EXHIBIT NO. 11 GRACO INC. AND SUBSIDIARIES COMPUTATION OF NET EARNINGS PER COMMON SHARE (Unaudited) Thirteen Weeks Ended Thirty-Nine Weeks Ended Sept. 30, 1994 Sept. 24, 1993 Sept. 30, 1994 Sept. 24, 1993 (In thousands except per share amounts) Net earnings applicable to common stock: Net earnings $4,248 $3,463 $10,279 $10,149 Less dividends on preferred stock 19 19 56 56 $4,229 $3,444 $10,223 $10,093 Average number of common and common equivalent shares outstanding: Average number of common shares outstanding 11,554 11,393 11,554 11,329 Dilutive effect of stock options computed on the treasury stock method 25 87 58 75 11,579 11,480 11,612 11,404 Net earnings per common share and common equivalent share $0.37 $0.30 $0.88 $0.88 Primary and fully diluted earnings per share are substantially the same.