<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