<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 March 27,
          1998 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-25-1998
<PERIOD-START>                             DEC-27-1997
<PERIOD-END>                               MAR-27-1998
<EXCHANGE-RATE>                                      1
<CASH>                                          28,383
<SECURITIES>                                         0
<RECEIVABLES>                                   83,699
<ALLOWANCES>                                     4,628
<INVENTORY>                                     46,170
<CURRENT-ASSETS>                               170,483
<PP&E>                                         197,284
<DEPRECIATION>                                  98,177
<TOTAL-ASSETS>                                 277,176
<CURRENT-LIABILITIES>                           71,930
<BONDS>                                          7,605
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        25,798
<OTHER-SE>                                     142,045
<TOTAL-LIABILITY-AND-EQUITY>                   277,176
<SALES>                                        105,717
<TOTAL-REVENUES>                               105,717
<CGS>                                           53,772
<TOTAL-COSTS>                                   53,772
<OTHER-EXPENSES>                                38,098
<LOSS-PROVISION>                                   278
<INTEREST-EXPENSE>                                 225
<INCOME-PRETAX>                                 13,847
<INCOME-TAX>                                     4,900
<INCOME-CONTINUING>                              8,947
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     8,947
<EPS-PRIMARY>                                     0.35
<EPS-DILUTED>                                     0.34