Consumers have yet to give up their daily latte despite penny-pinching elsewhere on the high street.
Caffe Nero said that unlike many other high street operators, it had experienced buoyant levels of trading in 2005 and annual profits would " materially" beat expectations.
Chief executive Gerry Ford said the group had managed to avoid the impact of the consumer slowdown since many people were still prepared to make everyday purchases.
The group said a strong trading performance in the second half of its financial year meant revenues would be at the top end of market expectations.
Shares rose six per cent after it also reported a high single-digit figure increase in same-store sales.
Mr Ford said he believed the group was gaining market share from the poorer independent operators, as well as from rival chains.
House broker Collins Stewart upgraded its forecast for pre-tax profits to £4.9 million from a previous estimate of £4.3 million.
