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Chipotle shares start trading post 50-for-1 stock split

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NEWPORT BEACH, Calif. – Chipotle Mexican Grill, Inc. (NYSE: NYSE:) has announced the completion of a significant 50-for-1 stock split, with its shares set to begin trading on a split-adjusted basis today. The move comes after the market closed yesterday, when shareholders of record as of June 18, 2024, were allocated 49 additional shares for every share they owned.

This strategic decision by the company aims to make stock ownership more accessible to its employees and potential investors. In a gesture to celebrate this milestone and acknowledge the contributions of its workforce, Chipotle is awarding a one-time equity grant to all restaurant general managers and crew members who have served the company for over two decades.

Brian Niccol, Chairman and CEO of Chipotle, expressed enthusiasm for the broadened participation in the company’s financial success, attributing it to the dedication of employee shareholders in advancing Chipotle’s mission to “Cultivate a Better World.”

Chipotle, known for its commitment to using responsibly sourced ingredients and owning and operating all its nearly 3,500 restaurants in North America and Europe, continues to demonstrate its role as a leader in the food industry.

The company’s emphasis on digital and sustainable business practices has been recognized by its inclusion in the Fortune 500 and Fortune’s Most Admired Companies 2024 list, as well as Time Magazine’s Most Influential Companies.

The press release also contained forward-looking statements regarding the timing of the one-time equity grant and potential growth opportunities, which are subject to market risks and uncertainties. These statements are forward-looking as defined by the Private Securities Litigation Reform Act of 1995.

Today’s trading activity will reflect the new stock structure, which may attract a diverse range of new shareholders. Chipotle’s initiative underscores its ongoing efforts to make its food more accessible while maintaining a focus on innovation and purpose-driven business.

This report is based on a press release statement from Chipotle Mexican Grill, Inc.

In other recent news, Chipotle Mexican Grill has been the focus of several significant developments. The company reported robust financial results with a 7% increase in comparable sales growth and total sales of $2.7 billion for the first quarter. Digital sales accounted for 37% of the total. Chipotle also revealed plans to open between 285 to 315 new restaurants throughout the year.

Argus raised its price target for Chipotle shares to $3,888, citing the company’s strong financial position and effective mobile ordering and delivery platforms. Goldman Sachs initiated coverage of Chipotle with a Buy rating and a price target of $3,730.00, emphasizing the company’s potential to grow its average unit volume and scale its business efficiently. Truist Securities also raised its price target on Chipotle shares to $3,520 but slightly lowered its earnings estimates for the company.

In a historic move, Chipotle shareholders approved a 50-for-1 stock split, aiming to make the company’s stock more accessible to a broader investor base. The company also announced a special one-time equity grant for its longstanding employees. Lastly, the New York Stock Exchange is currently investigating a technical issue that caused temporary trading halts of several NYSE-listed stocks, including Chipotle. These are the recent developments involving Chipotle Mexican Grill.

InvestingPro Insights

As Chipotle Mexican Grill, Inc. (NYSE: CMG) commences trading on a split-adjusted basis, it’s an opportune moment to consider the company’s financial metrics and market performance. According to InvestingPro data, Chipotle boasts a substantial market capitalization of $90.18B, reflecting its significant presence in the food industry.

Despite the stock split aimed at making shares more accessible, the company is trading at a high earnings multiple, with a P/E ratio (adjusted for the last twelve months as of Q1 2024) of 68.12. This indicates a premium valuation that investors are willing to pay for Chipotle’s earnings potential.

InvestingPro Tips highlight that while Chipotle is trading at a high P/E ratio relative to near-term earnings growth, the company has demonstrated a strong return over the past year, with a 61.54% price total return. Moreover, Chipotle’s cash flows have been robust enough to sufficiently cover interest payments, suggesting a healthy financial position. These insights are particularly relevant for investors evaluating the company’s performance post-stock split and considering the potential for long-term growth.

For those interested in a deeper analysis, there are 17 additional InvestingPro Tips available, which can provide further guidance on Chipotle’s financial health and investment potential. To access these insights, visit https://www.investing.com/pro/CMG and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This comprehensive resource can assist both current shareholders and potential investors in making informed decisions in the wake of Chipotle’s new stock structure.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Trump transition team plans immediate WHO withdrawal, expert says

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By Maggie Fick and Ahmed Aboulenein

WASHINGTON (Reuters) – Members of Donald Trump’s presidential transition team are laying the groundwork for the United States to withdraw from the World Health Organization on the first day of his second term, according to a health law expert familiar with the discussions.

“I have it on good authority that he plans to withdraw, probably on Day One or very early in his administration,” said Lawrence Gostin, professor of global health at Georgetown University in Washington and director of the WHO Collaborating Center on National and Global Health (NS:) Law.

The Financial Times was first to report on the plans, citing two experts. The second expert, former White House COVID-19 response coordinator Ashish Jha, was not immediately available for comment. 

The Trump transition team did not immediately respond to a Reuters request for comment.

The plan, which aligns with Trump’s longstanding criticism of the U.N. health agency, would mark a dramatic shift in U.S. global health policy and further isolate Washington from international efforts to battle pandemics.

Trump has nominated several critics of the organization to top public health positions, including Robert F. Kennedy Jr., a vaccine skeptic who is up for the post of secretary of Health and Human Services, which oversees all major U.S. health agencies including the CDC and FDA. 

