Perhaps you heard yesterday that, after the close, Chipotle (CMG) announced a 50-for-1 stock split. This makes sense, because the stock is about $3,000 per share, and I don’t think they’ve ever bothered splitting it until now. This news alone, which obviously has nothing at all to do with corporate economics, blasted the stock to a new lifetime high.
Personally, I’ve always found Chipotle to be an utterly forgettable dining experience, but there’s no arguing the stock hasn’t been a huge success, and people are willing to pay a P/E of 63 for a place that puts beans and rice into tortillas.
