EXHIBIT 11 GRACO INC. AND SUBSIDIARIES COMPUTATION OF NET EARNINGS PER COMMON SHARE (Unaudited) Thirteen Weeks Ended -------------------- Mar 27, 1998 Mar 28, 1997 ------------ ------------ Net earnings applicable to common shareholders for basic and diluted earnings per share $ 8,947 $ 6,181 ============ ============ Weighted average shares outstanding for basic 25,635 25,659 earnings per share Dilutive effect of stock options computed using the treasury stock method and the average market price 604 589 Weighted average shares outstanding for diluted earnings per share 26,239 26,248 ============ ============ Basic earnings per share $ 0.35 $ 0.24 ============ ============ Diluted earnings per share $ 0.34 $ 0.24 ============ ============