<ARTICLE>                     5
<LEGEND>
     This schedule contains summary financial  information  extracted from Graco
     Inc. and subsidiaries  consolidated statements of earnings and consolidated
     balance  sheets for the quarterly  period ending  September 26, 1997 and is
     qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK>                                                                 0000042888
<NAME>                                                                GRACO INC.
<MULTIPLIER>                                                               1,000
<CURRENCY>                                                          U.S. DOLLARS
       
                                                                 
<PERIOD-TYPE>                                                              3-MOS
<FISCAL-YEAR-END>                                                    DEC-26-1997
<PERIOD-START>                                                       JUN-28-1997
<PERIOD-END>                                                         SEP-27-1997
<EXCHANGE-RATE>                                                                1
<CASH>                                                                     7,382
<SECURITIES>                                                                   0
<RECEIVABLES>                                                             82,566
<ALLOWANCES>                                                               4,196
<INVENTORY>                                                               44,768
<CURRENT-ASSETS>                                                         148,562
<PP&E>                                                                   194,343
<DEPRECIATION>                                                            94,310
<TOTAL-ASSETS>                                                           257,661
<CURRENT-LIABILITIES>                                                     72,314
<BONDS>                                                                    8,765
<PREFERRED-MANDATORY>                                                          0
<PREFERRED>                                                                    0
<COMMON>                                                                  17,020
<OTHER-SE>                                                               127,387
<TOTAL-LIABILITY-AND-EQUITY>                                             257,661
<SALES>                                                                  305,740
<TOTAL-REVENUES>                                                         305,740
<CGS>                                                                    156,446
<TOTAL-COSTS>                                                            156,446
<OTHER-EXPENSES>                                                         106,566
<LOSS-PROVISION>                                                             101
<INTEREST-EXPENSE>                                                           663
<INCOME-PRETAX>                                                           42,728
<INCOME-TAX>                                                              13,250
<INCOME-CONTINUING>                                                       29,478
<DISCONTINUED>                                                                 0
<EXTRAORDINARY>                                                                0
<CHANGES>                                                                      0
<NET-INCOME>                                                              29,478
<EPS-PRIMARY>                                                               1.69
<EPS-DILUTED>                                                               1.69