Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 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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5 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 5 undervalued stocks in the Hotels, Restaurants & Leisure industry for Monday, March 23, 2026. 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.
| Company | Ticker | Price/Sales | Price/Earnings | EV/EBITDA | Shareholder Yield | Price/Book Value | Price/Free Cash Flow | Value Grade |
| BJ's Restaurants, Inc. | BJRI | 0.55 | 16.2 | 9.5 | 7.3% | 2.02 | 18.8 | B |
| Brightstar Lottery PLC | BRSL | 1.00 | na | 10.2 | 13.6% | 2.73 | na | B |
| Chagee Holdings Limited | CHA | 0.12 | 13.7 | 11.6 | (92.8%) | 1.69 | 0.8 | B |
| Travel + Leisure Co. | TNL | 1.13 | 19.9 | 10.1 | 9.4% | na | 12.0 | B |
| Xponential Fitness, Inc. | XPOF | 0.61 | na | 7.7 | (7.1%) | na | 10.3 | B |
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.
BJ's Restaurants, Inc.’s Value Grade
Value Grade:
| Metric | Score | BJRI | Industry Median |
| Price/Sales | 22 | 0.55 | 1.13 |
| Price/Earnings | 43 | 16.2 | 24.9 |
| EV/EBITDA | 32 | 9.5 | 12.9 |
| Shareholder Yield | 9 | 7.3% | 1.5% |
| Price/Book Value | 54 | 2.02 | 2.57 |
| Price/Free Cash Flow | 50 | 18.8 | 18.1 |
BJ's Restaurants, Inc. operates full-service restaurants in the United States. Its restaurants offer pizzas, crafts and other beers, appetizers, entrées, wings, pastas, sandwiches, specialty salads, and Pizookie desserts. The company was formerly known as Chicago Pizza & Brewery, Inc. and changed its name to BJ's Restaurants, Inc. in August 2004. BJ's Restaurants, Inc. was founded in 1978 and is based in Huntington Beach, California.
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.
BJ's Restaurants, Inc. has a Value Score of 75, which is considered to be undervalued.
When you look at BJ's Restaurants, Inc.’s price-to-sales ratio at 0.55 compared to the industry median at 1.13, this company has a lower price relative to revenue compared to its peers. This could make BJ's Restaurants, Inc.’s stock more attractive for value investors.
BJ's Restaurants, Inc.’s price-earnings ratio is 16.20 compared to the industry median at 24.85. This means it has a lower share price relative to earnings compared to its peers. This could make BJ's Restaurants, Inc. more attractive for value investors.
Now, let’s assess BJ's Restaurants, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 9.5, when compared to the industry median of 12.9, 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. BJ's Restaurants, Inc.’s shareholder yield is higher than its industry median ratio of 1.50%. 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. BJ's Restaurants, Inc.’s price-to-book ratio is lower than its industry median ratio of 2.57. This could make BJ's Restaurants, Inc. more attractive to investors looking for a new addition to their portfolio.
Lastly, let’s take a look at BJ's Restaurants, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. BJ's Restaurants, Inc.’s price-to-free-cash-flow ratio is higher than its industry median ratio of 18.10. This could make BJ's Restaurants, Inc. less attractive because the higher P/FCF ratio indicates that BJ's Restaurants, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.
Brightstar Lottery PLC’s Value Grade
Value Grade:
| Metric | Score | BRSL | Industry Median |
| Price/Sales | 34 | 1.00 | 1.13 |
| Price/Earnings | na | na | 24.9 |
| EV/EBITDA | 36 | 10.2 | 12.9 |
| Shareholder Yield | 2 | 13.6% | 1.5% |
| Price/Book Value | 64 | 2.73 | 2.57 |
| Price/Free Cash Flow | na | na | 18.1 |
Brightstar Lottery PLC provides lottery solutions in the United States, Italy, rest of Europe, and internationally. The company designs, sells, operates, and leases a suite of point-of-sale machines that reconciles lottery funds between the retailer and the lottery authority; operates and provides lottery transaction processing systems; produces instant ticket games; and offers printing services, such as instant ticket marketing plans and graphic design, programming, packaging, shipping, and delivery services, as well as lottery management services; instant lottery systems; and iLottery, a platform that provides access to eInstant and draw games. It also processes commercial transactions, such as prepaid cellular telephone recharges, bill payments, e-vouchers and retail-based programs, electronic tax payments, prepaid card recharges, stamp duty, and money transfer services; sells additional machines and central computers to expand existing systems or replace existing equipment; and licenses related software. In addition, the company provides marketing services, such as retail optimization and lottery brand awareness campaigns; telephone support, software and hardware maintenance, software development, and other professional services; and ancillary maintenance and support services for systems, equipment, and software. The company was formerly known as International Game Technology PLC and changed its name to Brightstar Lottery PLC in July 2025. Brightstar Lottery PLC was founded in 1976 and is headquartered in London, the United Kingdom.
