It wasn't revealed at all until the founder's memoirs in 2007, and it wasn't reported widely until this [1] 2014 article.
0: https://awrestaurants.com/blog/aw-third-pound-burger-fractio...
1: https://www.nytimes.com/2014/07/27/magazine/why-do-americans...
https://awrestaurants.com/blog/aw-third-pound-burger-fractio...
So tldr; some people in a private focus group questioned the value of a 1/3 pound burger over the same priced 1/4 pound burger. It's not indicative of any system numerical illiteracy.
I will add there were no actual data released - it's solely based on an anecdote from a A&W restaurant executive.
https://skeptics.stackexchange.com/questions/28745/did-aw-cu...
I would not say Americans in general are dumb though. I would say that:
1) they are under-educated ( and then we can also get about the quality of education for those that were educated ) 2) they are very heavily propagandized
Most places that report on this say that the third pounder was cheaper and that Americans preferred the taste, but they didn't buy it because of the name and their poor math skills. But its name was changed to "Papa Burger," and it still didn't become the quarter pounder killer it's portrayed as.
But of course my point was never about the burger. It was just that many aren't good with numbers and finance (in the edit with the links).
Also, the 1/4 or 1/3 is referring to the raw, uncooked meat only. So in theory you can add 1400 lbs of lettuce to make something larger than my car. (Which is terrible, since lettuce is where you pick up all the disease these days - everyone here should order all their food without any lettuce)