George Weston reports $258 million Q2 profit, announces stock split

 George Weston Ltd. says its second-quarter profit available to common shareholders amounted to $258 million, down from $400 million in the same quarter last year.  The company, which holds large interests in Loblaw Cos. Ltd. and Choice Properties REIT, says the drop in profit from last year came in part because of a fair value adjustment of a trust unit liability. On an adjusted basis, the company says it earned $401 million or $3.06 per diluted share for the quarter, up from an adjusted profit of $394 million or $2.93 per diluted share a year ago. Analysts on average had expected an adjusted profit of $3.37 per diluted share, according to LSEG Data & Analytics.  Revenue for the quarter totalled $14.82 billion, up from $14.09 billion in the same quarter last year. George Weston, whose shares stand at around $260 each, also announced a three-for-one stock split in a move it says will ensure common shares remain accessible to retail investors and employees, and to improve liquidity. This report by The Canadian Press was first published July 29, 2025. Companies in this story: (TSX:WN)

A stock split is a corporate action in which a company increases the number of its outstanding shares by issuing more shares to current shareholders in a set ratio (such as 2-for-1 or 3-for-1). While the number of shares you own increases, the price per share decreases proportionally, so the total value of your investment remains the same.

For example, in a 2-for-1 split, if you had 1 share worth $100 before the split, you would have 2 shares worth $50 each after the split. The company’s overall market value does not change—it just divides existing ownership into smaller, more affordable pieces.

Stock splits are usually done to:

• Make shares more accessible to smaller investors by lowering the trading price per share
• Increase liquidity (ease of buying and selling the stock)
• Signal confidence by management in the company’s growth prospects

Overall, a stock split does not change the ownership percentage or the total value of shares held; it simply breaks shares into smaller units.

This action can sometimes boost demand by making the stock appear cheaper and more attractive to retail investors without affecting the company’s actual market capitalization.

Key points:

• Number of shares increases
• Price per share decreases proportionally
• Total investment value unchanged
• Market capitalization unchanged
• Improves liquidity and accessibility

This concept is like cutting a cake into more slices—you get more pieces, but the total cake remains the same.

A stock split does not change the company’s market capitalization. This is because while the number of shares outstanding increases after a split, the price per share decreases proportionally. The total market value of the company remains the same, as market capitalization is calculated by multiplying the share price by the total number of shares.

For example, if a company with 1 million shares priced at $100 each does a 2-for-1 split:

• Number of shares doubles to 2 million
• Price per share halves to $50
• Market capitalization stays at $100 million (2 million shares × $50 each)

Essentially, a stock split just divides the shares into smaller, more affordable units without changing the overall value of the company. It usually aims to improve stock liquidity and accessibility to investors, but the fundamental value and ownership structure remain unchanged.

In summary, market capitalization stays constant immediately after a stock split, as it is a purely cosmetic change to the number of shares and their price.