By Alexandria Sage

LOS ANGELES (Reuters) - A proposed merger of Arby's owner Triarc Cos Inc TRY.N and Wendy's International Inc (WEN.N: Quote, Profile, Research) could boost incremental EBITDA by $100 million within two to three years, Triac Chief Executive Roland Smith said on Wednesday.

Speaking on a conference call about a week after the deal was first announced, Smith said improvements at the Wendy's chain in earnings before interest, tax, depreciation and amortization (EBITDA) would come in part from "significant opportunities" in labor costs and controllable expenses.

Last week, Triarc, the investment arm of billionaire investor Nelson Peltz, announced that Wendy's had agreed to be bought in a deal valued at about $2.4 billion.

The third-largest U.S. hamburger restaurant owner, which put itself up for sale last June, has been struggling to regain market share lost to rivals, whose results have been boosted by international sales. Peltz controls nearly 10 percent of Wendy's and had pressed for better results at the chain.

The deal is expected to close in the second half of this year.

On Wednesday, Smith said goals for the combined company, which will now include more than 10,000 U.S restaurants and some $12.5 billion in system-wide sales, were profit margin improvement, revitalizing the Wendy's brand and making its corporate structure more efficient.

The combined company will trade as WEN on the New York Stock Exchange with Smith as CEO. Arby's and Wendy's will operate autonomously, with Smith also serving as CEO of the Wendy's brand, replacing current CEO Kerrii Anderson.

Arby's is the second-largest U.S. sandwich chain. It could sustain another 1,500 restaurants over time on top of its current 3,700, Smith said.