Study: These states spend the most on fast food...
Southern states top the list of places that spend the highest share of income on fast food.
A new analysis from WalletHub reveals that residents in Mississippi (0.48%) spend the most on fast food as a share of median monthly household income. Arkansas, Louisiana, New Mexico, West Virginia and Alabama were next in line, all notching 0.44%.
To identify where fast food purchases take up the largest share of people’s income, WalletHub examined the prices of fast-food burgers, pizza and fried chicken sandwiches across all 50 states. The combined costs were then compared with each state’s median household income.
[READ MORE: Study: Consumers to cut back on restaurant spending — even at QSRs]
States on the East Coast with more affluent populations made up the bottom of the list. New Jersey had the lowest portion of fast food spending (0.27%), followed by Maryland (0.28%), Massachusetts (0.29%) Utah (0.29%), Connecticut (0.30%) and New Hampshire (0.30%).
“With fast food prices rising by an average of 60% over the past decade, it’s fair for consumers to wonder whether the convenience of having food in minutes is really even worth it anymore,” said Chip Lupo, WalletHub writer and analyst. “Where you live can have a big impact on how much you shell out for fast food, too; it costs around 1.8 times more in the most expensive states than the cheapest states, relative to the median income.”
WalletHub shared a deeper analysis of the top three states in its report:
Mississippi
“The main reason why Mississippi ranks first is that it has the lowest median household income in the country, at $56,447. When it comes to fast food prices, it actually ranks toward the bottom of the country. It’s in the bottom half states for both pizza and fried chicken sandwiches, for example, and it’s only the 32nd-most expensive for burgers.
However, since residents’ median earnings are low, fast food still costs a large percentage of their income.”
Arkansas
“Arkansas has the second-most costly fast food relative to residents’ earnings, with a burger, a small pizza and a fried chicken sandwich totaling 0.44% of the median monthly household income. While this percentage may not seem high at first glance, it adds up considering that it only accounts for three meals out of an entire month.
Arkansas is the fifth-most expensive state for burgers, but it also has the lowest pizza price and the second-lowest fried chicken sandwiches. The state’s high ranking for fast-food expensiveness is driven less by prices themselves and more by its fourth-lowest median household income at $60,773, which makes even lower-cost meals less affordable.”
Louisiana
“Louisiana is the 33rd-most expensive state for burgers and the 35th-most expensive for chicken sandwiches, though it's ninth-least expensive for pizza. That means Louisiana has relatively affordable fast-food prices overall. Still, even with these moderate prices, residents end up spending a larger share of their earnings on fast food.
A key factor behind this is that Louisiana has the third-lowest median household income in the nation, at $60,756. When this is combined with otherwise moderate fast-food prices, it results in residents paying a disproportionately high amount for their fast food.”
