A term commonly used to indicate that someone (often the speaker) has come off the loser. This phrase can be applied to competitions such as video games and sporting events, as well as such things as tests or writing papers.
How was the econ test?
Dude, it totally ate my lunch...
Did you see Manning just get sacked?
Yeah, that linebacker totally ate his lunch!
I need help in bottom lane, this Warwick is eating my lunch!
Used when faced with a difficult challenge. Came from the common instance when a school yard bully would take lunch money from a smaller kid and use it to by his own lunch.
To copy someone in a blatant manner. Taking something from someone and using it as if it's your own for financial gain and therefore taking food out their mouth.