The term 'ATE FANCILY' can be broken down into two crossword solutions: 'DINED' (5 letters) and 'FANCILY' (7 letters). The term 'ATE FANCILY' implies that someone had a meal in an elaborate or luxurious manner. This could mean that the person had a formal dinner with multiple courses, or that they ate a simple meal with expensive ingredients. In either case, the implication is that the meal was enjoyed in a luxurious or special way.