<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  June  26,  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>                                 MAR-28-1998
<PERIOD-END>                                   JUN-26-1998
<EXCHANGE-RATE>                                1
<CASH>                                         34,226
<SECURITIES>                                   0
<RECEIVABLES>                                  91,728
<ALLOWANCES>                                   5,229
<INVENTORY>                                    43,822
<CURRENT-ASSETS>                               177,395
<PP&E>                                         199,671
<DEPRECIATION>                                 101,065
<TOTAL-ASSETS>                                 283,798
<CURRENT-LIABILITIES>                          68,874
<BONDS>                                        7,210
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       25,833
<OTHER-SE>                                     152,368
<TOTAL-LIABILITY-AND-EQUITY>                   283,798
<SALES>                                        115,153
<TOTAL-REVENUES>                               115,153
<CGS>                                          57,066
<TOTAL-COSTS>                                  57,066
<OTHER-EXPENSES>                               38,522
<LOSS-PROVISION>                               294
<INTEREST-EXPENSE>                             173
<INCOME-PRETAX>                                19,565
<INCOME-TAX>                                   6,800
<INCOME-CONTINUING>                            12,765
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   12,765
<EPS-PRIMARY>                                  0.49
<EPS-DILUTED>                                  0.48