(MONEY Magazine) – SWEET Have you noticed a whole bunch more choices at the candy counter lately? There are Hershey's Kisses in dark chocolate, caramel or almond. Reese's Peanut Butter Cups come in white, dark, inside out and honey roasted. It's all part of Hershey Foods CEO Rick Lenny's plan to improve sales by milking the company's best brands. He's also expanding aggressively into convenience and dollar stores, where margins are higher than in supermarkets. For an old-line consumer company, Hershey has been churning out tasty financial performance: 12% earnings growth in the first quarter, and a projected 19% growth in free cash flow for the next three years.

THE STICKY BIT The stock is at a 25% premium (based on its P/E) to other food stocks, leaving it vulnerable if problems facing the industry worsen. These include the dieting craze and rising commodity costs.

OUR ADVICE The premium is deserved. Hershey continues to innovate with new snack bars, including one co-marketed by Zone Diet guru Barry Sears, due out later this year. A 1.8% yield adds safety. --LISA GIBBS