Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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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6 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 6 undervalued stocks in the Hotels, Restaurants & Leisure industry for Monday, September 28, 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.

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. It has the exclusive right to own, operate, and grant franchises of McDonald’s restaurants in 21 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. Arcos Dorados Holdings Inc. 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 85, which is considered to be undervalued.

When you look at Arcos Dorados Holdings Inc.’s price-to-sales ratio at 0.31 compared to the industry median at 1.29, 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 5.90 compared to the industry median at 20.40. 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 5.6, when compared to the industry median of 12.8, 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 0.60%. 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 2.53. This could make Arcos Dorados Holdings Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Arcos Dorados Holdings Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Arcos Dorados Holdings Inc.’s price-to-free-cash-flow ratio is higher than its industry median ratio of 16.00. This could make Arcos Dorados Holdings Inc. less attractive because the higher P/FCF ratio indicates that Arcos Dorados Holdings 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.

Bloomin' Brands, Inc.’s Value Grade

Value Grade:

Bloomin' Brands, Inc., through its subsidiaries, owns and operates casual, polished casual, and fine dining restaurants in the United States and internationally. The company operates through U.S. and International Franchise segments. Its restaurant portfolio has four concepts, including Outback Steakhouse, a casual steakhouse restaurant; Carrabba’s Italian Grill that offers authentic Italian cuisine; Bonefish Grill; and Fleming’s Prime Steakhouse & Wine Bar, a contemporary steakhouse. Bloomin' Brands, Inc. was founded in 1988 and is based in Tampa, 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.

Bloomin' Brands, Inc. has a Value Score of 76, which is considered to be undervalued.

Bloomin' Brands, Inc.’s price-earnings ratio is 24.0 compared to the industry median at 20.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Bloomin' Brands, Inc. less attractive for value investors.

Bloomin' Brands, Inc.’s price-to-book ratio is higher than its peers. This could make Bloomin' Brands, Inc. less attractive for value investors when compared to the industry median at 2.53.

You can read more about Bloomin' Brands, 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.

Churchill Downs Incorporated’s Value Grade

Value Grade:

Churchill Downs Incorporated operates live and historical racing entertainment venues, online wagering businesses, and regional casino gaming properties in the United States. It operates through three segments: Live and Historical Racing, Wagering Services and Solutions, and Gaming. The Live and Historical Racing segment engages in live and historical pari-mutuel racing related activities at Churchill Downs Racetrack and its historical racing properties in Kentucky, Virginia, and New Hampshire; provides racing event-related services, including admissions, personal seat licenses, sponsorships, television rights, and other miscellaneous services, as well as food and beverages services. The Wagering Services and Solutions engages in pari-mutuel wagers through TwinSpires, which operates the online horse racing wagering business for TwinSpires.com, BetAmerica.com, and other white-label platforms; facilitates dollar wagering; provides the Bloodstock Research Information Services platform for horse racing statistical data; offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides technology services to third parties. This segment also operates retail and online sports betting businesses, United Tote, which manufactures and operates pari-mutuel wagering systems for racetracks, OTBs, and other pari-mutuel wagering businesses, and Exacta, which provides central determinant system technology in HRMs. The Gaming segment operates the casino properties and associated racetracks, which include slot machines, table games, video lottery terminals, video poker, HRMs, ancillary food and beverage services, hotel services, commission on pari-mutuel wagering, racing event-related services, and other miscellaneous operations. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.

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.

Churchill Downs Incorporated has a Value Score of 64, which is considered to be undervalued.

Churchill Downs Incorporated’s price-earnings ratio is 13.6 compared to the industry median at 20.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Churchill Downs Incorporated more attractive for value investors.

Churchill Downs Incorporated’s price-to-book ratio is lower than its peers. This could make Churchill Downs Incorporated more attractive for value investors when compared to the industry median at 2.53.

You can read more about Churchill Downs Incorporated’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.

Melco Resorts & Entertainment Limited’s Value Grade

Value Grade:

Melco Resorts & Entertainment Limited develops, owns, and operates casino gaming and resort facilities in Macau, the Philippines, Cyprus, and internationally. It operates through City of Dreams, Studio City, Altira Macau, Mocha, City of Dreams Manila, City of Dreams Mediterranean and Other, Other Operations, and Corporate and Other segments. The company owns and operates City of Dreams, an integrated resort that has gaming tables and gaming machines; suites and villas; food and beverage outlets; retail outlets; a wet stage performance theater; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spas and salons, and banquet and meeting facilities in Cotai, Macau. It also operates Studio City, a cinematically themed integrated resort with gaming facilities, hotel, entertainment, retail, and food and beverage outlets in Cotai, Macau; and Altira Macau, an integrated resort, which offers gaming tables and gaming machines, hotel rooms, dining and casual restaurants, and recreation and leisure facilities in Taipa, Macau. In addition, the company owns and operates Mocha Clubs, which are clubs with gaming machines in Macau; City of Dreams Manila, an integrated resort in the Entertainment City complex in Manila; City of Dreams Mediterranean, an integrated resort in Limassol, Cyprus; and three satellite casinos in Nicosia, Ayia Napa, and Paphos in Cyprus. Further, it is involved in the operation of the Sri Lanka Casino and management of Nüwa Sri Lanka located in City of Dreams Sri Lanka, as well as development projects in other countries. The company was formerly known as Melco Crown Entertainment Limited and changed its name to Melco Resorts & Entertainment Limited in April 2017. The company was founded in 2003 and is based in Central, Hong Kong. Melco Resorts & Entertainment Limited is a subsidiary of Melco Leisure and Entertainment Group Limited.

