's 5-for-1 split have attracted significant investments due to their strong operational performance and growth potential. Conversely, concerns about a potential recession and Walmart's valuation have led to a sell-off by top investors.
Chipotle Mexican Grill's board approved a 50-for-1 stock split, pending shareholder approval at the annual meeting on June 6. The split is set for June 25 and is one of the biggest in NYSE history. While the company's business is thriving with revenue and earnings growth, and international expansion, the stock's high valuation and the temporary impact of the split make it a less attractive investment. The Motley Fool's analyst team did not include Chipotle in their 10 best stocks to buy now, suggesting other options may offer better returns.
Chipotle Mexican Grill plans to implement a 50-for-1 stock split, but investors should not rush to buy stock ahead of the split as it does not create shareholder value. The company's growth and profitability have been the key drivers of its stock performance, and CEO Brian Niccol believes the growth story is far from over, with plans to surpass 7,000 locations in North America and increase average unit volumes. While the stock split may make shares more accessible to everyday investors and enable new stock option strategies, investors are better off focusing on the company's business and growth prospects rather than the split itself.
A Wall Street analyst raised her price target on Chipotle stock to $3,300, citing strong pricing power and consistent increases in customer visits as factors that will continue to drive share outperformance. Chipotle's plans for a 50-for-1 stock split and its impressive financial performance, including revenue growth of 14% to $9.9 billion in 2023, have contributed to its stock's gains of roughly 12,600% since its IPO in 2006. While the stock is not cheap at just over 8 times sales, the analyst believes that a premium is warranted due to Chipotle's long-term growth outlook.
Chipotle Mexican Grill's board has approved a 50-for-1 stock split, causing the stock to rise overnight. Shareholders will vote on the split at the annual meeting in June, and the announcement led to a 4.4% jump in late trading. Stock splits can attract investors as the stock appears "cheaper," although ownership stakes remain the same. This 50-for-1 split is notably large, and follows Google parent Alphabet's 20-for-1 split in 2022.
Chipotle Mexican Grill's board has approved a 50-for-1 split of its common stock, causing its shares to rise about 7% in extended trading. The stock split, subject to shareholder approval at the upcoming annual meeting on June 6, would give shareholders 49 additional shares for each share held if approved. The shares are expected to begin trading on a post-split basis on June 26, making it one of the biggest stock splits in New York Stock Exchange history. Chipotle's shares had closed at a record high of $2,797.56 on Tuesday and had gained more than 70% over the last 12 months, driven by strong financial performance.
Walmart's 3-for-1 stock split marks a significant change for the Dow Jones Industrial Average, with the company aiming to make shares more accessible to employees. Meta Platforms, Chipotle Mexican Grill, and Broadcom are identified as potential candidates for future stock splits, with each company demonstrating strong performance and growth potential in their respective industries.
The stock market is showing momentum and positive indicators, making 2024 a potentially high-gain year. Three stocks with high growth potential are MercadoLibre, Chipotle Mexican Grill, and On Holding. MercadoLibre, a Latin American e-commerce giant, has a strong fintech division and well-diversified business. Chipotle continues to perform well despite inflation, with plans for significant expansion. On Holding, a premium activewear brand, is experiencing rapid growth and has significant room for expansion. These stocks present opportunities for investors seeking long-term growth.
Chipotle Mexican Grill reported better-than-expected earnings for the third quarter, driven by higher menu prices that helped offset increased food costs. The company's net income rose to $313.2 million, or $11.32 per share, compared to $257.1 million, or $9.20 per share, in the same period last year. Chipotle's revenue of $2.47 billion met expectations, while same-store sales grew by 5%, surpassing estimates. The company also announced plans to open 285 to 315 new restaurants by 2024 and reiterated its forecast for mid-to-high single-digit same-store sales growth in 2023.
CNBC's Jim Cramer agrees with Oppenheimer's positive outlook on Chipotle Mexican Grill stock, despite the analysts lowering the price target. Cramer highlights Chipotle's solid fundamentals, including the company's direct ownership of its restaurants, as a competitive advantage over franchised competitors like McDonald's. Cramer's Charitable Trust does not own Chipotle shares but holds a position in Starbucks.
CNBC's Jim Cramer predicts that Chipotle Mexican Grill's stock price will surpass $2,000 per share soon, citing its recent turnaround and positive outlook. Cramer believes that a $2,400-per-share price target issued by Baird is achievable for the fast-food chain, which recently reached an all-time high of $2,153 per share. He considers Chipotle a strong investment alongside companies like Lululemon and MongoDB, while also mentioning that his Investing Club owns shares of Starbucks.
Pizzeria Locale, a fast-casual build-your-own style pizza chain in the Denver metro area, will be closing all five of its locations on July 10 and dissolving the business. The parent company, Chipotle Mexican Grill, has offered impacted employees the opportunity to work at Chipotle restaurants in the Denver area. The closures come after the recent closure of Pizzeria Locale's Boulder location in December.
