Chipotle Mexican Grill (CMG) made a significant announcement on Tuesday, revealing that its board has approved a 50-for-1 stock split. This news sent Chipotle stock soaring overnight as investors reacted positively to the potential split.

The plan for the Chipotle stock split will be presented for voting at the upcoming annual meeting on June 16, where shareholders will have the opportunity to weigh in on the decision. The anticipation surrounding this event contributed to a 4.4% increase in Chipotle stock during late trading.

Prior to the stock split announcement, Chipotle stock reached impressive heights, closing at a record high of 2,797.56 on Tuesday. The pending stock split has the potential to generate further interest among investors, as it is often seen as making the stock more affordable, despite not affecting the ownership stakes of shareholders.

Stock splits also bring potential benefits to options trading, further enhancing the attractiveness of Chipotle's stock. However, it is worth noting that the 50-for-1 stock split is considered unusually large, indicating the ambitious nature of Chipotle's decision.

The last significant stock split in recent memory came from Google parent company, Alphabet (GOOGL), in 2022. Alphabet announced a 20-for-1 split, which created considerable buzz in the investment community. Chipotle's 50-for-1 stock split is even more substantial, setting the stage for potential market excitement.

With the annual meeting just around the corner, all eyes will be on Chipotle's shareholders to gauge their response to the stock split proposal. Whether the split will generate further buying interest and drive Chipotle stock to new heights remains to be seen.