Another way of saying "Gross". To be nasty and or disturbing in several ways. (derived from groaty)
"Dag gon, That lady wears the same spandex leggings and jean skirt EVERYDAY of the year..that's groats!"
Historic: traditional African dish of stewed goat scrotum. Brought to America by slaves and adapted to Southern cooking conventions.
Current: Served deep fried at breakfast at any small diner in South Carolina, Georgia, and lower. Interestingly, nobody likes it, but they think other people like it. Yankees will often order it, mistaking it for grits (a more common and even grosser dish.)
Yankee1: What are groats?
Yankee2: Some podunk cornpone sorta thing.
Yankee1: I'll have that.
Yankee1: Wow, this bacon's really leathery.