Chipotle Mexican Grill has reported lower operating margin for the second quarter as its comparable restaurant sales continued to drop.

The chain’s same restaurant sales for the quarter ended June 30 fell 4 per cent, extending the 0.4 per cent decline in the first quarter. The decrease was attributed to lower transactions, partially offset by an increase in average check. 

Total revenue rose 3 per cent to $3.1 billion, mainly driven by new restaurant openings. 

Operating margin went down from 19.7 per cent in the year-ago period to 18.2 per cent. Restaurant level operating margin also fell from 28.9 per cent to 27.4 per cent.

Net income for the second quarter was $436.1 million, down from $455.7 million last year.

For the full year, the company expects flat comparable restaurant sales, compared to the prior guidance of a low single-digit growth.