Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 stocks made the list for top value stocks in the Hotels, Restaurants & Leisure industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Hotels, Restaurants & Leisure Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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4 Undervalued Hotels, Restaurants & Leisure Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Hotels, Restaurants & Leisure industry for Wednesday, November 19, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Hotels, Restaurants & Leisure industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Arcos Dorados Holdings Inc.’s Value Grade

Value Grade:

Arcos Dorados Holdings Inc. operates as a franchisee of McDonald’s restaurants. The company has the exclusive right to own, operate, and grant franchises of McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. The company was founded in 2007 and is based in Montevideo, Uruguay.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Arcos Dorados Holdings Inc. has a Value Score of 93, which is considered to be undervalued.

When you look at Arcos Dorados Holdings Inc.’s price-to-sales ratio at 0.34 compared to the industry median at 1.17, this company has a lower price relative to revenue compared to its peers. This could make Arcos Dorados Holdings Inc.’s stock more attractive for value investors.

Arcos Dorados Holdings Inc.’s price-earnings ratio is 6.30 compared to the industry median at 23.90. This means it has a lower share price relative to earnings compared to its peers. This could make Arcos Dorados Holdings Inc. more attractive for value investors.

Now, let’s assess Arcos Dorados Holdings Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 6.2, when compared to the industry median of 12.6, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Arcos Dorados Holdings Inc.’s shareholder yield is higher than its industry median ratio of 0.90%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Arcos Dorados Holdings Inc.’s price-to-book ratio is lower than its industry median ratio of 2.97. This could make Arcos Dorados Holdings Inc. more attractive to investors looking for a new addition to their portfolio.

Caesars Entertainment, Inc.’s Value Grade

Value Grade:

Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, brands, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 32 jurisdictions in North America, and iGaming in five jurisdictions in North America; sports betting from retail and online sportsbooks; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. The company was founded in 1937 and is based in Reno, Nevada.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Caesars Entertainment, Inc. has a Value Score of 93, which is considered to be undervalued.

Caesars Entertainment, Inc.’s price-to-book ratio is higher than its peers. This could make Caesars Entertainment, Inc. less attractive for value investors when compared to the industry median at 2.97.

You can read more about Caesars Entertainment, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Dave & Buster's Entertainment, Inc.’s Value Grade

Value Grade:

Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families in North America. Its venues offer a menu of entrées and appetizers, as well as a selection of alcoholic and non-alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company also offers food, drinks, and entertainment, including bowling, laser tag, arcade games, and virtual reality. The company operates its venues under the Dave & Buster’s and Main Event brands. Dave & Buster's Entertainment, Inc. was founded in 1982 and is headquartered in Coppell, Texas.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Dave & Buster's Entertainment, Inc. has a Value Score of 64, which is considered to be undervalued.

Dave & Buster's Entertainment, Inc.’s price-earnings ratio is 55.2 compared to the industry median at 23.9. This means that it has a higher price relative to its earnings compared to its peers. This makes Dave & Buster's Entertainment, Inc. less attractive for value investors.

Dave & Buster's Entertainment, Inc.’s price-to-book ratio is lower than its peers. This could make Dave & Buster's Entertainment, Inc. fairly attractive for value investors when compared to the industry median at 2.97.

You can read more about Dave & Buster's Entertainment, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Target Hospitality Corp.’s Value Grade

Value Grade:

Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. It operates in two segments, Hospitality & Facilities Services - South and Government. The company owns a network of specialty rental accommodation units. It also provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation facilities, workforce community management, concierge, and laundry services. It serves the U.S. government contractors and investment grade natural resource development companies. Target Hospitality Corp. was founded in 1978 and is headquartered in The Woodlands, Texas.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Target Hospitality Corp. has a Value Score of 65, which is considered to be undervalued.

Target Hospitality Corp.’s price-to-book ratio is higher than its peers. This could make Target Hospitality Corp. less attractive for value investors when compared to the industry median at 2.97.

You can read more about Target Hospitality Corp.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Hotels, Restaurants & Leisure Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Hotels, Restaurants & Leisure stocks as well as other industrys.

Choosing Which of the 4 Best Hotels, Restaurants & Leisure Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Arcos Dorados Holdings Inc. stock has a Value Grade of A.
• Caesars Entertainment, Inc. stock has a Value Grade of A.
• Dave & Buster's Entertainment, Inc. stock has a Value Grade of B.
• Target Hospitality Corp. stock has a Value Grade of B.

Now that you have a bit more background about each of the 4 undervalued stocks in the Hotels, Restaurants & Leisure industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Hotels, Restaurants & Leisure Stocks

Want to learn more about Hotels, Restaurants & Leisure stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 3 Undervalued Hotels, Restaurants & Leisure Stocks for Wednesday, November 19
• Is McDonald's Corporation (MCD) Overvalued?
• 5 Undervalued Hotels, Restaurants & Leisure Stocks for Tuesday, November 18
• Is McDonald's Corporation (MCD) Overvalued?

AAII Disclaimer

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