EXHIBIT 11 GRACO INC. AND SUBSIDIARIES COMPUTATION OF NET EARNINGS PER COMMON SHARE (Unaudited) Thirteen Weeks Ended -------------------- March 31, 2000 March 26, 1999 -------------- -------------- (In thousands except per share amounts) Net earnings applicable to common shareholders for basic and diluted earnings per share $14,975 $11,201 -------------- -------------- Weighted average shares outstanding for basic earnings per share 20,393 20,104 Dilutive effect of stock options computed using the treasury stock method and the average market price 319 502 Weighted average shares outstanding for diluted earnings per share 20,712 20,606 Basic earnings per share $ .73 $ .56 -------------- -------------- Diluted earnings per share $ .72 $ .54 -------------- --------------