<ARTICLE>                     5
<LEGEND>
     Financial Data Schedule for the Year Ended 12/25/98
</LEGEND>
<CIK>                                          0000042888
<NAME>                                         GRACO INC.
<MULTIPLIER>                                   1,000
<CURRENCY>                                     U.S. Dollars
       
                                            
<PERIOD-TYPE>                                  12-MOS
<FISCAL-YEAR-END>                              DEC-25-1998
<PERIOD-START>                                 DEC-27-1997
<PERIOD-END>                                   DEC-25-1998
<EXCHANGE-RATE>                                1
<CASH>                                         3,555
<SECURITIES>                                   0
<RECEIVABLES>                                  84,546
<ALLOWANCES>                                   4,400
<INVENTORY>                                    34,018
<CURRENT-ASSETS>                               131,320
<PP&E>                                         199,122
<DEPRECIATION>                                 102,756
<TOTAL-ASSETS>                                 233,702
<CURRENT-LIABILITIES>                          82,966
<BONDS>                                        115,739
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       20,097
<OTHER-SE>                                     (10,784)
<TOTAL-LIABILITY-AND-EQUITY>                   233,702
<SALES>                                        432,185
<TOTAL-REVENUES>                               432,185
<CGS>                                          212,784
<TOTAL-COSTS>                                  212,748
<OTHER-EXPENSES>                               148,038
<LOSS-PROVISION>                               764
<INTEREST-EXPENSE>                             5,319
<INCOME-PRETAX>                                71,363
<INCOME-TAX>                                   24,100
<INCOME-CONTINUING>                            47,263
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   47,263
<EPS-PRIMARY>                                  2.06
<EPS-DILUTED>                                  2.01