Domino’s Pizza continues to defy the downturn after forecasting that its full-year profits would be better than previously expected.

Domino’s said profits for the year would be £23m, up from initial projections of £22.2m.

Like-for-like sales were up by 10% over the year to 28 December to £350.8m, an overall increase of more than 18%, while online sales rose by almost three-quarters (74%) to a new high of £55.9m.

Sales for the 13 weeks to 28 December rose by 8.6% on a like-for-like basis.

The takeaway pizza specialist has emerged as one of the winners from the economic uncertainty as cash-conscious consumers shun dining out at restaurants. Domino’s has more than 550 outlets in the UK but now plans to expand to 1,000.

“People still want a treat but they are looking for ways to get that treat at a lower price,” said a spokesperson for the group. “On occasions when they might go for a meal, what we are seeing is they are getting a bottle of wine from the supermarket and ordering a pizza.”

Meanwhile, bakery chain Greggs yesterday unveiled a hike in like-for-like sales of 5.3% for the past three months.

“What we are seeing is only the early stages of a period when consumers are prepared to shop around in pursuit of the best value they can get for their money,” said chief executive Ken McMeikan, who joined Greggs last year after quitting as retail director at Sainsbury’s.

“Before we got into Christmas it seemed to be the north and Scotland that were feeling the effects of the recession but now it's everywhere,” he told The Guardian.

Last month the chain announced that it was bringing its 165 Bakers Oven outlets under the Greggs banner, having acquired the business in 1994 from Allied Bakeries.