This anecdote is a common one to share when the intent is to bemoan the intelligence or decline of America, but I am starting to think there's more to this story.
Consider a few points:
First off-- being bad at math doesn't mean a general lack of intelligence. I've met plenty of college educated, liberal minded people who openly say that math is their weakness. I've met people with masters degrees who struggle with math. The American student loan crisis should be evidence enough that even college educated people struggle with math.
Second-- the decision to buy a burger is not one that is often carefully measured and considered. It's more of a "do I pull off this highway right now to get this burger?" and in that moment, you're acting more on instinct that rationality. So in that moment yes, 1/3 < 1/4, it's not ideal but our brain makes a lot of other more serious fallacies.
Third-- does anyone here really doubt that if you explained to those focus groups that 1/3 is larger than 1/4 they still wouldn't understand? I don't. I'm sure those focus groups quickly did understand, but the conclusion drawn was that unless it was explained to the broader public, everyone would make the same incorrect initial assumption.
Fourth-- let's just be honest, fractions are confusing. 1/3 > 1/4 is confusing to read and understand quickly. I still can make this mistake from time to time. In the special case of 1/4 vs 1/3 even text is confusing. "Quarter pounder" just sounds larger than "third pounder", "quarter" is a heftier word. If you don't think sound informs meaning, why do so many sports cars have "Z" in their model name instead of "K"? The only way this would be really clear is if McDonalds was calling it a ".25 pounder" and then A&W could launch a ".33 pounder"
In my opinion, wielding this anecdote as an example about the sad state of anything, people, intelligence, America, etc, is ill-informed. If it's unfortunate that American's often confuse fractions, it's even more unfortunate that the confusion is easily turned into a powerful meme that doesn't stand up to scrutiny.