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.

Melco Resorts & Entertainment Limited has a Value Score of 99, which is considered to be undervalued.

Melco Resorts & Entertainment Limited’s price-earnings ratio is 7.9 compared to the industry median at 20.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Melco Resorts & Entertainment Limited more attractive for value investors.

You can read more about Melco Resorts & Entertainment 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.

Norwegian Cruise Line Holdings Ltd.’s Value Grade

Value Grade:

Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally. It offers itineraries to destinations, such as Europe, Asia, Australia, New Zealand, South America, Africa, Canada, Bermuda, the Caribbean, and Alaska; and inter-island itinerary in Hawaii. The company also provides features, amenities, and activities, including various accommodations, dining venues, bars and lounges, spas, casino and retail shopping areas, and entertainment choices; shore excursions at each port of call, and air transportation and hotel packages for stays before or after a voyage. It offers its products and services under the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. The company was founded in 1966 and is based in Miami, 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.

Norwegian Cruise Line Holdings Ltd. has a Value Score of 69, which is considered to be undervalued.

Norwegian Cruise Line Holdings Ltd.’s price-earnings ratio is 9.2 compared to the industry median at 20.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Norwegian Cruise Line Holdings Ltd. more attractive for value investors.

Norwegian Cruise Line Holdings Ltd.’s price-to-book ratio is lower than its peers. This could make Norwegian Cruise Line Holdings Ltd. more attractive for value investors when compared to the industry median at 2.53.

You can read more about Norwegian Cruise Line Holdings Ltd.’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.

RCI Hospitality Holdings, Inc.’s Value Grade

Value Grade:

RCI Hospitality Holdings, Inc., through its subsidiaries, engages in the hospitality and related businesses in the United States. The company operates through Nightclubs, Bombshells, and Other segments. It owns and/or operates upscale adult nightclubs under the Rick’s Cabaret, Jaguars Club, Tootsie’s Cabaret, XTC Cabaret, Club Onyx, Hoops Cabaret and Sports Bar, Scarlett’s Cabaret, Diamond Cabaret, Cheetah Gentlemen's Club, PT's Showclub, Playmates Club, Country Rock Cabaret, Temptations Adult Cabaret, Foxy’s Cabaret, Vivid Cabaret, Downtown Cabaret, Cabaret East, The Seville, Silver City Cabaret, Heartbreakers Gentlemen's Club, Kappa Men’s Club, Baby Dolls, and Chicas Locas brands; and a dance club under the Studio 80 brand. The company also owns and operates restaurants and sports bars under the Bombshells Restaurant & Bar brand. In addition, it owns national industry conventions and trade shows; national industry trade publications; and national industry award shows, as well as industry and social media websites, which serves adult nightclubs industry and the adult retail products industry. Further, it holds license to sell Robust Energy Drink in the United States. The company was formerly known as Rick’s Cabaret International, Inc. and changed its name to RCI Hospitality Holdings, Inc. in August 2014. RCI Hospitality Holdings, Inc. was founded in 1983 and is headquartered in Houston, 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.

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

RCI Hospitality Holdings, Inc.’s price-to-book ratio is higher than its peers. This could make RCI Hospitality Holdings, Inc. less attractive for value investors when compared to the industry median at 2.53.

You can read more about RCI Hospitality Holdings, 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 6 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.
• Bloomin' Brands, Inc. stock has a Value Grade of B.
• Churchill Downs Incorporated stock has a Value Grade of B.
• Melco Resorts & Entertainment Limited stock has a Value Grade of A.
• Norwegian Cruise Line Holdings Ltd. stock has a Value Grade of B.
• RCI Hospitality Holdings, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Hotels, Restaurants & Leisure Stocks for Friday, September 25
• Why Genius Sports Limited’s (GENI) Stock Is Up 11.75%
• Why Genius Sports Limited’s (GENI) Stock Is Up 8.53%
• Why High Roller Technologies, Inc.’s (ROLR) Stock Is Down 5.93%

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