Trump initiated the year-long withdrawal process from the WHO in 2020 but six months later his successor, President Joe Biden, reversed the decision.

Trump has argued that the agency failed to hold China accountable for the early spread of COVID-19. He has repeatedly called the WHO a puppet of Beijing and vowed to redirect U.S. contributions to domestic health initiatives.

A WHO spokesperson declined to directly comment but referred Reuters to comments by WHO Director-General Tedros Adhanom Ghebreyesus at a press briefing on Dec. 10 in which he was asked whether he was concerned that the Trump administration would withdraw from the organization.

Tedros said at the time that the WHO needed to give the U.S. time and space for the transition. He also voiced confidence that states could finalize a pandemic agreement by May 2025.

© Reuters. FILE PHOTO: U.S. President-elect Donald Trump attends Turning Point USA's AmericaFest in Phoenix, Arizona, U.S., December 22, 2024.  REUTERS/Cheney Orr/File Photo

Critics warn that a U.S. withdrawal could undermine global disease surveillance and emergency response systems. 

“The U.S. would lose influence and clout in global health and China would fill the vacuum. I can’t imagine a world without a robust WHO. But U.S. withdrawal would severely weaken the agency,” Gostin said.

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Just in: MicroStrategy Buys $561 Million More Bitcoin (BTC), Announces Saylor

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U.Today – MicroStrategy has made headlines again by purchasing 5,262 BTC for approximately $561 million at an average price of $106,662 per BTC. The company now holds a staggering 444,262 BTC, accumulated at a total cost of approximately $27.7 billion, with an average purchase price of $62,257 per BTC.

Despite impressive returns of 47.4% since the beginning of the quarter and 73.7% since the beginning of the year, skepticism about the company’s strategy is growing.

It is believed that to sustain its purchases, MicroStrategy raises capital through methods such as issuing convertible and corporate bonds, securing credit lines and selling shares.

This cycle appears to operate as follows: shares are sold to acquire the cryptocurrency, and the rising price per BTC increases asset value, enabling further loans, which are then reinvested in more purchases.

Some observers warn that a significant decline in Bitcoin’s price or MicroStrategy’s stock could trigger a cascade effect. A sharp fall in MSTR shares would weaken the collateral backing its loans, potentially leading to forced asset sales, including BTC.

This scenario could exert downward pressure on the broader cryptocurrency market, as the company holds 2.2% of the global Bitcoin supply now.

Thus, while some view Michael Saylor’s approach as a bold bid to cement the cryptocurrency’s role in the financial system, others see it as unsustainable. History offers a cautionary note: in 2000, MSTR shares surged to $333 before plummeting 99%, a collapse that took 24 years to recover from.

This article was originally published on U.Today

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Taylor Morrison Named Among America’s Most Trusted and Best Companies by Forbes

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National homebuilder ranked No. 12 on inaugural list ranking companies based on trust

SCOTTSDALE, Ariz., Dec. 23, 2024 /PRNewswire/ — With a longstanding reputation for trust, national homebuilder and land developer Taylor Morrison (NYSE:) (NYSE: ™HC) has been recognized by Forbes on their inaugural list of the Most Trusted Companies in America. The homebuilder ranked No. 12  out of 300 companies across all industries.

There are few things more powerful than trust and it’s something we strive to earn amongst all company stakeholders, from our customers to our team members, our shareholders, and our local communities,” said Taylor Morrison Chairman and CEO Sheryl Palmer. “To be included on this esteemed list in its inaugural year is especially meaningful and these awards are important reminders of the relationships we’re building across all aspects of our business.”

Fueled by hundreds of millions of data points, the Most Trusted Companies in America list combines data on a wide range of factors across four categories: employee trust, customer trust, investor trust and media sentiment. The ranking was created in partnership with research companies HundredX, Signal AI and Glassdoor.

Taylor Morrison also earned the No. 67 spot on Forbes’ inaugural America’s Best Companies list. The ranking is Forbes’ most comprehensive company ranking to date and factored in ratings for financial performance, customer and employee satisfaction, cybersecurity, sustainability, companies’ remote work policies, media coverage and more. Forbes’ America’s Best Companies list assessed more than 60 metrics across 11 primary categories to identify which organizations excel across the board. Of the more than 2,000 U.S.-based publicly traded companies that were eligible, only 300 qualified for each list.

In addition to being named among the Most Trusted and Best Companies in America by Forbes, Taylor Morrison holds several additional accolades including being named on Newsweek’s America’s Most Responsible Companies and America’s Greenest Companies lists, U.S. News & World Report’s Best Companies to Work For list, the American Opportunity (SO:) Index, America’s Most Trusted ® Home Builder for nine years, Hearthstone’s 2021 BUILDER Humanitarian Award, and inclusion on the Fortune 500 list since 2021.

About  Taylor Morrison
Headquartered in  Scottsdale, Arizona,  Taylor Morrison  is one of the nation’s leading homebuilders and developers. We serve a wide array of consumers from coast to coast, including first-time, move-up, luxury and resort lifestyle homebuyers and renters under our family of brands”including  Taylor Morrison, Esplanade and Yardly. From 2016-2024,  Taylor Morrison  has been recognized as America’s Most Trusted ®  Builder by Lifestory Research. Our long-standing commitment to sustainable operations is highlighted in our annual  Sustainability and Belonging Report.  

For more information about  Taylor Morrison, please visit  www.taylormorrison.com.

CONTACT:
media@taylormorrison.com

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