(Reuters) - Restaurant Group,the owner of Wagamama and Brunning & Price restaurants, said on Wednesday it expects annual profit to be higher after posting an increase in first-half earnings helped by more people dining at its joints.
Consumers are willing to spend at restaurants and pubs despite a cost of living crisis, but an uncertain economic environment continues to pose challenges for the hospitality sector.
The group, which did not mention a range for its profit expectations for the year, said cost outlook for the medium term continued to improve.
Analysts, on average, expected core profit to be about 77.5 million pounds for the year, according to company compiled consensus.
The group, which operates more than 400 restaurants and pubs mostly across the UK, has been under pressure from investors over the last few months to increase profitability and more recently, to replace its chairman.
Restaurant Group reported a 15% rise in adjusted core profit to 36.3 million pounds ($45.7 million) for the half-year ended July 2.
($1 = 0.7952 pounds)
(This story has been corrected to fix the spelling of 'Wagamama' in the headline)