McDonald’s started as simple drive-in restaurant, then located in San Bernardino in California in the year 1948 and has since then grown to be the number 1 fast food store. It is estimated that over 40 million customers visits their chains per day. Its chains are spread in over 120 countries, with an estimated 30, 000 stores (Macdonald’s, 2009).
Its main revenue is generated from eight primary countries including the US, Canada, France, Japan, Germany, UK and Australia. For the chain store to remain competitive it must establish competitive advantage over its main competitors such as KFC and the Burger King. The food chain store domestic market is in the US and its domestic environment can be segmented based on its domestic PEST analysis.