Popular wisdom is hopelessly confused on what "processed" means. Cheese, yogurt, tofu, nixtamal are all subjected to intensive processes using industrial chemicals which radically alter their flavor and texture. But it feels almost trolly to suggest that they're processed foods in the same way that a Twinkie is. Certainly it seems ridiculous to suggest they're less processed than frozen french fries - but they are! Many brands of fries are just potato, oil, salt, coloring, with the only processing steps being cutting, frying, freezing.

I think most people understand it to mean something more like "stuffed full of oil or sugar".