Abstract: A packaging machine for penny packing products, such as bagels, bread, donuts, in pre-made plastic bags includes an endless chain carrying a plurality of regularly spaced bag grippers, the chain being entrained about sprocket wheels to define first and second flights. The bag grippers pick up a topmost bag from a stack while traversing the first flight and carry it to a bag filling station aligned with the second flight. An infeed conveyor has a plurality of transversely extending product trays containing the articles to be packaged which are transported with intermittent motion to the bag filling station in synchronism with the bag grippers. While the tray is stationary, movement of the bag gripper along the second flight draws the bag over the product-filled tray present at the bag filling station. A product pusher, synchronized with movement of the bag grippers and with the infeed conveyor, pushes the bagged products off the infeed conveyor onto a take-away conveyor.