NEW YORK (TheStreet) -- Shares of Chipotle Mexican Grill(CMG) - Get Report are slumping 0.68% to $400.01 in early-morning trading on Friday after putting marketing executive Mark Crumpacker on administrative leave after New York City prosecutors alleged he was involved in a cocaine drug ring.
Crumpacker, chief creative and development officer at the Mexican-style food chain, was one of 18 alleged buyers indicted in the drug ring, the Wall Street Journal reports. He is expected to be arraigned in the near future.
Each of the buyers have been charged with a single count of criminal possession of a controlled substance in the seventh degree, which is a misdemeanor offense. But the indictment is not at all tied to Chipotle itself.
"We know very little about these charges," a spokesman told Bloomberg, noting that Crumpacker has been placed on administration leave. "We made this decision in order to remain focused on the operation of our business and to allow Mark to focus on these personal matters."
The indictment comes as Chipotle attempts to recover from a series of disease outbreaks last year that negatively impacted the company's stock price and sales. Crumpacker had been leading the marketing effort to restore Chipotle's image.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Chipotle's strengths such as its very decent return on equity which we feel should persist, are countered by weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins.
You can view the full analysis from the report here: CMG
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.