UPDATE: Yum! Downgraded by JP Morgan on New Reporting Structure

On Monday, J.P. Morgan downgraded shares of Yum! Brands (NYSE: YUM) from Overweight to Neutral and raised the price target $77 to $80.

Analyst John Ivankoe's downgrade is to reflect Yum's new reporting structure, which has KFC, Taco Bell and Pizza Hut “reported globally (excluding China and India) as opposed to previous consolidated three-brand results in US and YRI.”

To reflect capital needs of the business, “China/India would trade without balance sheet debt,” with “the combined US/YRI business (now resegmented by brand) operating under one debt-heavy capital structure.”

The analyst expects the stock to price in “a China recovery through F15 and on usually low near-term predictability (high or low) in quarterly trends.”

Ivankoe sees “modest upside” on a tightened sum-of-the-parts analysis, and sees an actual breakup of the company as “unlikely.”

Shares of Yum! are down 0.34 percent to $76.08 in Monday's pre-market trading.