Williams-Sonoma vs Darden

Williams-Sonoma vs Darden compares two prominent names in American retail and hospitality. This page examines their business models, financial performance, and market context side by side, providing neutral, accessible explanations. Learn how each company approaches customers, growth, and efficiency, without offering advice or recommendations. Educational content, not financial advice.

Williams-Sonoma vs Darden compares two prominent names in American retail and hospitality. This page examines their business models, financial performance, and market context side by side, providing n...

Comparison Snapshot

Key Financial Metrics

WSM

Metric

DRI

$25.62B

Market Cap

$24.35B

-5.82%

Potential Profit

3.80%

Buy

Analyst Rating

Buy

Why It's Moving

WSM Stock Warning: Why Analysts See -3% Downside Risk

Recent dividend declaration of $0.66 per share for shareholders on record January 16 reinforces shareholder returns but hasn't offset valuation concerns.
Stock climbed from $206 on February 12 to $214.57 by February 13, reflecting positive momentum that analysts view as potentially overextended.
Broader retail sector sentiment dipped slightly, with WSM's news score at 1.37, tempering optimism as inventories rose 9.6% in prior Q3 amid softer comps outlook.

Sentiment:

🐻Bearish

WSM Stock Warning: Why Analysts See -3% Downside Risk

Recent dividend declaration of $0.66 per share for shareholders on record January 16 reinforces shareholder returns but hasn't offset valuation concerns.
Stock climbed from $206 on February 12 to $214.57 by February 13, reflecting positive momentum that analysts view as potentially overextended.
Broader retail sector sentiment dipped slightly, with WSM's news score at 1.37, tempering optimism as inventories rose 9.6% in prior Q3 amid softer comps outlook.

Sentiment:

🐻Bearish

Investment Analysis

Williams-Sonoma

WSM

Pros

Williams-Sonoma maintains a strong omni-channel retail presence with well-recognised brands across home furnishings and kitchenware.
The company has delivered consistent profitability, with robust gross margins and EBITDA performance in recent quarters.
Williams-Sonoma offers a stable dividend yield, supported by solid cash flow generation and a manageable payout ratio.

Considerations

The stock trades at a premium valuation relative to historical averages, with a price-to-earnings ratio above the sector median.
Williams-Sonoma faces ongoing competition from both traditional retailers and e-commerce platforms, pressuring market share.
Consumer spending on home goods is sensitive to economic cycles, exposing the business to potential downturns in discretionary spending.

Darden

DRI

Pros

Darden operates a diversified portfolio of popular restaurant brands, providing resilience across different dining segments.
The company has demonstrated strong same-store sales growth and effective cost management in recent periods.
Darden benefits from a scalable operating model and a track record of returning capital to shareholders through dividends and buybacks.

Considerations

Restaurant margins are vulnerable to fluctuations in food and labour costs, which can impact profitability unexpectedly.
Darden's performance is closely tied to consumer confidence and discretionary spending, making it cyclical in nature.
The business faces regulatory and operational risks related to health standards, labour laws, and changing consumer preferences.

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About The Companies

Williams-Sonoma (WSM)

Williams‑Sonoma Inc (WSM) is a US-based premium home‑furnishings retailer operating brands such as Williams‑Sonoma, Pottery Barn, West Elm, Rejuvenation and Mark and Graham. The business combines physical stores with a growing e‑commerce platform and private‑label products, targeting mid-to-upscale consumers. With a market capitalisation around $23.25B, performance is driven by consumer spending, product mix, pricing power and the company’s omnichannel execution. Strengths include strong brand recognition, direct-to-consumer margins and ongoing digital investment; risks include cyclicality in discretionary spending, supply‑chain pressures, rising input costs and retail competition. Investors should consider valuation, earnings consistency and sensitivity to economic cycles. This content is general educational information and not personalised financial advice — values can rise or fall and past performance is not a reliable guide. Suitability depends on personal circumstances; consult a regulated adviser before making investment decisions.

Darden (DRI)

Darden Restaurants, Inc. (DRI) operates a portfolio of full‑service casual‑dining restaurants in the United States, with well‑known brands such as Olive Garden and LongHorn Steakhouse. The company primarily runs company‑owned restaurants and earns revenue from dine‑in, takeout, delivery and catering. With a market capitalisation near $21.8 billion, Darden’s scale supports centralised purchasing, marketing and operational capabilities that can help margins and cash flow generation. Key performance indicators for investors include same‑restaurant sales, unit growth, average check, and margin trends driven by food and labour costs. Strengths include brand recognition and operating scale; risks include sensitivity to consumer discretionary spending, commodity and labour inflation, and competitive pressure from fast‑casual and delivery platforms. Darden has historically returned capital to shareholders via dividends and buybacks, but past behaviour is not a guarantee of future policy. This summary is for general educational purposes only and not personalised investment advice. Investors should review financials and consider their objectives or consult a qualified adviser.

Williams-Sonoma (WSM) Next Earnings Date

Williams-Sonoma (WSM) is expected to report its next earnings on March 18, 2026, covering the fiscal Q4 2026 period ending in early February. This date aligns with the company's historical pattern of mid-March releases for fiscal year-end results, though it remains unconfirmed by management. Investors should monitor official announcements for any updates.

Williams-Sonoma (WSM) Next Earnings Date

Williams-Sonoma (WSM) is expected to report its next earnings on March 18, 2026, covering the fiscal Q4 2026 period ending in early February. This date aligns with the company's historical pattern of mid-March releases for fiscal year-end results, though it remains unconfirmed by management. Investors should monitor official announcements for any updates.

Which Baskets Do They Appear In?

The Umansky Effect: Riding the Luxury Housing Wave

This curated collection focuses on companies set to benefit from the continued strength in luxury real estate. Based on insights from The Agency CEO Mauricio Umansky, these stocks span premium homebuilders, high-end material suppliers, and luxury furnishing brands positioned to thrive in a resilient high-end housing market.

Published: July 1, 2025

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Which Baskets Do They Appear In?

The Umansky Effect: Riding the Luxury Housing Wave

This curated collection focuses on companies set to benefit from the continued strength in luxury real estate. Based on insights from The Agency CEO Mauricio Umansky, these stocks span premium homebuilders, high-end material suppliers, and luxury furnishing brands positioned to thrive in a resilient high-end housing market.

Published: July 1, 2025

Explore Basket

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Comparison Snapshot

Why It's Moving

WSM Stock Warning: Why Analysts See -3% Downside Risk

WSM Stock Warning: Why Analysts See -3% Downside Risk