EXHIBIT 11 GRACO INC. AND SUBSIDIARIES COMPUTATION OF NET EARNINGS PER COMMON SHARE (Unaudited) Thirteen Weeks Ended March 31, 1994 April 1, 1994 (In thousands except per share amounts) Net earnings applicable to common stock: Net earnings $5,436 $1,836 Less dividends on preferred stock 19 19 $5,417 $1,817 Average number of common and common equivalent shares outstanding: Average number of common shares outstanding 11,416 11,515 Dilutive effect of stock options computed on the treasury stock method 83 65 11,499 11,580 Net earnings per common share and common equivalent share $0.47 $0.16 Primary and fully diluted earnings per share are substantially the same.