EXHIBIT 11 GRACO INC. AND SUBSIDIARIES COMPUTATION OF NET EARNINGS PER COMMON SHARE (Unaudited) Thirteen Weeks Ended ---------------------------------- Mar. 26, 1999 Mar. 27, 1998 ------------- -------------- Net earnings applicable to common shareholders for basic and diluted earnings per share $ 11,201 $ 8,947 Weighted average shares outstanding for basic earnings per share 20,104 25,635 Dilutive effect of stock options computed using the treasury stock method and the average market price 502 604 Weighted average shares outstanding for diluted earnings per share 20,606 26,239 Basic earnings per share $ 0.56 $ 0.35 Diluted earnings per share 0.54 0.34