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.
Brightstar Lottery PLC has a Value Score of 77, which is considered to be undervalued.
Brightstar Lottery PLC’s price-to-book ratio is lower than its peers. This could make Brightstar Lottery PLC more attractive for value investors when compared to the industry median at 2.57.
You can read more about Brightstar Lottery PLC’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.
Chagee Holdings Limited’s Value Grade
Value Grade:
| Metric | Score | CHA | Industry Median |
| Price/Sales | 6 | 0.12 | 1.13 |
| Price/Earnings | 34 | 13.7 | 24.9 |
| EV/EBITDA | 43 | 11.6 | 12.9 |
| Shareholder Yield | 92 | (92.8%) | 1.5% |
| Price/Book Value | 47 | 1.69 | 2.57 |
| Price/Free Cash Flow | 2 | 0.8 | 18.1 |
Chagee Holdings Limited, through its subsidiaries, owns, operates, and franchises teahouses under the CHAGEE brand name in the People’s Republic of China and internationally. The company engages in sale of tea drinks and related raw materials, packaging, teahouse equipment and other supplies. It operates through online platforms. The company was founded in 2017 and is based in Shanghai, the People’s Republic of China.
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.
Chagee Holdings Limited has a Value Score of 70, which is considered to be undervalued.
Chagee Holdings Limited’s price-earnings ratio is 13.7 compared to the industry median at 24.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Chagee Holdings Limited more attractive for value investors.
Chagee Holdings Limited’s price-to-book ratio is higher than its peers. This could make Chagee Holdings Limited less attractive for value investors when compared to the industry median at 2.57.
You can read more about Chagee Holdings Limited’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.
Travel + Leisure Co.’s Value Grade
Value Grade:
| Metric | Score | TNL | Industry Median |
| Price/Sales | 37 | 1.13 | 1.13 |
| Price/Earnings | 52 | 19.9 | 24.9 |
| EV/EBITDA | 35 | 10.1 | 12.9 |
| Shareholder Yield | 5 | 9.4% | 1.5% |
| Price/Book Value | na | na | 2.57 |
| Price/Free Cash Flow | 32 | 12.0 | 18.1 |
Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as offers consumer financing in connection with the sale of VOIs; and property management services at resorts; and This segment also experiences under hospitality and leisure brands, including Club Wyndham, WorldMark, Margaritaville Vacation Club, Sports Illustrated Resorts, Eddie Bauer Adventure Club, And Accor Vacation Club. The Travel and Membership segment operates various travel businesses, including vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers business-to-business private-label travel club solutions and facilitates bookings. Travel + Leisure Co. has a strategic alliance with Hornblower Group, Inc. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.
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.
Travel + Leisure Co. has a Value Score of 80, which is considered to be undervalued.
Travel + Leisure Co.’s price-earnings ratio is 19.9 compared to the industry median at 24.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Travel + Leisure Co. more attractive for value investors.
You can read more about Travel + Leisure Co.’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.
Xponential Fitness, Inc.’s Value Grade
Value Grade:
| Metric | Score | XPOF | Industry Median |
| Price/Sales | 24 | 0.61 | 1.13 |
| Price/Earnings | na | na | 24.9 |
| EV/EBITDA | 22 | 7.7 | 12.9 |
| Shareholder Yield | 72 | (7.1%) | 1.5% |
| Price/Book Value | na | na | 2.57 |
| Price/Free Cash Flow | 26 | 10.3 | 18.1 |
Xponential Fitness, Inc., through its subsidiaries, operates as a boutique fitness brands franchisor in North America. The company’s brands portfolio consist of Club Pilates, a Pilates facility franchisor; StretchLab, a fitness concept offering one-on-one assisted stretching services; YogaSix, a yoga concept; Pure Barre, a total body workout concept that uses the ballet barre to perform small isometric movements; and BFT, a high-intensity interval training concept that combines functional, high-energy strength, cardio, and conditioning-based classes to achieve the unique health of its members. Xponential Fitness, Inc. was founded in 2017 and is headquartered in Irvine, California.
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.
Xponential Fitness, Inc. has a Value Score of 73, which is considered to be undervalued.
You can read more about Xponential Fitness, 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.
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 5 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.
- BJ's Restaurants, Inc. stock has a Value Grade of B.
- Brightstar Lottery PLC stock has a Value Grade of B.
- Chagee Holdings Limited stock has a Value Grade of B.
- Travel + Leisure Co. stock has a Value Grade of B.
- Xponential Fitness, Inc. stock has a Value Grade of B.
Now that you have a bit more background about each of the 5 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.
- 5 Undervalued Hotels, Restaurants & Leisure Stocks for Monday, March 23
- Is Booking Holdings Inc. (BKNG) Overvalued?
- Is McDonald's Corporation (MCD) Overvalued?
- 4 Undervalued Hotels, Restaurants & Leisure Stocks for Friday, March 20
AAII Disclaimer
We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.
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