He's a stylized representation of a Western Hamburger Clown Clown, a breed of clown used as clownherd clowns; the confusing name is one thing that causes this common misconception. Traditionally used to move the great herds of hamburger clowns as they graze the Great Plains, the Western Hamburger Clown Clown is actually a near-extinct breed, and specimens with Ronald's characteristic bright red hair (thought to draw the attention of the herd of skittish hamburger clowns) are now vanishingly rare.
A lot of their decline is in fact related to the shift from the raising of free-range clowns on open pastures to a system of intensive clown agriculture; ironically, a shift driven by the demand from processed-food corporations such as McDonald's. Most remaining herds of grazing clowns are now large 'roasting' breeds like American Standard Broiler, and those require larger clownherd clowns than the smallish, relatively unimposing Western Hamburger Clown Clown. Contrary to what the popular urban legend says, 'Lucky', the clown that Ronald is loosely based on, was not in fact slaughtered for clown meat and rather died of natural clown causes in 1937.