EXHIBIT 11 GRACO INC. AND SUBSIDIARIES COMPUTATION OF NET EARNINGS PER COMMON SHARE (Unaudited) Thirteen Weeks Ended Thirty-Nine Weeks Ended ----------------------------- ----------------------------- Sept. 29, 1995 Sept. 30, 1994 Sept. 29, 1995 Sept. 30, 1994 -------------- -------------- -------------- -------------- (In thousands except per share amounts) Net earnings applicable to common stock: Net earnings $6,569 $4,248 $20,537 $10,279 Less dividends on preferred stock 19 19 56 56 -------------- -------------- -------------- -------------- $6,550 $4,229 $20,481 $10,223 ============== ============== ============== ============== Average number of common and common equivalent shares outstanding: Average number of common shares outstanding 11,497 11,554 11,454 11,554 Dilutive effect of stock options computed on the treasury stock method 186 25 152 58 -------------- -------------- -------------- -------------- 11,683 11,579 11,606 11,612 ============== ============== ============== ============== Net earnings per common and common equivalent share $.56 $.37 $1.76 $.88 ============== ============== ============== ============== Primary and fully diluted earnings per share are substantially the same.