(Ok, now all this pretty much says that Santa is a person to fear. "You better watch out" suggests this. "You better not cry, you better not pout" suggests that if you do, he'll kill you. Or do some evil thing to you. This is a warning. Now they're going to tell you WHY you should be afraid...)
Santa Claus is coming to town
(Doesn't that just scare the bejeezes out of you? This guy who you have to watch out for, is on his way to YOUR town!)
Next Verse
This is too much for me. Return home.
You're dumb. Let me tell you about it...